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) -- First Citizens BancShares Inc (DE (Nasdaq: FCNCA) 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, increase in net income and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow.
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- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Commercial Banks industry average. The net income increased by 16.8% when compared to the same quarter one year prior, going from $37.58 million to $43.91 million.
- FCNCA, with its decline in revenue, slightly underperformed the industry average of 3.9%. Since the same quarter one year prior, revenues fell by 13.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Commercial Banks industry and the overall market, FIRST CITIZENS BANCSH's return on equity is below that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to $74.01 million or 52.14% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.