Beneficial Mutual Bancorp Inc Stock Upgraded (BNCL)

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) -- Beneficial Mutual Bancorp (Nasdaq: BNCL) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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Highlights from the ratings report include:
  • Net operating cash flow has significantly increased by 183.44% to $19.44 million when compared to the same quarter last year. In addition, BENEFICIAL MUTUAL BANCORP has also vastly surpassed the industry average cash flow growth rate of -131.38%.
  • The gross profit margin for BENEFICIAL MUTUAL BANCORP is currently very high, coming in at 72.30%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, BNCL's net profit margin of 8.09% significantly trails the industry average.
  • BENEFICIAL MUTUAL BANCORP's earnings per share declined by 37.5% 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, BENEFICIAL MUTUAL BANCORP increased its bottom line by earning $0.18 versus $0.15 in the prior year. This year, the market expects an improvement in earnings ($0.21 versus $0.18).
  • BNCL, with its decline in revenue, underperformed when compared the industry average of 3.8%. Since the same quarter one year prior, revenues slightly dropped by 6.8%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Thrifts & Mortgage Finance industry and the overall market on the basis of return on equity, BENEFICIAL MUTUAL BANCORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
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Beneficial Mutual Bancorp, Inc. operates as a holding company for Beneficial Mutual Savings Bank that provides consumer and commercial banking services to individuals, businesses, and nonprofit organizations in the United States. The company has a P/E ratio of 53.6, above the S&P 500 P/E ratio of 17.7. Beneficial Mutual has a market cap of $764.4 million and is part of the financial sector and banking industry. Shares are up 3.1% year to date as of the close of trading on Tuesday.

You can view the full Beneficial Mutual 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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