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NEW YORK (TheStreet) -- First Federal of Northern Michigan Bancorp (FFNM) 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 FIRST FED NOR MICH BANCORP (FFNM) a BUY. This is driven by multiple 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, compelling growth in net income, attractive valuation levels, expanding profit margins and impressive record of earnings per share growth. 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:
- The revenue growth came in higher than the industry average of 17.6%. Since the same quarter one year prior, revenues rose by 10.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Thrifts & Mortgage Finance industry. The net income increased by 782.0% when compared to the same quarter one year prior, rising from $0.18 million to $1.61 million.
- The gross profit margin for FIRST FED NOR MICH BANCORP is currently very high, coming in at 81.14%. Regardless of FFNM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, FFNM's net profit margin of 57.74% significantly outperformed against the industry.
- FIRST FED NOR MICH BANCORP 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 year. During the past fiscal year, FIRST FED NOR MICH BANCORP turned its bottom line around by earning $0.01 versus -$0.07 in the prior year.
- You can view the full analysis from the report here: FFNM Ratings Report