NEW YORK ( TheStreet) -- Beneficial Mutual Bancorp (Nasdaq: BNCL) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had somewhat weak revenue growth. Highlights from the ratings report include:
- BENEFICIAL MUTUAL BANCORP has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, BENEFICIAL MUTUAL BANCORP turned its bottom line around by earning $0.15 versus -$0.11 in the prior year. This year, the market expects an improvement in earnings ($0.25 versus $0.15).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Thrifts & Mortgage Finance industry. The net income increased by 1746.2% when compared to the same quarter one year prior, rising from -$0.36 million to $5.88 million.
- The gross profit margin for BENEFICIAL MUTUAL BANCORP is rather high; currently it is at 66.00%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 11.60% is above that of the industry average.
- Despite the weak revenue results, BNCL has outperformed against the industry average of 27.9%. Since the same quarter one year prior, revenues slightly dropped by 8.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- 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, BENEFICIAL MUTUAL BANCORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
-- Written by a member of TheStreet RatingsStaff