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"We rate MAGYAR BANCORP INC (MGYR) 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 revenue growth, good cash flow from operations, expanding profit margins, impressive record of earnings per share growth and increase in stock price during the past year. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- MGYR's revenue growth has slightly outpaced the industry average of 5.2%. Since the same quarter one year prior, revenues slightly increased by 0.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Net operating cash flow has significantly increased by 446.47% to $3.44 million when compared to the same quarter last year. In addition, MAGYAR BANCORP INC has also vastly surpassed the industry average cash flow growth rate of -57.48%.
- The gross profit margin for MAGYAR BANCORP INC is currently very high, coming in at 76.91%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, MGYR's net profit margin of 3.38% significantly trails the industry average.
- MAGYAR BANCORP INC reported significant earnings per share improvement 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 year. During the past fiscal year, MAGYAR BANCORP INC increased its bottom line by earning $0.09 versus $0.04 in the prior year.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: MGYR Ratings Report