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NEW YORK (
) has been upgraded by TheStreet Ratings from sell 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 solid stock price performance. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.
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Highlights from the ratings report include:
- BSPM's very impressive revenue growth greatly exceeded the industry average of 2.4%. Since the same quarter one year prior, revenues leaped by 50.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- BSPM's debt-to-equity ratio is very low at 0.08 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 3.24, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for BIOSTAR PHARMACEUTICALS INC is rather high; currently it is at 51.60%. Regardless of BSPM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BSPM's net profit margin of 2.57% is significantly lower than the industry average.
- BIOSTAR PHARMACEUTICALS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, BIOSTAR PHARMACEUTICALS INC swung to a loss, reporting -$2.08 versus $1.32 in the prior year.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Pharmaceuticals industry and the overall market, BIOSTAR PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
Biostar Pharmaceuticals, Inc. engages in the development, manufacture, and marketing of over-the-counter (OTC) and prescription pharmaceutical products for various diseases and conditions in the People's Republic of China. Biostar has a market cap of $26.9 million and is part of the health care sector and drugs industry. Shares are up 118% year to date as of the close of trading on Friday.
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