TSC Ratings' Updates: Celgene

The following ratings changes were generated on Monday, Nov. 3.

We've upgraded biopharmaceutical company Celgene(CELG Quote) from sell to hold. Strengths include its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Revenue leaped by 67.7% over the same quarter one year prior, greatly exceeding the industry average of 17.3% and boosting EPS. Celgene has no debt to speak of, resulting in a debt-to-equity ratio of zero, a relatively favorable sign. The company also maintains a quick ratio of 6.08, which clearly demonstrates the ability to cover short-term cash needs. Celgene's gross profit margin is currently very high, coming in at 91.40%, but it has managed to decrease from the same period last year. The net profit margin of 23.30% trails the industry average. ...