Citigroup Inc's Buy Recommendation Supported

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

NEW YORK ( TheStreet) -- Citigroup (NYSE: C) has been reiterated by TheStreet Ratings as a buy with a ratings score of B. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, attractive valuation levels, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • The strong earnings growth this company has enjoyed -- up -- has apparently played a role in driving up its share price by a solid 26.71%. In addition, the rise in the general market has likely contributed to this stock's strong performance during this past year.Regarding the stock's future course, although almost any stock can fall in a broad market decline, C should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Diversified Financial Services industry. The net income increased by 589.5% when compared to the same quarter one year prior, rising from $468.00 million to $3,227.00 million.
  • 36.46% is the gross profit margin for CITIGROUP INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 14.78% is above that of the industry average.
  • Net operating cash flow has significantly increased by 315.30% to $14,249.00 million when compared to the same quarter last year. In addition, CITIGROUP INC has also vastly surpassed the industry average cash flow growth rate of 17.84%.

Citigroup, Inc., a diversified financial services holding company, provides a range of financial products and services to consumers, corporations, governments, and institutions worldwide. The company operates through two segments, Citicorp and Citi Holdings. Citigroup has a market cap of $163.2 billion and is part of the financial sector and banking industry. The company has a P/E ratio of 13.00, below the S&P 500 P/E ratio of 18.00. Shares are up 4% year to date as of the close of trading on Tuesday.

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

--Written by a member of TheStreet Ratings Staff.

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