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) -- Bridge Bancorp (Nasdaq: BDGE) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
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- The revenue growth greatly exceeded the industry average of 16.2%. Since the same quarter one year prior, revenues rose by 23.4%. 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 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 23.7% when compared to the same quarter one year prior, going from $2.48 million to $3.06 million.
- Net operating cash flow has increased to $6.90 million or 15.57% when compared to the same quarter last year. In addition, BRIDGE BANCORP INC has also modestly surpassed the industry average cash flow growth rate of 11.29%.
- Compared to its closing price of one year ago, BDGE's share price has jumped by 30.67%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- The gross profit margin for BRIDGE BANCORP INC is currently very high, coming in at 75.00%. Regardless of BDGE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BDGE's net profit margin of 17.50% compares favorably to the industry average.
-- Written by a member of TheStreet Ratings Staff