NEW YORK ( TheStreet) -- AmeriServ Financial (Nasdaq: ASRV) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. 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:
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- AMERISERV FINANCIAL INC/PA 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. During the past fiscal year, AMERISERV FINANCIAL INC/PA increased its bottom line by earning $0.25 versus $0.01 in the prior year.
- 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 58.9% when compared to the same quarter one year prior, rising from $1.11 million to $1.77 million.
- The gross profit margin for AMERISERV FINANCIAL INC/PA is currently very high, coming in at 92.90%. 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 407.40% to $0.50 million when compared to the same quarter last year. In addition, AMERISERV FINANCIAL INC/PA has also vastly surpassed the industry average cash flow growth rate of 91.35%.
-- Written by a member of TheStreet RatingsStaff