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NEW YORK (TheStreet) -- Chemung Financial (CHMG) 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 CHEMUNG FINANCIAL CORP (CHMG) 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 revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- CHMG's revenue growth has slightly outpaced the industry average of 5.2%. Since the same quarter one year prior, revenues slightly increased by 8.7%. 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.
- Net operating cash flow has increased to $4.85 million or 26.20% when compared to the same quarter last year. In addition, CHEMUNG FINANCIAL CORP has also vastly surpassed the industry average cash flow growth rate of -71.72%.
- The gross profit margin for CHEMUNG FINANCIAL CORP is currently very high, coming in at 91.80%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -1.73% is in-line with the industry average.
- CHEMUNG FINANCIAL CORP 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, CHEMUNG FINANCIAL CORP reported lower earnings of $1.88 versus $2.38 in the prior year. For the next year, the market is expecting a contraction of 6.9% in earnings ($1.75 versus $1.88).
- 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 114.6% when compared to the same quarter one year ago, falling from $2.18 million to -$0.32 million.
- You can view the full analysis from the report here: CHMG Ratings Report