NEW YORK (TheStreet) -- Shares of Lloyds Banking Group LYG are up 1.38% to $5.16 after the bank said it's close to a settlement with regulators on fines following the manipulation of key benchmark interest rates such as Libor, Bloomberg reports.
TheStreet Ratings team rates LLOYDS BANKING GROUP PLC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate LLOYDS BANKING GROUP PLC (LYG) 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 expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The gross profit margin for LLOYDS BANKING GROUP PLC is rather high; currently it is at 62.62%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, LYG's net profit margin of 16.80% significantly trails the industry average.
- 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. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Commercial Banks industry and the overall market, LLOYDS BANKING GROUP PLC's return on equity significantly trails that of both the industry average and the S&P 500.
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Commercial Banks industry average. The net income has decreased by 17.4% when compared to the same quarter one year ago, dropping from $2,316.93 million to $1,914.29 million.
- You can view the full analysis from the report here: LYG Ratings Report