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"We rate GAZIT GLOBE (GZT) 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 and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The gross profit margin for GAZIT GLOBE is rather high; currently it is at 52.64%. Regardless of GZT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GZT's net profit margin of -2.60% significantly underperformed when compared to the industry average.
- 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. In comparison to the other companies in the Real Estate Management & Development industry and the overall market, GAZIT GLOBE's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Management & Development industry. The net income has significantly decreased by 110.8% when compared to the same quarter one year ago, falling from $90.73 million to -$9.77 million.
- You can view the full analysis from the report here: GZT Ratings Report