Alexion Pharmaceuticals Inc. Stock Buy Recommendation Reiterated (ALXN)
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- The revenue growth greatly exceeded the industry average of 7.3%. Since the same quarter one year prior, revenues rose by 47.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- ALXN's debt-to-equity ratio is very low at 0.13 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.90, which clearly demonstrates the ability to cover short-term cash needs.
- ALEXION PHARMACEUTICALS INC reported flat earnings per share in the most recent quarter. 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, ALEXION PHARMACEUTICALS INC increased its bottom line by earning $0.91 versus $0.53 in the prior year. This year, the market expects an improvement in earnings ($1.90 versus $0.91).
- Compared to its closing price of one year ago, ALXN's share price has jumped by 69.05%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- Net operating cash flow has increased to $101.53 million or 29.03% when compared to the same quarter last year. Despite an increase in cash flow, ALEXION PHARMACEUTICALS INC's average is still marginally south of the industry average growth rate of 38.88%.
--Written by a member of TheStreet Ratings Staff. FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free Download Now
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