Premier Financial Bancorp Inc. Stock Upgraded (PFBI)

NEW YORK ( TheStreet) -- Premier Financial Bancorp (Nasdaq: PFBI) 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, attractive valuation levels, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from the ratings report include:
  • PFBI's revenue growth has slightly outpaced the industry average of 2.1%. Since the same quarter one year prior, revenues slightly increased by 2.3%. 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 PREMIER FINANCIAL BANCORP is currently very high, coming in at 81.20%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.00% is above that of the industry average.
  • Net operating cash flow has increased to $5.08 million or 46.97% when compared to the same quarter last year. Despite an increase in cash flow of 46.97%, PREMIER FINANCIAL BANCORP is still growing at a significantly lower rate than the industry average of 331.70%.
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Commercial Banks industry average, but is less than that of the S&P 500. The net income has decreased by 13.9% when compared to the same quarter one year ago, dropping from $2.11 million to $1.81 million.

Premier Financial Bancorp, Inc., a multi-bank holding company, provides community banking services to individuals and small-to-medium sized businesses. The company has a P/E ratio of 8.4, above the average banking industry P/E ratio of 7.3 and below the S&P 500 P/E ratio of 17.7. Premier Financial has a market cap of $42.5 million and is part of the financial sector and banking industry. Shares are up 38.6% year to date as of the close of trading on Thursday.

You can view the full Premier Financial Ratings Report or get investment ideas from our investment research center.
-- Written by a member of TheStreet RatingsStaff