Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. NEW YORK ( TheStreet) -- United Financial Bancorp (Nasdaq: UBNK) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, expanding profit margins, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
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- The revenue growth significantly trails the industry average of 106.3%. Since the same quarter one year prior, revenues rose by 35.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Net operating cash flow has significantly increased by 183.79% to $7.94 million when compared to the same quarter last year. In addition, UNITED FINANCIAL BANCORP INC has also vastly surpassed the industry average cash flow growth rate of -350.04%.
- The gross profit margin for UNITED FINANCIAL BANCORP INC is currently very high, coming in at 82.15%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 15.24% trails the industry average.
- UNITED FINANCIAL BANCORP INC has improved earnings per share by 17.6% 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, UNITED FINANCIAL BANCORP INC reported lower earnings of $0.28 versus $0.74 in the prior year. This year, the market expects an improvement in earnings ($1.00 versus $0.28).
- 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 56.8% when compared to the same quarter one year prior, rising from $2.58 million to $4.05 million.