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NEW YORK (TheStreet) -- Royal Bancshares/PA (RBPAA) has been upgraded by TheStreet Ratings from Sell to Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ROYAL BANCSHARES/PA (RBPAA) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 12.9%. Since the same quarter one year prior, revenues slightly increased by 4.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 140.00% and other important driving factors, this stock has surged by 123.17% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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 company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Commercial Banks industry and the overall market, ROYAL BANCSHARES/PA'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 $3.15 million or 56.82% when compared to the same quarter last year. Despite a decrease in cash flow ROYAL BANCSHARES/PA is still fairing well by exceeding its industry average cash flow growth rate of -97.21%.
- You can view the full analysis from the report here: RBPAA Ratings Report
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