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) -- PremierWest Bancorp (Nasdaq: PRWT) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins, good cash flow from operations and increase in stock price during the past year. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.
- EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.
- The gross profit margin for PREMIERWEST BANCORP is currently very high, coming in at 90.60%. 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 -47.00% is in-line with the industry average.
- Net operating cash flow has significantly increased by 75.72% to $4.29 million when compared to the same quarter last year. Despite an increase in cash flow of 75.72%, PREMIERWEST BANCORP is still growing at a significantly lower rate than the industry average of 560.74%.
- 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 Commercial Banks industry and the overall market, PREMIERWEST BANCORP's return on equity significantly trails that of both the industry average and the S&P 500.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Commercial Banks industry. The net income has significantly decreased by 96.1% when compared to the same quarter one year ago, falling from -$3.38 million to -$6.64 million.
-- Written by a member of TheStreet Ratings Staff