Rating Change #5
Harvard Bioscience Inc
has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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Highlights from the ratings report include:
- HBIO's debt-to-equity ratio is very low at 0.15 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 3.56, which clearly demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has significantly increased by 106.85% to $2.50 million when compared to the same quarter last year. In addition, HARVARD BIOSCIENCE INC has also vastly surpassed the industry average cash flow growth rate of 10.87%.
- 47.10% is the gross profit margin for HARVARD BIOSCIENCE INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -0.50% is in-line with the industry average.
- This stock has managed to rise its share value by 15.34% over the past twelve months. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- HBIO, with its decline in revenue, slightly underperformed the industry average of 1.6%. Since the same quarter one year prior, revenues slightly dropped by 1.0%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
Harvard Bioscience, Inc. develops, manufactures, and markets apparatus and scientific instruments used in life science research in pharmaceutical and biotechnology companies, universities, and government laboratories in the United States and internationally. The company has a P/E ratio of 61.3, above the S&P 500 P/E ratio of 17.7. Harvard Bioscience has a market cap of $123.6 million and is part of the health care sector and health services industry. Shares are down 2.1% year to date as of the close of trading on Wednesday.
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