Volcano Corporation Stock Upgraded (VOLC)
NEW YORK (TheStreet) -- Volcano Corporation (Nasdaq:VOLC) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and compelling growth in net income. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 8.3%. Since the same quarter one year prior, revenues rose by 14.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Although VOLC's debt-to-equity ratio of 0.28 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 5.07, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for VOLCANO CORP is currently very high, coming in at 72.90%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 31.70% significantly outperformed against the industry average.
- Net operating cash flow has increased to $23.04 million or 17.53% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -26.46%.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 1805.6% when compared to the same quarter one year prior, rising from -$1.73 million to $29.42 million.
-- Written by a member of TheStreet RatingsStaff
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV