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) -- Capital City Bank Group (Nasdaq: CCBG) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, expanding profit margins, impressive record of earnings per share growth, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
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- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 148.8% when compared to the same quarter one year prior, rising from -$1.73 million to $0.84 million.
- The gross profit margin for CAPITAL CITY BK GROUP INC is currently very high, coming in at 92.61%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, CCBG's net profit margin of 2.44% significantly trails the industry average.
- CAPITAL CITY BK GROUP INC reported significant earnings per share improvement 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, CAPITAL CITY BK GROUP INC reported lower earnings of $0.01 versus $0.29 in the prior year. This year, the market expects an improvement in earnings ($0.22 versus $0.01).
- CCBG, with its decline in revenue, slightly underperformed the industry average of 4.0%. Since the same quarter one year prior, revenues slightly dropped by 4.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, CAPITAL CITY BK GROUP INC underperformed against that of the industry average and is significantly less than that of the S&P 500.