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NEW YORK (TheStreet) -- Hometrust Bancshares (HTBI) 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 HOMETRUST BANCSHARES INC (HTBI) a BUY. This is driven by some important positives, 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 and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 4.6%. Since the same quarter one year prior, revenues rose by 32.3%. 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.
- HOMETRUST BANCSHARES INC's earnings per share declined by 29.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HOMETRUST BANCSHARES INC increased its bottom line by earning $0.54 versus $0.45 in the prior year. This year, the market expects an improvement in earnings ($0.60 versus $0.54).
- The gross profit margin for HOMETRUST BANCSHARES INC is currently very high, coming in at 95.52%. Regardless of HTBI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, HTBI's net profit margin of 9.96% is significantly lower than the industry average.
- Net operating cash flow has significantly decreased to -$2.94 million or 149.87% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- In its most recent trading session, HTBI has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Despite the decline in its share price over the last year, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry. We feel, however, that other strengths this company displays compensate for this.
- You can view the full analysis from the report here: HTBI Ratings Report