NEW YORK (TheStreet) -- BioDelivery Sciences International (Nasdaq:BDSI) 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 notable return on equity. 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:
- BDSI's very impressive revenue growth greatly exceeded the industry average of 10.2%. Since the same quarter one year prior, revenues leaped by 13028.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- BDSI 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. To add to this, BDSI has a quick ratio of 1.62, which demonstrates the ability of the company to cover short-term liquidity needs.
- BIODELIVERY SCIENCES INTL 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, BIODELIVERY SCIENCES INTL reported poor results of -$0.85 versus -$0.58 in the prior year. This year, the market expects an improvement in earnings ($0.50 versus -$0.85).
- BDSI has underperformed the S&P 500 Index, declining 12.44% from its price level of one year ago. 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.
-- Written by a member of TheStreet Ratings Staff
TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
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