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) -- Hanmi Financial Corporation (Nasdaq: HAFC) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, notable return on equity, expanding profit margins and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
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- 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 153.9% when compared to the same quarter one year prior, rising from $5.51 million to $13.98 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.8%. Since the same quarter one year prior, revenues slightly increased by 1.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Commercial Banks industry and the overall market, HANMI FINANCIAL CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for HANMI FINANCIAL CORP is currently very high, coming in at 90.10%. It has increased significantly from the same period last year. Along with this, the net profit margin of 37.16% significantly outperformed against the industry average.
- Powered by its strong earnings growth of 100.00% and other important driving factors, this stock has surged by 97.55% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, HAFC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
-- Written by a member of TheStreet Ratings Staff