Hingham Institution Savings Stock Upgraded (HIFS)

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) -- Hingham Institution Savings (Nasdaq: HIFS) 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, growth in earnings per share, expanding profit margins, notable return on equity and increase in net income. 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:
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 30.52% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, HIFS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • HINGHAM INSTN FOR SAVINGS has improved earnings per share by 6.8% 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. During the past fiscal year, HINGHAM INSTN FOR SAVINGS increased its bottom line by earning $5.67 versus $4.82 in the prior year.
  • The gross profit margin for HINGHAM INSTN FOR SAVINGS is currently very high, coming in at 77.10%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 26.60% is above that of the industry average.
  • HIFS, with its decline in revenue, slightly underperformed the industry average of 6.8%. Since the same quarter one year prior, revenues slightly dropped by 0.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Thrifts & Mortgage Finance industry and the overall market, HINGHAM INSTN FOR SAVINGS's return on equity exceeds that of both the industry average and the S&P 500.
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Hingham Institution for Savings, a community bank, provides various financial services to individuals and small businesses in Massachusetts. The company has a P/E ratio of 10.2, below the S&P 500 P/E ratio of 17.7. Hingham Institution Savings has a market cap of $133.2 million and is part of the financial sector and banking industry. Shares are up 29.7% year to date as of the close of trading on Wednesday.

You can view the full Hingham Institution Savings 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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