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) -- EverBank Financial (NYSE: EVER) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, revenue growth and attractive valuation levels. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.
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- EVERBANK FINANCIAL CORP has improved earnings per share by 31.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, EVERBANK FINANCIAL CORP increased its bottom line by earning $0.54 versus $0.44 in the prior year. This year, the market expects an improvement in earnings ($1.15 versus $0.54).
- The revenue growth significantly trails the industry average of 111.2%. Since the same quarter one year prior, revenues slightly increased by 5.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The gross profit margin for EVERBANK FINANCIAL CORP is currently very high, coming in at 83.47%. Regardless of EVER's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, EVER's net profit margin of 11.37% is significantly lower than the industry average.
- 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 49.5% when compared to the same quarter one year prior, rising from $22.18 million to $33.15 million.
- In its most recent trading session, EVER has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.