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) -- Beneficial Mutual Bancorp (Nasdaq: BNCL) 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, compelling growth in net income, good cash flow from operations, expanding profit margins and increase in stock price during the past year. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
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- BNCL's revenue growth has slightly outpaced the industry average of 8.9%. Since the same quarter one year prior, revenues slightly increased by 0.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Thrifts & Mortgage Finance industry average. The net income increased by 17.4% when compared to the same quarter one year prior, going from $1.98 million to $2.32 million.
- Net operating cash flow has significantly increased by 173.46% to $8.45 million when compared to the same quarter last year. In addition, BENEFICIAL MUTUAL BANCORP has also vastly surpassed the industry average cash flow growth rate of -123.29%.
- BENEFICIAL MUTUAL BANCORP reported flat earnings per share in the most recent quarter. 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, BENEFICIAL MUTUAL BANCORP turned its bottom line around by earning $0.15 versus -$0.11 in the prior year. This year, the market expects an improvement in earnings ($0.22 versus $0.15).
- The gross profit margin for BENEFICIAL MUTUAL BANCORP is rather high; currently it is at 69.20%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, BNCL's net profit margin of 4.50% significantly trails the industry average.
-- Written by a member of TheStreet Ratings Staff