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) -- United Community Financial Corporation (Nasdaq: UCFC) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.
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- Compared to its closing price of one year ago, UCFC's share price has jumped by 63.95%, exceeding the performance of the broader market during that same time frame. Although UCFC 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.
- Net operating cash flow has significantly increased by 539.98% to $9.46 million when compared to the same quarter last year. In addition, UNITED COMMUNITY FINL CORP has also vastly surpassed the industry average cash flow growth rate of -25.31%.
- The gross profit margin for UNITED COMMUNITY FINL CORP is currently very high, coming in at 74.80%. Regardless of UCFC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, UCFC's net profit margin of 12.11% is significantly lower than the industry average.
- UNITED COMMUNITY FINL CORP 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 suffered a declining pattern earnings per share over the past two years. During the past fiscal year, UNITED COMMUNITY FINL CORP reported poor results of -$0.62 versus $0.00 in the prior year.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Thrifts & Mortgage Finance industry. The net income has significantly decreased by 29.3% when compared to the same quarter one year ago, falling from $3.80 million to $2.68 million.
-- Written by a member of TheStreet Ratings Staff