NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. 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, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- ANGO's revenue growth has slightly outpaced the industry average of 5.2%. 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.
- Net operating cash flow has significantly increased by 75.14% to $3.04 million when compared to the same quarter last year. In addition, ANGIODYNAMICS INC has also vastly surpassed the industry average cash flow growth rate of 1.42%.
- 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.
- ANGIODYNAMICS INC's earnings per share declined by 37.5% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, ANGIODYNAMICS INC reported lower earnings of $0.33 versus $0.50 in the prior year. This year, the market expects an improvement in earnings ($0.45 versus $0.33).
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 51.4, below the average health services industry P/E ratio of 53.2 and above the S&P 500 P/E ratio of 17.7. AngioDynamics has a market cap of $388.8 million and is part of the
industry. Shares are up 2.2% year to date as of the close of trading on Tuesday.
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