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) -- Stifel Financial (NYSE: SF) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.
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- SF's revenue growth has slightly outpaced the industry average of 22.1%. Since the same quarter one year prior, revenues rose by 25.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- STIFEL FINANCIAL 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 year. We feel that this trend should continue. During the past fiscal year, STIFEL FINANCIAL CORP turned its bottom line around by earning $1.33 versus -$0.15 in the prior year. This year, the market expects an improvement in earnings ($2.18 versus $1.33).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Capital Markets industry average. The net income increased by 69.1% when compared to the same quarter one year prior, rising from $22.30 million to $37.71 million.
- Net operating cash flow has significantly increased by 582.54% to $252.14 million when compared to the same quarter last year. In addition, STIFEL FINANCIAL CORP has also vastly surpassed the industry average cash flow growth rate of -118.79%.
-- Written by a member of TheStreet Ratings Staff