NEW YORK ( TheStreet) -- Yadkin Financial (Nasdaq: YDKN) 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, good cash flow from operations, expanding profit margins, notable return on equity and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
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- Compared to its closing price of one year ago, YDKN's share price has jumped by 90.61%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, YDKN 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 increased to $12.95 million or 24.96% when compared to the same quarter last year. In addition, YADKIN FINANCIAL CORP has also vastly surpassed the industry average cash flow growth rate of -44.20%.
- The gross profit margin for YADKIN FINANCIAL CORP is currently very high, coming in at 85.54%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, YDKN's net profit margin of 19.42% significantly trails the industry average.
- YADKIN FINANCIAL CORP's earnings per share declined by 28.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, YADKIN FINANCIAL CORP continued to lose money by earning -$1.65 versus -$3.00 in the prior year. This year, the market expects an improvement in earnings ($1.02 versus -$1.65).
- YDKN, with its decline in revenue, slightly underperformed the industry average of 0.5%. Since the same quarter one year prior, revenues slightly dropped by 2.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.