Enzon Pharmaceuticals Inc. Stock Downgraded (ENZN)
NEW YORK (TheStreet) -- Enzon Pharmaceuticals (Nasdaq:ENZN) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself. Highlights from the ratings report include:
- ENZN, with its decline in revenue, underperformed when compared the industry average of 7.2%. Since the same quarter one year prior, revenues fell by 30.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- ENZON PHARMACEUTICALS INC's earnings per share declined by 44.4% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, ENZON PHARMACEUTICALS INC continued to lose money by earning -$0.11 versus -$1.26 in the prior year.
- 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. When compared to other companies in the Biotechnology industry and the overall market, ENZON PHARMACEUTICALS INC's return on equity has significantly outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- The share price of ENZON PHARMACEUTICALS INC has not done very well: it is down 21.89% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Biotechnology industry. The net income has significantly decreased by 25.7% when compared to the same quarter one year ago, falling from -$5.62 million to -$7.07 million.
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