NEW YORK (TheStreet) -- Janus Capital Group (JNS) was falling 7.2% to $12.06 on Thursday after the company announced that its outflows reached the worst levels in years.
Janus has had issues with reversing the trend of customers' withdrawals as customers migrate away from its equity funds, which have had uneven performances. The company revealed that long-term net outflows of $6.2 billion partially offset market gains of $13.4 billion.
Janus also reported that its fourth-quarter profit rose 23% thanks to higher investment management fees, which rose to $208 million from $193.8 million in the same quarter a year earlier. Janus's total assets were $173.9 billion on Dec. 31, up from $166.7 billion on Sept. 30.
TheStreet Ratings team rates JANUS CAPITAL GROUP INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about its recommendation:
"We rate JANUS CAPITAL GROUP INC (JNS) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, solid stock price performance, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- JNS's revenue growth has slightly outpaced the industry average of 1.3%. Since the same quarter one year prior, revenues slightly increased by 4.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 32.67% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, JNS 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 exceeded that of the S&P 500 and greatly outperformed compared to the Capital Markets industry average. The net income increased by 29.9% when compared to the same quarter one year prior, rising from $25.10 million to $32.60 million.
- Net operating cash flow has slightly increased to $78.30 million or 3.98% when compared to the same quarter last year. Despite an increase in cash flow of 3.98%, JANUS CAPITAL GROUP INC is still growing at a significantly lower rate than the industry average of 460.58%.
- You can view the full analysis from the report here: JNS Ratings Report