Rating Change #2
Goldman Sachs Group Inc (GS) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- Net operating cash flow has significantly increased by 307.01% to $19,215.00 million when compared to the same quarter last year. Despite an increase in cash flow of 307.01%, GOLDMAN SACHS GROUP INC is still growing at a significantly lower rate than the industry average of 391.70%.
- 45.60% is the gross profit margin for GOLDMAN SACHS GROUP INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, GS's net profit margin of 12.60% compares favorably to the industry average.
- Despite the weak revenue results, GS has outperformed against the industry average of 43.4%. Since the same quarter one year prior, revenues fell by 22.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- GOLDMAN SACHS GROUP INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, GOLDMAN SACHS GROUP INC reported lower earnings of $4.41 versus $13.14 in the prior year. This year, the market expects an improvement in earnings ($11.35 versus $4.41).
- The change in net income from the same quarter one year ago has exceeded that of the Capital Markets industry average, but is less than that of the S&P 500. The net income has significantly decreased by 57.6% when compared to the same quarter one year ago, falling from $2,387.00 million to $1,013.00 million.
The Goldman Sachs Group, Inc., together with its subsidiaries, provides investment banking, securities, and investment management services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. The company has a P/E ratio of 26, above the average financial services industry P/E ratio of 24.1 and above the S&P 500 P/E ratio of 17.7. Goldman Sachs Group has a market cap of $53.6 billion and is part of the financial sector and financial services industry. Shares are up 27.3% year to date as of the close of trading on Thursday.You can view the full Goldman Sachs Group Ratings Report or get investment ideas from our investment research center.
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