NEW YORK ( TheStreet) -- Oriental Financial Group (NYSE: OFG) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and relatively poor performance when compared with the S&P 500 during the past year.
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- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Commercial Banks industry. The net income has significantly decreased by 43.5% when compared to the same quarter one year ago, falling from $26.47 million to $14.96 million.
- In its most recent trading session, OFG has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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 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, ORIENTAL FINANCIAL GROUP INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
- OFG, with its decline in revenue, slightly underperformed the industry average of 16.5%. Since the same quarter one year prior, revenues fell by 21.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- ORIENTAL FINANCIAL GROUP INC's earnings per share declined by 39.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ORIENTAL FINANCIAL GROUP INC turned its bottom line around by earning $0.64 versus -$0.29 in the prior year. This year, the market expects an improvement in earnings ($0.91 versus $0.64).
-- Written by a member of TheStreet Ratings Staff