NEW YORK ( TheStreet) -- CoBiz Financial (Nasdaq: COBZ) 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, compelling growth in net income, expanding profit margins, notable return on equity and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Highlights from the ratings report include:
- COBZ's revenue growth has slightly outpaced the industry average of 3.0%. Since the same quarter one year prior, revenues slightly increased by 5.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The gross profit margin for COBIZ FINANCIAL INC is currently very high, coming in at 90.60%. It has increased significantly from the same period last year. Along with this, the net profit margin of 53.90% significantly outperformed against the industry average.
- 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 278.9% when compared to the same quarter one year prior, rising from -$12.27 million to $21.95 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, COBIZ FINANCIAL INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- COBIZ FINANCIAL INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, COBIZ FINANCIAL INC turned its bottom line around by earning $0.76 versus -$0.72 in the prior year. For the next year, the market is expecting a contraction of 35.5% in earnings ($0.49 versus $0.76).
-- Written by a member of TheStreet RatingsStaff