NEW YORK (TheStreet) -- Greenhill & Co. Inc.
(GHL - Get Report) is trading higher 1.29% to $48.69 on Wednesday.
The independent investment bank was upgraded to "neutral' from "reduce" at Nomura Holdings (NMR - Get Report).
The firm said the ratings change was the result of improvement in the backlog and the company's offering of a 4% dividend yield.
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- GREENHILL & CO INC has improved earnings per share by 6.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, GREENHILL & CO INC increased its bottom line by earning $1.56 versus $1.38 in the prior year. This year, the market expects an improvement in earnings ($1.91 versus $1.56).
- 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. Compared to other companies in the Capital Markets industry and the overall market, GREENHILL & CO INC's return on equity exceeds that of both the industry average and the S&P 500.
- GHL, with its decline in revenue, slightly underperformed the industry average of 7.7%. Since the same quarter one year prior, revenues fell by 17.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Capital Markets industry. The net income increased by 4.3% when compared to the same quarter one year prior, going from $15.13 million to $15.78 million.
- The gross profit margin for GREENHILL & CO INC is currently lower than what is desirable, coming in at 29.15%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 20.67% is above that of the industry average.
- You can view the full analysis from the report here: GHL Ratings Report