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"We rate CHEMUNG FINANCIAL CORP (CHMG) a BUY. This is driven by multiple strengths, 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 robust revenue growth, increase in net income, expanding profit margins, growth in earnings per share and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 0.1%. Since the same quarter one year prior, revenues rose by 42.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 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 228.8% when compared to the same quarter one year prior, rising from $1.49 million to $4.88 million.
- The gross profit margin for CHEMUNG FINANCIAL CORP is currently very high, coming in at 92.55%. 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 19.28% trails the industry average.
- CHEMUNG FINANCIAL CORP 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, CHEMUNG FINANCIAL CORP reported lower earnings of $1.82 versus $1.88 in the prior year. This year, the market expects an improvement in earnings ($2.05 versus $1.82).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Commercial Banks industry and the overall market, CHEMUNG FINANCIAL CORP's return on equity is below that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: CHMG Ratings Report
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