Goldman Sachs Group Inc Stock Hold Recommendation Reiterated (GS)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

NEW YORK (TheStreet) -- Goldman Sachs Group (NYSE:GS) has been reiterated by TheStreet Ratings as a hold with a ratings score of C . The company's strengths can be seen in multiple areas, such as its attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself.

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Highlights from the ratings report include:

• 43.00% is the gross profit margin for GOLDMAN SACHS GROUP INC which we consider to be strong. Regardless of GS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 11.20% trails the industry average.
• Net operating cash flow has significantly decreased to $5,367.00 million or 50.09% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
• The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Capital Markets industry and the overall market, GOLDMAN SACHS GROUP INC's return on equity is below that of both the industry average and the S&P 500.

The Goldman Sachs Group, Inc. provides investment banking, securities, and investment management services, as well as a range of financial services to corporations, financial institutions, governments and high-net-worth individuals worldwide. The company has a P/E ratio of 15.2, above the average financial services industry P/E ratio of 14.9 and below the S&P 500 P/E ratio of 17.7. Goldman Sachs Group has a market cap of $50.42 billion and is part of the financial sector and financial services industry. Shares are up 16.4% year to date as of the close of trading on Monday.

You can view the full Goldman Sachs Group Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

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