1st United Bancorp Stock Upgraded (FUBC)

NEW YORK ( TheStreet) -- 1st United Bancorp (Nasdaq: FUBC) 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, increase in net income, expanding profit margins, good cash flow from operations and growth in earnings per share. 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 came in higher than the industry average of 1.6%. Since the same quarter one year prior, revenues rose by 14.8%. 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 702.1% when compared to the same quarter one year prior, rising from -$0.23 million to $1.40 million.
  • The gross profit margin for 1ST UNITED BANCORP INC is currently very high, coming in at 80.00%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, FUBC's net profit margin of 9.60% significantly trails the industry average.
  • Net operating cash flow has significantly increased by 522.25% to $5.79 million when compared to the same quarter last year. Despite an increase in cash flow of 522.25%, 1ST UNITED BANCORP INC is still growing at a significantly lower rate than the industry average of 1553.69%.
  • 1ST UNITED BANCORP INC reported significant earnings per share improvement 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, 1ST UNITED BANCORP INC reported lower earnings of $0.08 versus $0.29 in the prior year. This year, the market expects an improvement in earnings ($0.14 versus $0.08).

1st United Bancorp, Inc. operates as the financial holding company for 1st United Bank that provides financial services to residents and businesses in Florida. The company has a P/E ratio of 31.9, below the average banking industry P/E ratio of 33.9 and above the S&P 500 P/E ratio of 17.7. 1st United has a market cap of $176.3 million and is part of the financial sector and banking industry. Shares are up 3.6% year to date as of the close of trading on Thursday.

You can view the full 1st United Ratings Report or get investment ideas from our investment research center.