NEW YORK (
) has been downgraded by TheStreet Ratings from buy to hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
Highlights from the ratings report include:
- GROW has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 7.52, which clearly demonstrates the ability to cover short-term cash needs.
- U S GLOBAL INVESTORS INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, U S GLOBAL INVESTORS INC increased its bottom line by earning $0.51 versus $0.35 in the prior year.
- The gross profit margin for U S GLOBAL INVESTORS INC is rather low; currently it is at 15.60%. It has decreased significantly from the same period last year. Along with this, the net profit margin of 8.80% trails that of the industry average.
U.S. Global Investors, Inc. is a publicly owned investment manager. The firm primarily provides its services to investment companies. It also provides its services to pooled investment vehicles. The firm manages equity and fixed income mutual funds for its clients. The company has a P/E ratio of 23.9, equal to the average financial services industry P/E ratio and above the S&P 500 P/E ratio of 17.7. US Global Investors has a market cap of $67.2 million and is part of the
industry. Shares are down 15.9% year to date as of the close of trading on Friday.
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-- Written by a member of TheStreet Ratings Staff