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NEW YORK (TheStreet) -- California First National Bancorp (CFNB) 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 CALIF FIRST NATIONAL BANCORP (CFNB) a BUY. This is driven by a few notable strengths, 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite its growing revenue, the company underperformed as compared with the industry average of 11.3%. Since the same quarter one year prior, revenues slightly increased by 2.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Although CFNB's debt-to-equity ratio of 0.08 is very low, it is currently higher than that of the industry average.
- Net operating cash flow has significantly increased by 207.30% to $1.70 million when compared to the same quarter last year. In addition, CALIF FIRST NATIONAL BANCORP has also vastly surpassed the industry average cash flow growth rate of 0.71%.
- The gross profit margin for CALIF FIRST NATIONAL BANCORP is currently very high, coming in at 85.00%. Regardless of CFNB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CFNB's net profit margin of 29.12% significantly outperformed against the industry.
- You can view the full analysis from the report here: CFNB Ratings Report