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NEW YORK (TheStreet) -- Seacoast Banking Corporation of Florida (SBCF) 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 SEACOAST BANKING CORP/FL (SBCF) 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, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- SBCF's revenue growth has slightly outpaced the industry average of 1.7%. Since the same quarter one year prior, revenues slightly increased by 1.8%. 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.
- The gross profit margin for SEACOAST BANKING CORP/FL is currently very high, coming in at 100.65%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, SBCF's net profit margin of 11.99% significantly trails the industry average.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- SEACOAST BANKING CORP/FL has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, SEACOAST BANKING CORP/FL turned its bottom line around by earning $2.48 versus -$0.25 in the prior year. For the next year, the market is expecting a contraction of 81.0% in earnings ($0.47 versus $2.48).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Commercial Banks industry. The net income has significantly decreased by 93.4% when compared to the same quarter one year ago, falling from $45.14 million to $3.00 million.
- You can view the full analysis from the report here: SBCF Ratings Report