- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Commercial Banks industry and the overall market, ROYAL BANK OF SCOTLAND GROUP's return on equity significantly trails that of both the industry average and the S&P 500.
- ROYAL BANK OF SCOTLAND GROUP reported significant earnings per share improvement in the most recent quarter compared to 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, ROYAL BANK OF SCOTLAND GROUP reported poor results of -$2.68 versus -$1.72 in the prior year. This year, the market expects an improvement in earnings ($57.08 versus -$2.68).
- The gross profit margin for ROYAL BANK OF SCOTLAND GROUP is currently very high, coming in at 77.45%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 19.55% trails the industry average.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 194.1% when compared to the same quarter one year prior, rising from $720.15 million to $2,117.73 million.
- Compared to where it was a year ago today, the stock is now trading at a higher level, and has traded in line with the S&P 500. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
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. The Banking industry as a whole closed the day down 0.5% versus the S&P 500, which was down 0.7%. Laggards within the Banking industry included Broadway Financial ( BYFC), down 3.7%, Emclaire Financial ( EMCF), down 5.7%, DNB Financial ( DNBF), down 6.8%, Georgetown Bancorp ( GTWN), down 4.4% and United Security ( UBFO), down 1.5%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today: Royal Bank of Scotland Group (The ( RBS) is one of the companies that pushed the Banking industry lower today. Royal Bank of Scotland Group (The was down $0.22 (2.0%) to $11.02 on light volume. Throughout the day, 469,931 shares of Royal Bank of Scotland Group (The exchanged hands as compared to its average daily volume of 756,400 shares. The stock ranged in price between $11.01-$11.16 after having opened the day at $11.11 as compared to the previous trading day's close of $11.24. The Royal Bank of Scotland Group plc, through its subsidiaries, provides banking and financial products and services to personal, commercial, corporate, and institutional customers worldwide. Royal Bank of Scotland Group (The has a market cap of $64.5 billion and is part of the financial sector. Shares are down 0.8% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Royal Bank of Scotland Group (The a buy, 1 analyst rates it a sell, and none rate it a hold. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings rates Royal Bank of Scotland Group (The as a sell. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity. Highlights from TheStreet Ratings analysis on RBS go as follows: