NEW YORK ( TheStreet) -- Deutsche Bank (NYSE: DB) 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 unimpressive growth in net income, generally poor debt management and a generally disappointing performance in the stock itself. Highlights from the ratings report include:
- DEUTSCHE BANK AG 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 reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, DEUTSCHE BANK AG increased its bottom line by earning $5.55 versus $4.25 in the prior year. This year, the market expects an improvement in earnings ($7.31 versus $5.55).
- The debt-to-equity ratio is very high at 5.18 and currently higher than the industry average, implying that there is very poor management of debt levels within the company.
- 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 Capital Markets industry. The net income has significantly decreased by 99.9% when compared to the same quarter one year ago, falling from $740.73 million to $1.02 million.
-- Written by a member of TheStreet RatingsStaff