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NEW YORK (TheStreet) -- Stewardship Financial (SSFN) has been downgraded by TheStreet Ratings from Buy to Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate STEWARDSHIP FINANCIAL CORP (SSFN) 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 impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- STEWARDSHIP FINANCIAL CORP reported significant earnings per share improvement 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 two years. During the past fiscal year, STEWARDSHIP FINANCIAL CORP increased its bottom line by earning $0.31 versus $0.04 in the prior year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 57.5% when compared to the same quarter one year prior, rising from $0.46 million to $0.73 million.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 9.6%. Since the same quarter one year prior, revenues slightly dropped by 8.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- Net operating cash flow has significantly decreased to $1.21 million or 70.18% when compared to the same quarter last year. Despite a decrease in cash flow STEWARDSHIP FINANCIAL CORP is still fairing well by exceeding its industry average cash flow growth rate of -89.07%.
- SSFN has underperformed the S&P 500 Index, declining 13.54% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
- You can view the full analysis from the report here: SSFN Ratings Report