NEW YORK ( TheStreet) -- First Community Bancshares Inc Bluefield (Nasdaq: FCBC) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, deteriorating net income and feeble growth in the company's earnings per share.
- ACTIVE STOCK TRADERS: Check out TheStreet's special offer for Real Money, headlined by Jim Cramer, now!
- The gross profit margin for FIRST CMNTY BANCSHARES INC is currently very high, coming in at 80.60%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, FCBC's net profit margin of 12.50% significantly trails the industry average.
- Despite the weak revenue results, FCBC has outperformed against the industry average of 31.3%. Since the same quarter one year prior, revenues slightly dropped by 6.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
- 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 significantly decreased by 28.8% when compared to the same quarter one year ago, falling from $5.73 million to $4.08 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Commercial Banks industry and the overall market, FIRST CMNTY BANCSHARES INC's return on equity is below that of both the industry average and the S&P 500.
-- Written by a member of TheStreet Ratings Staff