FBR & Co Stock Upgraded (FBRC)

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) -- FBR (Nasdaq: FBRC) 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 solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

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Highlights from the ratings report include:
  • FBRC's very impressive revenue growth greatly exceeded the industry average of 10.8%. Since the same quarter one year prior, revenues leaped by 143.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • FBR & CO 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 two years. During the past fiscal year, FBR & CO turned its bottom line around by earning $0.36 versus -$3.40 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 270.1% when compared to the same quarter one year prior, rising from -$18.88 million to $32.12 million.
  • Net operating cash flow has significantly increased by 76.45% to $27.58 million when compared to the same quarter last year. In addition, FBR & CO has also vastly surpassed the industry average cash flow growth rate of -78.32%.
  • Powered by its strong earnings growth of 150.00% and other important driving factors, this stock has surged by 86.50% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
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FBR & Co. operates as an investment banking and institutional brokerage company in the United States. The company operates through two segments, Capital Markets and Principal Investing. The company has a P/E ratio of 211.3, above the S&P 500 P/E ratio of 17.7. FBR has a market cap of $226.9 million and is part of the financial sector and financial services industry. Shares are up 21.4% year to date as of the close of trading on Friday.

You can view the full FBR 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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