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) -- Waterstone Financial (Nasdaq: WSBF) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, robust revenue growth, notable return on equity and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
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- Powered by its strong earnings growth of 114.28% and other important driving factors, this stock has surged by 106.69% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, WSBF should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- WATERSTONE FINANCIAL 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 two years. During the past fiscal year, WATERSTONE FINANCIAL INC turned its bottom line around by earning $1.12 versus -$0.24 in the prior year.
- WSBF's revenue growth trails the industry average of 40.6%. Since the same quarter one year prior, revenues rose by 18.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Thrifts & Mortgage Finance industry and the overall market, WATERSTONE FINANCIAL INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- Net operating cash flow has significantly increased by 5142.40% to $30.04 million when compared to the same quarter last year. In addition, WATERSTONE FINANCIAL INC has also vastly surpassed the industry average cash flow growth rate of 1.97%.
-- Written by a member of TheStreet Ratings Staff