NEW YORK ( TheStreet) -- Alliance Bancorp Inc Of Pennsylvania (Nasdaq: ALLB) has been upgraded by TheStreet Ratings from hold to buy. Among the primary strengths of the company is its generally strong 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:
- Net operating cash flow has remained constant at $1.08 million with no significant change when compared to the same quarter last year. Even though ALLIANCE BANCORP OF PA's cash flow growth was minimal, the firm managed to surpass its industry's average growth rate of -159.66%.
- Despite the weak revenue results, ALLB has outperformed against the industry average of 23.3%. Since the same quarter one year prior, revenues slightly dropped by 5.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Thrifts & Mortgage Finance industry and the overall market on the basis of return on equity, ALLIANCE BANCORP OF PA underperformed against that of the industry average and is significantly less than that of the S&P 500.
- The gross profit margin for ALLIANCE BANCORP OF PA is currently lower than what is desirable, coming in at 30.30%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -15.80% is significantly below that of the industry average.
- In its most recent trading session, ALLB has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Despite the decline in its share price over the last year, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry. We feel, however, that other strengths this company displays compensate for this.