Biogen Idec Inc Stock Buy Recommendation Reiterated (BIIB)

Editor's Note: 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.

NEW YORK (TheStreet) -- Biogen Idec (Nasdaq:BIIB) has been reiterated by TheStreet Ratings as a buy with a ratings score of A- . The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

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Highlights from the ratings report include:

• BIIB's revenue growth has slightly outpaced the industry average of 4.7%. Since the same quarter one year prior, revenues slightly increased by 6.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
• BIIB's debt-to-equity ratio is very low at 0.16 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, BIIB has a quick ratio of 1.61, which demonstrates the ability of the company to cover short-term liquidity needs.
• The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Biotechnology industry and the overall market, BIOGEN IDEC INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
• Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 37.50% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BIIB should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
• Net operating cash flow has slightly increased to $507.91 million or 7.15% when compared to the same quarter last year. In addition, BIOGEN IDEC INC has also vastly surpassed the industry average cash flow growth rate of -55.98%.

Biogen Idec Inc. discovers, develops, manufactures, and markets therapies for the treatment of neurodegenerative diseases, hemophilia, and autoimmune disorders in the United States and internationally. Biogen Idec has a market cap of $38.42 billion and is part of the health care sector and drugs industry. The company has a P/E ratio of 28.2, above the S&P 500 P/E ratio of 17.7. Shares are up 11.1% year to date as of the close of trading on Friday.

You can view the full Biogen Idec Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

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