NEW YORK ( TheStreet) -- S.Y. Bancorp (Nasdaq: SYBT) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins, growth in earnings per share and good cash flow from operations. 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 significantly exceeded that of the Commercial Banks industry average, but is less than that of the S&P 500. The net income increased by 4.8% when compared to the same quarter one year prior, going from $6.05 million to $6.34 million.
- The gross profit margin for S Y BANCORP INC is currently very high, coming in at 78.40%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 20.60% significantly outperformed against the industry average.
- S Y BANCORP INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, S Y BANCORP INC increased its bottom line by earning $1.71 versus $1.66 in the prior year. This year, the market expects an improvement in earnings ($1.75 versus $1.71).
- Net operating cash flow has slightly increased to $18.72 million or 6.46% when compared to the same quarter last year. Despite an increase in cash flow of 6.46%, S Y BANCORP INC is still growing at a significantly lower rate than the industry average of 90.77%.
- SYBT, with its decline in revenue, slightly underperformed the industry average of 0.8%. Since the same quarter one year prior, revenues slightly dropped by 1.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
-- Written by a member of TheStreet RatingsStaff