Yadkin Valley Financial Corporation Stock Downgraded (YAVY)

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) -- Yadkin Valley Financial Corporation (Nasdaq: YAVY) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, attractive valuation levels and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and feeble growth in the company's earnings per share.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, YAVY's share price has jumped by 81.31%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, YADKIN VALLEY FINANCIAL CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • 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 79.4% when compared to the same quarter one year ago, falling from $3.68 million to $0.76 million.
  • Net operating cash flow has decreased to $17.42 million or 26.15% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
.

Yadkin Valley Financial Corporation operates as the holding company for Yadkin Valley Bank and Trust Company that provides consumer and commercial banking services in North Carolina and South Carolina. The company has a P/E ratio of four, below the S&P 500 P/E ratio of 17.7. Yadkin Valley Financial has a market cap of $63.8 million and is part of the financial sector and banking industry. Shares are up 105% year to date as of the close of trading on Wednesday.

You can view the full Yadkin Valley Financial Ratings Report or get investment ideas from our investment research center.

-- Written by a member of TheStreet Ratings Staff

FREE for a limited time only: Get TheStreet Ratings #1 Stock Report NOW!.

null

More from Markets

OPEC, Bank Stress Tests, Disney and Tesla - 5 Things You Must Know

OPEC, Bank Stress Tests, Disney and Tesla - 5 Things You Must Know

Big Banks Pass the Stress Tests and 4 Other Stories to Watch Friday Morning

Big Banks Pass the Stress Tests and 4 Other Stories to Watch Friday Morning

OPEC Debating 1 Million Barrel Oil Market Boost as Iran Signals Support

OPEC Debating 1 Million Barrel Oil Market Boost as Iran Signals Support

Dow Set to Snap 8-Day Losing Streak as Stocks Recover, But Trade War Lingers

Dow Set to Snap 8-Day Losing Streak as Stocks Recover, But Trade War Lingers

Foxconn Chairman Terry Gou: US and China Are Waging a Global 'Tech War'

Foxconn Chairman Terry Gou: US and China Are Waging a Global 'Tech War'