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NEW YORK (TheStreet) -- Trustmark (TRMK - Get Report) 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 TRUSTMARK CORP (TRMK) 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 expanding profit margins, good cash flow from operations, increase in net income 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 gross profit margin for TRUSTMARK CORP is currently very high, coming in at 96.67%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.22% is above that of the industry average.
- Net operating cash flow has significantly increased by 1143.32% to $51.69 million when compared to the same quarter last year. In addition, TRUSTMARK CORP has also vastly surpassed the industry average cash flow growth rate of 296.03%.
- The net income growth from the same quarter one year ago has exceeded that of the Commercial Banks industry average, but is less than that of the S&P 500. The net income increased by 0.1% when compared to the same quarter one year prior, going from $28.04 million to $28.07 million.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 2.9%. Since the same quarter one year prior, revenues slightly dropped by 0.5%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
- TRUSTMARK CORP reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, TRUSTMARK CORP increased its bottom line by earning $1.84 versus $1.75 in the prior year. For the next year, the market is expecting a contraction of 10.3% in earnings ($1.65 versus $1.84).
- You can view the full analysis from the report here: TRMK Ratings Report