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 good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 6.4%. Since the same quarter one year prior, revenues slightly increased by 5.7%. 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.
- ANGO's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 6.76, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for ANGIODYNAMICS INC is rather high; currently it is at 60.60%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, ANGO's net profit margin of 2.50% significantly trails the industry average.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, ANGIODYNAMICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The share price of ANGIODYNAMICS INC is down 5.43% when compared to where it was trading one year earlier. This reflects both (a) the trend in the overall market as well as (b) the sharp decline in the company's earnings per share. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
AngioDynamics, Inc. designs, develops, manufactures, and markets various therapeutic and diagnostic devices that enable interventional physicians to treat PVD, tumors, and other non-coronary diseases. The company operates in two divisions, Vascular and Oncology/Surgery. The company has a P/E ratio of 44.2, below the average health services industry P/E ratio of 45.8 and above the S&P 500 P/E ratio of 17.7. AngioDynamics has a market cap of $334.2 million and is part of the
industry. Shares are down 12.7% year to date as of the close of trading on Monday.
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