MB Financial Corporation Stock Upgraded (MBFI)

NEW YORK ( TheStreet) -- MB Financial Corporation (Nasdaq: MBFI) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, expanding profit margins, notable return on equity and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • MB FINANCIAL INC/MD 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. We feel that this trend should continue. During the past fiscal year, MB FINANCIAL INC/MD increased its bottom line by earning $0.52 versus $0.19 in the prior year. This year, the market expects an improvement in earnings ($1.50 versus $0.52).
  • 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 203.7% when compared to the same quarter one year prior, rising from $6.94 million to $21.09 million.
  • The gross profit margin for MB FINANCIAL INC/MD is currently very high, coming in at 86.20%. It has increased significantly from the same period last year. Along with this, the net profit margin of 18.80% significantly outperformed against the industry average.
  • MBFI, with its decline in revenue, underperformed when compared the industry average of 3.1%. Since the same quarter one year prior, revenues fell by 12.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, MB FINANCIAL INC/MD underperformed against that of the industry average and is significantly less than that of the S&P 500.

MB Financial, Inc. operates as a bank holding company for MB Financial Bank, N.A. that provides various financial services to small and middle market businesses, and individuals in the United States. The company has a P/E ratio of 29.4, above the average banking industry P/E ratio of 28.6 and above the S&P 500 P/E ratio of 17.7. MB Financial has a market cap of $1.11 billion and is part of the financial sector and banking industry. Shares are up 22.3% year to date as of the close of trading on Monday.

You can view the full MB Financial Ratings Report or get investment ideas from our investment research center.
-- Written by a member of TheStreet RatingsStaff