NEW YORK ( TheStreet) -- Bancorp (Nasdaq: TBBK) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 4.6%. Since the same quarter one year prior, revenues rose by 14.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • 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 288.1% when compared to the same quarter one year prior, rising from $0.59 million to $2.28 million.
  • Net operating cash flow has significantly increased by 100.52% to $15.27 million when compared to the same quarter last year. Despite an increase in cash flow of 100.52%, BANCORP INC is still growing at a significantly lower rate than the industry average of 1036.93%.
  • 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, BANCORP INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • TBBK has underperformed the S&P 500 Index, declining 16.01% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.

The Bancorp, Inc. operates as the holding company for The Bancorp Bank that provides various commercial and retail banking and related products and services to small and mid-size businesses and their principals. The company has a P/E ratio of 29.4, above the average banking industry P/E ratio of 28.3 and above the S&P 500 P/E ratio of 17.7. Shares are down 22.6% year to date as of the close of trading on Monday.
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