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) -- Northeast Community Bancorp (Nasdaq: NECB) has been upgraded by TheStreet Ratings from sell to hold. The company's strongest point has been its very decent return on equity which we feel should persist. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and poor profit margins.
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- The revenue fell significantly faster than the industry average of 39.3%. Since the same quarter one year prior, revenues slightly dropped by 1.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- In its most recent trading session, NECB has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- NORTHEAST COMMUNITY BANCORP has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, NORTHEAST COMMUNITY BANCORP swung to a loss, reporting -$0.20 versus $0.20 in the prior year.
- The gross profit margin for NORTHEAST COMMUNITY BANCORP is rather low; currently it is at 20.90%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -35.78% is significantly below that of the industry average.
- Net operating cash flow has decreased to $0.50 million or 43.66% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
-- Written by a member of TheStreet Ratings Staff