Vical Incorporated Stock Upgraded (VICL)

NEW YORK (TheStreet) -- Vical Incorporated (Nasdaq:VICL) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and compelling growth in net income. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:

• VICL's very impressive revenue growth greatly exceeded the industry average of 4.5%. Since the same quarter one year prior, revenues leaped by 1665.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
• VICL 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.
• The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Biotechnology industry and the overall market, VICAL 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.
• VICAL INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, VICAL INC continued to lose money by earning -$0.11 versus -$0.51 in the prior year. For the next year, the market is expecting a contraction of 163.6% in earnings (-$0.29 versus -$0.11).
• VICL has underperformed the S&P 500 Index, declining 18.64% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.

.

Vical Incorporated engages in the research and development of biopharmaceutical products based on its deoxyribonucleic acid (DNA) delivery technologies for the prevention and treatment of serious or life-threatening diseases. Vical has a market cap of $262 million and is part of the health care sector and drugs industry. Shares are down 29.7% year to date as of the close of trading on Thursday.

You can view the full Vical Ratings Report or get investment ideas from our investment research center.
-- Written by a member of TheStreet RatingsStaff

For more information on Vical Incorporated click any of the following:

• Vical Incorporated Stock Price

• Vical Incorporated Analyst Ratings

• Vical Incorporated Key Stats & Profile

• Vical Incorporated Earnings

• Vical Incorporated Ratio Comparison

• Vical Incorporated Growth Rates

• Vical Incorporated Balance Sheet

• Vical Incorporated Cash Flow

• Vical Incorporated Income Statement