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) -- Bbva Banco FrancesS.A (NYSE: BFR) 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, solid stock price performance, good cash flow from operations, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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- BFR's revenue growth has slightly outpaced the industry average of 3.9%. Since the same quarter one year prior, revenues slightly increased by 6.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, BFR's share price has jumped by 36.97%, 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, BFR 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 308.99% to $211.23 million when compared to the same quarter last year. In addition, BBVA BANCO FRANCES SA has also vastly surpassed the industry average cash flow growth rate of 29.32%.
- BBVA BANCO FRANCES SA's earnings per share declined by 37.5% 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, BBVA BANCO FRANCES SA increased its bottom line by earning $1.44 versus $1.29 in the prior year. This year, the market expects an improvement in earnings ($1.71 versus $1.44).
- The gross profit margin for BBVA BANCO FRANCES SA is rather high; currently it is at 67.03%. Regardless of BFR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 10.32% trails the industry average.