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 (Nasdaq: UBOH) 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, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and weak operating cash flow.
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- Compared to its closing price of one year ago, UBOH's share price has jumped by 33.52%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- The gross profit margin for UNITED BANCSHARES INC/OH is currently very high, coming in at 95.86%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 16.99% is above that of the industry average.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 12.2%. Since the same quarter one year prior, revenues slightly dropped by 5.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Commercial Banks industry. The net income has decreased by 8.2% when compared to the same quarter one year ago, dropping from $1.18 million to $1.08 million.
- Net operating cash flow has significantly decreased to -$1.90 million or 156.62% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.