TSC Ratings' Updates: ArvinMeritor

Woori Finance Holdings(WF Quote) has been downgraded from hold to sell. Woori Finance Holdings a financial holding company, offers a range of banking and financial products and services in South Korea. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself.

WF's earnings per share declined by 46.9% in the most recent quarter compared with the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, WF reported lower earnings of $8.06 vs. $8.13 in the prior year. For the next year, the market is expecting a contraction of 9.9% in earnings ($7.26 vs. $8.06).

The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared with that of the S&P 500 and the commercial banks industry. The net income has significantly decreased by 46.9% when compared with the same quarter one year ago, falling from $688.01 million to $365.21 million.

Current return on equity is lower than its return on equity from the same quarter one year prior. This is a clear sign of weakness within the company. Compared with other companies in the commercial banks industry and the overall market on the basis of return on equity, WF has outperformed in comparison with the industry average, but has underperformed when compared with the S&P 500.