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) -- Camco Financial (Nasdaq: CAFI) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.
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- Compared to its closing price of one year ago, CAFI's share price has jumped by 40.80%, exceeding the performance of the broader market during that same time frame. Although CAFI had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Thrifts & Mortgage Finance industry and the overall market on the basis of return on equity, CAMCO FINANCIAL CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- CAMCO FINANCIAL CORP's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, CAMCO FINANCIAL CORP increased its bottom line by earning $0.45 versus $0.03 in the prior year.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Thrifts & Mortgage Finance industry average, but is greater than that of the S&P 500. The net income increased by 20.8% when compared to the same quarter one year prior, going from $0.41 million to $0.50 million.
-- Written by a member of TheStreet Ratings Staff