NEW YORK ( TheStreet) -- Sierra Bancorp (Nasdaq: BSRR) 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, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
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- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Commercial Banks industry average. The net income increased by 22.9% when compared to the same quarter one year prior, going from $1.53 million to $1.88 million.
- The gross profit margin for SIERRA BANCORP/CA is currently very high, coming in at 77.60%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, BSRR's net profit margin of 10.60% significantly trails the industry average.
- Despite the weak revenue results, BSRR has outperformed against the industry average of 25.7%. Since the same quarter one year prior, revenues slightly dropped by 1.4%. 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. When compared to other companies in the Commercial Banks industry and the overall market, SIERRA BANCORP/CA's return on equity is below that of both the industry average and the S&P 500.
- SIERRA BANCORP/CA has improved earnings per share by 18.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, SIERRA BANCORP/CA reported lower earnings of $0.56 versus $0.62 in the prior year. For the next year, the market is expecting a contraction of 3.6% in earnings ($0.54 versus $0.56).
-- Written by a member of TheStreet Ratings Staff