NEW YORK ( TheStreet) -- Bank of Commerce Holdings (Nasdaq: BOCH) 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, good cash flow from operations, growth in earnings per share and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Commercial Banks industry average. The net income increased by 27.2% when compared to the same quarter one year prior, rising from $1.62 million to $2.06 million.
- The gross profit margin for BANK OF COMMERCE HOLDINGS is currently very high, coming in at 75.00%. It has increased significantly from the same period last year. Along with this, the net profit margin of 12.80% is above that of the industry average.
- Net operating cash flow has significantly increased by 138.66% to $19.10 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 92.19%.
- BANK OF COMMERCE HOLDINGS reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BANK OF COMMERCE HOLDINGS reported lower earnings of $0.37 versus $0.39 in the prior year. This year, the market expects an improvement in earnings ($0.50 versus $0.37).
- BOCH, with its decline in revenue, slightly underperformed the industry average of 3.1%. Since the same quarter one year prior, revenues fell by 11.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
-- Written by a member of TheStreet RatingsStaff