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NEW YORK (TheStreet) -- Salisbury Bancorp (SAL) 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 SALISBURY BANCORP INC (SAL) 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, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite its growing revenue, the company underperformed as compared with the industry average of 5.6%. Since the same quarter one year prior, revenues slightly increased by 1.5%. 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.
- The gross profit margin for SALISBURY BANCORP INC is currently very high, coming in at 85.59%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, SAL's net profit margin of 10.97% significantly trails the industry average.
- 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 decreased by 24.6% when compared to the same quarter one year ago, dropping from $1.02 million to $0.77 million.
- 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. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, SALISBURY BANCORP INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
- You can view the full analysis from the report here: SAL Ratings Report
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