Why Credit Suisse (CS) Stock is Down Today

NEW YORK (TheStreet) -- Shares of Credit Suisse Group (CS) are down 0.34 % to $32.72 today.

The Swiss bank increased the funds it set aside to settle a U.S. tax dispute and avoid prosecution for helping wealthy Americans hide money to avoid taxes.

The move may mean it's close to a settlement. The bank set aside an additional $480 million.

The bank lowered its fourth quarter 2013 results and reported a net loss for the quarter.

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TheStreet Ratings team rates CREDIT SUISSE GROUP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate CREDIT SUISSE GROUP (CS) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, solid stock price performance and increase in net income. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • 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. When compared to other companies in the Capital Markets industry and the overall market, CREDIT SUISSE GROUP's return on equity is below that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$3,698.89 million or 118.25% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • You can view the full analysis from the report here: CS Ratings Report

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