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) -- 1st United Bancorp (Nasdaq: FUBC) 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, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
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- FUBC's revenue growth has slightly outpaced the industry average of 0.4%. Since the same quarter one year prior, revenues slightly increased by 3.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- 1ST UNITED BANCORP INC 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, 1ST UNITED BANCORP INC increased its bottom line by earning $0.15 versus $0.12 in the prior year. This year, the market expects an improvement in earnings ($0.27 versus $0.15).
- 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 101.8% when compared to the same quarter one year prior, rising from $0.86 million to $1.73 million.
- Net operating cash flow has significantly increased by 217.37% to $6.25 million when compared to the same quarter last year. In addition, 1ST UNITED BANCORP INC has also vastly surpassed the industry average cash flow growth rate of 82.78%.
- The gross profit margin for 1ST UNITED BANCORP INC is currently very high, coming in at 88.10%. 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 10.19% trails the industry average.
-- Written by a member of TheStreet Ratings Staff