NEW YORK (
) has been downgraded by TheStreet Ratings from buy to hold. 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 and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and weak operating cash flow.
Highlights from the ratings report include:
- ALOG's revenue growth has slightly outpaced the industry average of 6.6%. Since the same quarter one year prior, revenues rose by 11.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- ALOG has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.11, which clearly demonstrates the ability to cover short-term cash needs.
- ANALOGIC CORP's earnings per share declined by 12.5% 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, ANALOGIC CORP increased its bottom line by earning $1.26 versus $0.29 in the prior year. This year, the market expects an improvement in earnings ($1.44 versus $1.26).
- Net operating cash flow has significantly decreased to -$1.69 million or 113.04% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Health Care Equipment & Supplies industry. The net income has decreased by 10.7% when compared to the same quarter one year ago, dropping from $4.84 million to $4.32 million.
Analogic Corporation operates as a signal- and image-processing company that designs and manufactures medical imaging, and security systems and subsystems to original equipment manufacturers (OEMs) and end users in the healthcare and homeland security markets. The company has a P/E ratio of 32, above the average electronics industry P/E ratio of 29.7 and above the S&P 500 P/E ratio of 17.7. Analogic has a market cap of $570.8 million and is part of the
industry. Shares are down 10% year to date as of the close of trading on Monday.
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