NEW YORK ( TheStreet) -- Woori Finance Holdings (NYSE: WF) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and weak operating cash flow.

Highlights from the ratings report include:
  • 37.50% is the gross profit margin for WOORI FINANCE HOLDINGS CO which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, WF's net profit margin of 4.00% significantly trails the industry average.
  • 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.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Commercial Banks industry. The net income increased by 1.4% when compared to the same quarter one year prior, going from $141.95 million to $143.90 million.
  • Net operating cash flow has significantly decreased to -$2,247.72 million or 447.61% when compared to the same quarter last year. Despite a decrease in cash flow of 447.61%, WOORI FINANCE HOLDINGS CO is still significantly exceeding the industry average of -690.60%.
  • WF has underperformed the S&P 500 Index, declining 7.05% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

Woori Finance Holdings Co., Ltd., through its subsidiaries, provides financial product and services in Korea. The company has a P/E ratio of 11.3, above the average banking industry P/E ratio of 9.5 and below the S&P 500 P/E ratio of 16.8. Woori Finance has a market cap of $11 billion and is part of the financial sector and banking industry. Shares are up 2% year to date as of the close of trading on Monday.

You can view the full Woori Finance Ratings Report or get investment ideas from our investment research center.