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) -- Sucampo Pharmaceuticals Inc. A (Nasdaq:SCMP) has been upgraded by TheStreet Ratings from sell to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, expanding profit margins, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
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- SCMP's very impressive revenue growth greatly exceeded the industry average of 7.4%. Since the same quarter one year prior, revenues leaped by 145.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 401.2% when compared to the same quarter one year prior, rising from $2.70 million to $13.53 million.
- 38.30% is the gross profit margin for SUCAMPO PHARMACEUTICALS INC which we consider to be strong. It has increased significantly from the same period last year. Along with this, the net profit margin of 38.81% significantly outperformed against the industry average.
- Net operating cash flow has significantly increased by 689.56% to $17.17 million when compared to the same quarter last year. In addition, SUCAMPO PHARMACEUTICALS INC has also vastly surpassed the industry average cash flow growth rate of -34.72%.
- SUCAMPO PHARMACEUTICALS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, SUCAMPO PHARMACEUTICALS INC turned its bottom line around by earning $0.11 versus -$0.43 in the prior year. For the next year, the market is expecting a contraction of 218.2% in earnings (-$0.13 versus $0.11).
-- Written by a member of TheStreet Ratings Staff
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. Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100% See his top picks for 14-days FREE.
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