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NEW YORK (TheStreet) -- Eastern Virginia Bankshares (EVBS) 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 EASTERN VA BANKSHARES INC (EVBS) 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 compelling growth in net income, good cash flow from operations, expanding profit margins, impressive record of earnings per share growth and notable return on equity. 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 net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 119.3% when compared to the same quarter one year prior, rising from -$6.65 million to $1.28 million.
- Net operating cash flow has significantly increased by 145.30% to $3.90 million when compared to the same quarter last year. In addition, EASTERN VA BANKSHARES INC has also vastly surpassed the industry average cash flow growth rate of -72.37%.
- The gross profit margin for EASTERN VA BANKSHARES INC is currently very high, coming in at 90.41%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, EVBS's net profit margin of 10.96% significantly trails the industry average.
- EASTERN VA BANKSHARES INC reported significant earnings per share improvement 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, EASTERN VA BANKSHARES INC swung to a loss, reporting -$0.33 versus $0.32 in the prior year. This year, the market expects an improvement in earnings ($0.29 versus -$0.33).
- EVBS, with its decline in revenue, slightly underperformed the industry average of 3.8%. Since the same quarter one year prior, revenues slightly dropped by 5.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full analysis from the report here: EVBS Ratings Report