Gentium SpA Stock Downgraded (GENT)
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- GENT's very impressive revenue growth greatly exceeded the industry average of 5.7%. Since the same quarter one year prior, revenues leaped by 70.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- GENT's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, GENT has a quick ratio of 2.26, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for GENTIUM SPA -ADR is currently very high, coming in at 76.40%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, GENT's net profit margin of 3.30% significantly trails the industry average.
- GENTIUM SPA -ADR 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. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, GENTIUM SPA -ADR reported lower earnings of $0.23 versus $0.36 in the prior year. For the next year, the market is expecting a contraction of 133.9% in earnings (-$0.08 versus $0.23).
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. When compared to other companies in the Biotechnology industry and the overall market, GENTIUM SPA -ADR'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.
-- Written by a member of TheStreet Ratings Staff
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