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NEW YORK (TheStreet) -- National Bank Hldgs (NBHC) has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate NATIONAL BANK HLDGS CORP (NBHC) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its 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 lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Net operating cash flow has significantly increased by 176.12% to $12.93 million when compared to the same quarter last year. In addition, NATIONAL BANK HLDGS CORP has also vastly surpassed the industry average cash flow growth rate of -97.50%.
- NATIONAL BANK HLDGS CORP's earnings per share declined by 16.7% 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, NATIONAL BANK HLDGS CORP turned its bottom line around by earning $0.14 versus -$0.01 in the prior year. This year, the market expects an improvement in earnings ($0.29 versus $0.14).
- NBHC, with its decline in revenue, slightly underperformed the industry average of 12.8%. Since the same quarter one year prior, revenues fell by 13.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The gross profit margin for NATIONAL BANK HLDGS CORP is currently very high, coming in at 89.12%. Regardless of NBHC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, NBHC's net profit margin of 4.42% is significantly lower than the industry average.
- 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, NATIONAL BANK HLDGS CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
- You can view the full analysis from the report here: NBHC Ratings Report