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"We rate BANCORP INC (TBBK) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, feeble growth in its earnings per share and deteriorating net income."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 46.84%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 33.33% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, TBBK is still more expensive than most of the other companies in its industry.
- BANCORP INC's earnings per share declined by 33.3% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, BANCORP INC reported lower earnings of $0.46 versus $0.50 in the prior year. For the next year, the market is expecting a contraction of 170.7% in earnings (-$0.33 versus $0.46).
- 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 451.0% when compared to the same quarter one year ago, falling from $4.79 million to -$16.81 million.
- The gross profit margin for BANCORP INC is currently very high, coming in at 90.55%. Regardless of TBBK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TBBK's net profit margin of -43.89% significantly underperformed when compared to the industry average.
- You can view the full analysis from the report here: TBBK Ratings Report