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NEW YORK (TheStreet) -- Amedisys (AMED) - Get Report has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMEDISYS INC (AMED) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Powered by its strong earnings growth of 109.05% and other important driving factors, this stock has surged by 54.91% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AMED should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Providers & Services industry. The net income increased by 109.3% when compared to the same quarter one year prior, rising from -$91.07 million to $8.44 million.
- 43.33% is the gross profit margin for AMEDISYS INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 2.81% is above that of the industry average.
- AMED's debt-to-equity ratio is very low at 0.30 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that AMED's debt-to-equity ratio is low, the quick ratio, which is currently 0.57, displays a potential problem in covering short-term cash needs.
- AMEDISYS INC 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. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AMEDISYS INC reported poor results of -$2.97 versus -$2.64 in the prior year. This year, the market expects an improvement in earnings ($0.55 versus -$2.97).
- You can view the full analysis from the report here: AMED Ratings Report