NEW YORK (
) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.
Highlights from the ratings report include:
- WF's very impressive revenue growth greatly exceeded the industry average of 21.7%. Since the same quarter one year prior, revenues leaped by 71.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- WOORI FINANCE HOLDINGS CO reported significant earnings per share improvement 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 two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, WOORI FINANCE HOLDINGS CO increased its bottom line by earning $3.94 versus $3.17 in the prior year. This year, the market expects an improvement in earnings ($4.25 versus $3.94).
- 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 Commercial Banks industry and the overall market on the basis of return on equity, WOORI FINANCE HOLDINGS CO has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- WF's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 25.95%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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.
Woori Finance Holdings Co., Ltd., through its subsidiaries, provides various banking and financial products and services in Korea. The company has a P/E ratio of 6.3, above the average banking industry P/E ratio of 3.9 and below the S&P 500 P/E ratio of 17.7. Woori Finance has a market cap of $7.2 billion and is part of the
industry. Shares are down 31.7% year to date as of the close of trading on Tuesday.
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