Presidential Life Corp. Stock Upgraded (PLFE)

NEW YORK ( TheStreet) -- Presidential Life Corp (Nasdaq: PLFE) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. 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 7.0%. Since the same quarter one year prior, revenues slightly increased by 5.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • PLFE has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign.
  • PRESIDENTIAL LIFE CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, PRESIDENTIAL LIFE CORP increased its bottom line by earning $0.73 versus $0.07 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 95.2% when compared to the same quarter one year prior, rising from $7.08 million to $13.82 million.

Presidential Life Corporation, through its subsidiary, Presidential Life Insurance Company engages in the marketing and sale of various fixed annuity, life insurance, and accident and health insurance products in the United States. The company has a P/E ratio of 7.9, above the average insurance industry P/E ratio of 7.2 and below the S&P 500 P/E ratio of 17.7. Presidential Life has a market cap of $280.1 million and is part of the financial sector and insurance industry. Shares are up 1% year to date as of the close of trading on Tuesday.

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