NEW YORK ( TheStreet) -- Bryn Mawr Bank (Nasdaq: BMTC) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, expanding profit margins, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 21.7%. Since the same quarter one year prior, revenues rose by 38.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The gross profit margin for BRYN MAWR BANK CORP is currently very high, coming in at 81.60%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 17.80% is above that of the industry average.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 99.7% when compared to the same quarter one year prior, rising from $2.41 million to $4.81 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, BRYN MAWR BANK CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.

Bryn Mawr Bank Corporation operates as the holding company for The Bryn Mawr Trust Company, which provides various commercial and retail banking services. The company has a P/E ratio of 16.1, above the average banking industry P/E ratio of 15.2 and below the S&P 500 P/E ratio of 17.7. Bryn Mawr has a market cap of $231.9 million and is part of the financial sector and banking industry. Shares are up 4.1% year to date as of the close of trading on Tuesday.

You can view the full Bryn Mawr Ratings Report or get investment ideas from our investment research center.
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