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) -- CFS Bancorp (Nasdaq: CITZ) 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, impressive record of earnings per share growth and reasonable valuation levels. 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.
- Powered by its strong earnings growth of 180.00% and other important driving factors, this stock has surged by 94.62% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- CFS BANCORP 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, CFS BANCORP INC turned its bottom line around by earning $0.44 versus -$0.98 in the prior year.
- The gross profit margin for CFS BANCORP INC is currently very high, coming in at 85.90%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, CITZ's net profit margin of 12.24% significantly trails the industry average.
- 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. When compared to other companies in the Thrifts & Mortgage Finance industry and the overall market, CFS BANCORP INC's return on equity is below that of both the industry average and the S&P 500.
- 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 206.5% when compared to the same quarter one year prior, rising from $0.49 million to $1.50 million.
-- Written by a member of TheStreet Ratings Staff