Tompkins Financial Corporation Stock Downgraded (TMP)

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) -- Tompkins Financial Corporation (AMEX: TMP) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

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Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 29.9%. Since the same quarter one year prior, revenues rose by 25.3%. 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 gross profit margin for TOMPKINS FINANCIAL CORP is currently very high, coming in at 87.50%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, TMP's net profit margin of 6.00% significantly trails the industry average.
  • The share price of TOMPKINS FINANCIAL CORP has not done very well: it is down 5.13% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
  • Net operating cash flow has significantly decreased to -$0.37 million or 101.67% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
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Tompkins Financial Corporation operates as a community-based financial services company in New York. The company offers deposit products, such as checking accounts, savings accounts, time deposits, IRA products, brokered time deposits, and municipal money market accounts. The company has a P/E ratio of 12.9, below the S&P 500 P/E ratio of 17.7. Tompkins Financial has a market cap of $542.2 million and is part of the financial sector and banking industry. Shares are up 8.7% year to date as of the close of trading on Friday.

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

-- Written by a member of TheStreet Ratings Staff

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