NEW YORK ( TheStreet) -- Camden National Corporation (Nasdaq: CAC) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, good cash flow from operations, notable return on equity and attractive valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- The gross profit margin for CAMDEN NATIONAL CORP is currently very high, coming in at 77.10%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, CAC's net profit margin of 22.90% significantly trails the industry average.
- Net operating cash flow has significantly increased by 91.46% to $11.38 million when compared to the same quarter last year. Despite an increase in cash flow of 91.46%, CAMDEN NATIONAL CORP is still growing at a significantly lower rate than the industry average of 4312.83%.
- 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, CAMDEN NATIONAL CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- CAMDEN NATIONAL CORP's earnings per share declined by 7.2% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, CAMDEN NATIONAL CORP increased its bottom line by earning $3.23 versus $2.98 in the prior year.