NEW YORK ( TheStreet) -- Westfield Financial (Nasdaq: WFD) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year. Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the Thrifts & Mortgage Finance industry average, but is less than that of the S&P 500. The net income increased by 14.2% when compared to the same quarter one year prior, going from $1.34 million to $1.53 million.
- The gross profit margin for WESTFIELD FINANCIAL INC is rather high; currently it is at 66.30%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.70% is above that of the industry average.
- Despite the weak revenue results, WFD has outperformed against the industry average of 25.7%. Since the same quarter one year prior, revenues slightly dropped by 0.3%. 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, WESTFIELD FINANCIAL INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
- WFD has underperformed the S&P 500 Index, declining 13.17% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
-- Written by a member of TheStreet Ratings Staff