NEW YORK ( TheStreet) -- US Global Investors (Nasdaq: GROW) 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.
-- Written by a member of TheStreet Ratings Staff