Credit Suisse Group Stock Upgraded (CS)
NEW YORK (
)
(NYSE:
) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, generally poor debt management and disappointing return on equity.
Highlights from the ratings report include:
- Net operating cash flow has significantly increased by 137.41% to $13,721.01 million when compared to the same quarter last year. In addition, CREDIT SUISSE GROUP has also modestly surpassed the industry average cash flow growth rate of 131.92%.
- 40.50% is the gross profit margin for CREDIT SUISSE GROUP which we consider to be strong. Regardless of CS'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 6.30% trails the industry average.
- CREDIT SUISSE GROUP's earnings per share declined by 36.5% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, CREDIT SUISSE GROUP reported lower earnings of $4.17 versus $4.82 in the prior year. For the next year, the market is expecting a contraction of 34.0% in earnings ($2.75 versus $4.17).
- The debt-to-equity ratio is very high at 10.64 and currently higher than the industry average, implying that there is very poor management of debt levels within the company.
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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 17% year to date as of the close of trading on Tuesday.
You can view the full
Credit Suisse Group Ratings Report
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-- Written by a member of TheStreet RatingsStaff
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