NEW YORK ( TheStreet) -- Brookline Bancorp (Nasdaq: BRKL) 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, expanding profit margins, good cash flow from operations and notable return on equity. 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 revenue growth greatly exceeded the industry average of 23.4%. Since the same quarter one year prior, revenues slightly increased by 9.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The gross profit margin for BROOKLINE BANCORP INC is currently very high, coming in at 76.60%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 17.20% is above that of the industry average.
- Net operating cash flow has increased to $15.16 million or 26.60% when compared to the same quarter last year. In addition, BROOKLINE BANCORP INC has also vastly surpassed the industry average cash flow growth rate of -146.32%.
- 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 Thrifts & Mortgage Finance industry and the overall market on the basis of return on equity, BROOKLINE BANCORP INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- BROOKLINE BANCORP INC's earnings per share declined by 8.3% 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, BROOKLINE BANCORP INC increased its bottom line by earning $0.46 versus $0.33 in the prior year. This year, the market expects an improvement in earnings ($0.50 versus $0.46).