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) -- Southwest Bancorp (Nasdaq: OKSB) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow.
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- Powered by its strong earnings growth of 140.74% and other important driving factors, this stock has surged by 116.87% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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 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 161.8% when compared to the same quarter one year prior, rising from -$9.53 million to $5.89 million.
- SOUTHWEST BANCORP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. 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, SOUTHWEST BANCORP INC swung to a loss, reporting -$3.73 versus $0.74 in the prior year. This year, the market expects an improvement in earnings ($0.80 versus -$3.73).
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Commercial Banks industry and the overall market, SOUTHWEST BANCORP INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $12.39 million or 17.27% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, SOUTHWEST BANCORP INC has marginally lower results.
-- Written by a member of TheStreet Ratings Staff