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) -- Monarch Financial Holdings (Nasdaq: MNRK) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, solid stock price performance, good cash flow from operations and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
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- MNRK's revenue growth has slightly outpaced the industry average of 3.2%. Since the same quarter one year prior, revenues slightly increased by 2.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- 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 Commercial Banks industry and the overall market, MONARCH FINANCIAL HLDGS INC's return on equity exceeds that of both the industry average and the S&P 500.
- Powered by its strong earnings growth of 32.00% and other important driving factors, this stock has surged by 28.32% 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, MNRK should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Net operating cash flow has significantly increased by 841.65% to $186.77 million when compared to the same quarter last year. In addition, MONARCH FINANCIAL HLDGS INC has also vastly surpassed the industry average cash flow growth rate of 13.25%.
- The gross profit margin for MONARCH FINANCIAL HLDGS INC is currently very high, coming in at 95.10%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, MNRK's net profit margin of 11.90% significantly trails the industry average.
-- Written by a member of TheStreet Ratings Staff