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 downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins, notable return on equity and increase in net income. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.
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- 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 ($0.20 versus $0.15).
- The gross profit margin for BENEFICIAL MUTUAL BANCORP is currently very high, coming in at 70.80%. 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 8.20% significantly trails the industry average.
- BNCL, with its decline in revenue, slightly underperformed the industry average of 6.2%. Since the same quarter one year prior, revenues slightly dropped by 0.4%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry, implying reduced upside potential.
- Net operating cash flow has decreased to $17.28 million or 44.52% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
-- Written by a member of TheStreet Ratings Staff