Credit Suisse Group Stock Downgraded (CS)
NEW YORK (
)
(NYSE:
) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally weak debt management, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 40.33%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 188.75% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Capital Markets industry. The net income has significantly decreased by 170.8% when compared to the same quarter one year ago, falling from $1,101.02 million to -$779.09 million.
- The debt-to-equity ratio is very high at 10.85 and currently higher than the industry average, implying that there is very poor management of debt levels within the company.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Capital Markets industry and the overall market, CREDIT SUISSE GROUP's return on equity is below that of both the industry average and the S&P 500.
- The gross profit margin for CREDIT SUISSE GROUP is currently lower than what is desirable, coming in at 25.60%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -11.00% is significantly below that of the industry average.
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Credit Suisse Group AG, together with its subsidiaries, operates as a financial services company. The company operates in three segments: Private Banking, Investment Banking, and Asset Management. The company has a P/E ratio of 9.5, above the average banking industry P/E ratio of nine and below the S&P 500 P/E ratio of 17.7. Credit Suisse Group has a market cap of $31.78 billion and is part of the
sector and
industry. Shares are up 10% year to date as of the close of trading on Monday.
You can view the full
Credit Suisse Group Ratings Report
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-- Written by a member of TheStreet Ratings Staff
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