NEW YORK ( TheStreet) -- BCB Bancorp (Nasdaq: BCBP) has been upgraded by TheStreet Ratings from hold to buy. Among the primary strengths of the company is its revenue growth. 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 revenue growth greatly exceeded the industry average of 30.4%. Since the same quarter one year prior, revenues slightly increased by 8.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The change in net income from the same quarter one year ago has exceeded that of the Commercial Banks industry average, but is less than that of the S&P 500. The net income has decreased by 17.3% when compared to the same quarter one year ago, dropping from $1.92 million to $1.59 million.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Commercial Banks industry and the overall market, BCB BANCORP INC's return on equity is below that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $4.68 million or 36.56% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, BCBP has underperformed the S&P 500 Index, declining 6.67% from its price level of one year ago. Despite the stock's decline during the last year, it is still somewhat more expensive (in proportion to its earnings over the last year) than most other stocks in its industry. We feel, however, that other strengths this company displays offset this slight negative.
-- Written by a member of TheStreet Ratings Staff