NEW YORK (
) 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, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- 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 Insurance industry. The net income has significantly decreased by 328.6% when compared to the same quarter one year ago, falling from $42.00 million to -$96.00 million.
- 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. Compared to other companies in the Insurance industry and the overall market on the basis of return on equity, GENWORTH FINANCIAL INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
- The gross profit margin for GENWORTH FINANCIAL INC is currently extremely low, coming in at 1.90%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -3.60% is significantly below that of the industry average.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 45.85%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 350.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- Despite currently having a low debt-to-equity ratio of 0.59, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further.
Genworth Financial, Inc., a financial security company, provides insurance, wealth management, investment, and financial solutions in the United States and internationally. The company operates in three segments: Retirement and Protection, International, and U.S. Mortgage Insurance. The company has a P/E ratio of 63.2, above the S&P 500 P/E ratio of 17.7. Genworth Financial has a market cap of $3.1 billion and is part of the
industry. Shares are down 52.4% year to date as of the close of trading on Monday.
You can view the full
or get investment ideas from our