NEW YORK ( TheStreet) -- Pacific Continental (Nasdaq: PCBK) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, expanding profit margins and good cash flow from operations. 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 net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Commercial Banks industry average. The net income increased by 124.7% when compared to the same quarter one year prior, rising from $1.15 million to $2.59 million.
- The gross profit margin for PACIFIC CONTINENTAL CORP is currently very high, coming in at 76.80%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, PCBK's net profit margin of 15.50% significantly trails the industry average.
- Net operating cash flow has significantly increased by 68.95% to $8.97 million when compared to the same quarter last year. Despite an increase in cash flow of 68.95%, PACIFIC CONTINENTAL CORP is still growing at a significantly lower rate than the industry average of 1292.43%.
- 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, PACIFIC CONTINENTAL CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
- PCBK has underperformed the S&P 500 Index, declining 13.13% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.