Rating Change #3
Medivation Inc (MDVN) 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, solid stock price performance and increase in net income. However, as a counter to these strengths, we also find weaknesses including poor profit margins and generally poor debt management.
Highlights from the ratings report include:
- MDVN's very impressive revenue growth greatly exceeded the industry average of 5.2%. Since the same quarter one year prior, revenues leaped by 150.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 104.16% and other important driving factors, this stock has surged by 245.50% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- MEDIVATION INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MEDIVATION INC reported poor results of -$1.11 versus -$0.99 in the prior year. This year, the market expects an improvement in earnings (-$0.45 versus -$1.11).
- The debt-to-equity ratio is very high at 2.32 and currently higher than the industry average, implying that there is very poor management of debt levels within the company. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 3.57, which shows the ability to cover short-term cash needs.
- The gross profit margin for MEDIVATION INC is currently extremely low, coming in at 3.00%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, MDVN's net profit margin of 1.20% is significantly lower than the same period one year prior.
Medivation, Inc., a biopharmaceutical company, focuses on developing novel small molecule drugs for the treatment of serious diseases in the United States and Europe. Medivation has a market cap of $2.8 billion and is part of the health care sector and drugs industry. Shares are up 70.8% year to date as of the close of trading on Wednesday.You can view the full Medivation Ratings Report or get investment ideas from our investment research center.