Firstbank Corp Michigan Stock Upgraded (FBMI)

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) -- Firstbank Corp Michigan (Nasdaq: FBMI) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, attractive valuation levels and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

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Highlights from the ratings report include:
  • Powered by its strong earnings growth of 106.66% and other important driving factors, this stock has surged by 117.02% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • FIRSTBANK CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, FIRSTBANK CORP increased its bottom line by earning $0.50 versus $0.27 in the prior year. This year, the market expects an improvement in earnings ($1.06 versus $0.50).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 66.6% when compared to the same quarter one year prior, rising from $1.63 million to $2.72 million.
  • The gross profit margin for FIRSTBANK CORP is currently very high, coming in at 81.70%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 14.60% trails the industry average.
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Firstbank Corporation, through its subsidiaries, provides commercial banking products and services. It accepts checking, savings, and time deposits. The company has a P/E ratio of 10.6, below the S&P 500 P/E ratio of 17.7. Firstbank Corp Michigan has a market cap of $87.5 million and is part of the financial sector and banking industry. Shares are up 114.4% year to date as of the close of trading on Tuesday.

You can view the full Firstbank Corp Michigan Ratings Report or get investment ideas from our investment research center.

-- Written by a member of TheStreet Ratings Staff

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.

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Firstbank Corp Michigan Stock Downgraded (FBMI)

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