BioLase Technology Stock Downgraded (BLTI)
NEW YORK (TheStreet) -- BioLase Technology (Nasdaq:BLTI) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and generally disappointing historical performance in the stock itself. Highlights from the ratings report include:
- 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 Health Care Equipment & Supplies industry. The net income has significantly decreased by 1266.7% when compared to the same quarter one year ago, falling from $0.17 million to -$2.03 million.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 50.30%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 721.87% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- 43.20% is the gross profit margin for BIOLASE TECHNOLOGY INC which we consider to be strong. Regardless of BLTI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BLTI's net profit margin of -15.40% significantly underperformed when compared to the industry average.
- BLTI has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.75 is somewhat weak and could be cause for future problems.
- Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, BIOLASE TECHNOLOGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
-- Written by a member of TheStreet Ratings Staff
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