Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model NEW YORK ( TheStreet) -- Middleburg Financial (Nasdaq: MBRG) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
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- The revenue growth came in higher than the industry average of 16.7%. Since the same quarter one year prior, revenues slightly increased by 5.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- MIDDLEBURG FINANCIAL CORP has improved earnings per share by 47.0% 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, MIDDLEBURG FINANCIAL CORP turned its bottom line around by earning $0.71 versus -$0.38 in the prior year. This year, the market expects an improvement in earnings ($0.95 versus $0.71).
- 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 47.5% when compared to the same quarter one year prior, rising from $1.20 million to $1.77 million.
- Net operating cash flow has significantly increased by 247.79% to $16.93 million when compared to the same quarter last year. In addition, MIDDLEBURG FINANCIAL CORP has also vastly surpassed the industry average cash flow growth rate of 57.28%.
- The gross profit margin for MIDDLEBURG FINANCIAL CORP is currently very high, coming in at 84.10%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.20% trails the industry average.
-- Written by a member of TheStreet Ratings Staff