NEW YORK ( TheStreet) -- Kearny Financial Corporation (Nasdaq: KRNY) 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, good cash flow from operations, expanding profit margins, increase in stock price during the past year and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Highlights from the ratings report include:
- 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 9500.0% when compared to the same quarter one year prior, rising from -$0.01 million to $0.47 million.
- Net operating cash flow has significantly increased by 227.96% to $5.15 million when compared to the same quarter last year. In addition, KEARNY FINANCIAL CORP has also vastly surpassed the industry average cash flow growth rate of -49.52%.
- The gross profit margin for KEARNY FINANCIAL CORP is rather high; currently it is at 64.00%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 2.00% trails the industry average.
- KEARNY FINANCIAL CORP has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. Stable Earnings per share over the past year indicate the company has sound management over its earnings and share float. During the past fiscal year, KEARNY FINANCIAL CORP increased its bottom line by earning $0.12 versus $0.11 in the prior year.
- This stock has managed to rise its share value by 5.61% over the past twelve months. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
-- Written by a member of TheStreet RatingsStaff