NEW YORK ( TheStreet) -- TRUSTCO BANK CORP N Y (Nasdaq: TRST) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the Thrifts & Mortgage Finance industry average, but is less than that of the S&P 500. The net income increased by 10.4% when compared to the same quarter one year prior, going from $8.36 million to $9.23 million.
  • The gross profit margin for TRUSTCO BANK CORP/NY is currently very high, coming in at 73.90%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 20.80% is above that of the industry average.
  • Net operating cash flow has significantly increased by 135.65% to $29.53 million when compared to the same quarter last year. In addition, TRUSTCO BANK CORP/NY has also vastly surpassed the industry average cash flow growth rate of -114.06%.
  • TRUSTCO BANK CORP/NY's earnings per share declined by 9.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TRUSTCO BANK CORP/NY increased its bottom line by earning $0.38 versus $0.36 in the prior year. This year, the market expects an improvement in earnings ($0.39 versus $0.38).
  • Despite the weak revenue results, TRST has outperformed against the industry average of 18.9%. Since the same quarter one year prior, revenues slightly dropped by 1.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

TrustCo Bank Corp NY operates as the holding company for Trustco Bank that provides various banking products and services to individuals, partnerships, and corporations. The company accepts deposits and originates loans and investments. The company has a P/E ratio of 14.6, above the average banking industry P/E ratio of 14.4 and below the S&P 500 P/E ratio of 17.7. TRUSTCO BANK CORP N Y has a market cap of $517 million and is part of the financial sector and banking industry. Shares are down 12.3% year to date as of the close of trading on Thursday.

You can view the full TRUSTCO BANK CORP N Y Ratings Report or get investment ideas from our investment research center.
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