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NEW YORK (TheStreet) -- SB Financial Group (SBFG) 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 SB FINANCIAL GROUP INC (SBFG) 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 solid stock price performance, growth in earnings per share and revenue growth. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- SB FINANCIAL GROUP INC has improved earnings per share by 10.7% 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, SB FINANCIAL GROUP INC increased its bottom line by earning $1.07 versus $0.99 in the prior year.
- The gross profit margin for SB FINANCIAL GROUP INC is currently very high, coming in at 88.93%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, SBFG's net profit margin of 14.93% significantly trails the industry average.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Commercial Banks industry and the overall market, SB FINANCIAL GROUP INC's return on equity is below that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to $2.87 million or 74.76% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, SB FINANCIAL GROUP INC has marginally lower results.
- You can view the full analysis from the report here: SBFG Ratings Report