Rating Change #5
KeyCorp (KEY - Get Report) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins 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 ratings report include:
- The gross profit margin for KEYCORP is currently very high, coming in at 85.00%. Regardless of KEY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, KEY's net profit margin of 17.30% compares favorably to the industry average.
- KEYCORP 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, KEYCORP increased its bottom line by earning $0.92 versus $0.47 in the prior year. For the next year, the market is expecting a contraction of 16.3% in earnings ($0.77 versus $0.92).
- KEY, with its decline in revenue, slightly underperformed the industry average of 3.0%. Since the same quarter one year prior, revenues slightly dropped by 5.0%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
- 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, KEYCORP's return on equity is below that of both the industry average and the S&P 500.
- The change in net income 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 has decreased by 23.9% when compared to the same quarter one year ago, dropping from $263.00 million to $200.00 million.
KeyCorp operates as a holding company for KeyBank National Association that provides various banking services in the United States. The company has a P/E ratio of 8.7, below the average banking industry P/E ratio of 9.4 and below the S&P 500 P/E ratio of 17.7. KeyCorp has a market cap of $7.77 billion and is part of the financial sector and banking industry. Shares are up 2.9% year to date as of the close of trading on Friday.You can view the full KeyCorp Ratings Report or get investment ideas from our investment research center.