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, increase in net income, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 4.7%. Since the same quarter one year prior, revenues rose by 37.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- CBPO's debt-to-equity ratio is very low at 0.03 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, CBPO has a quick ratio of 2.06, which demonstrates the ability of the company to cover short-term liquidity needs.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Biotechnology industry. The net income increased by 105.4% when compared to the same quarter one year prior, rising from $6.31 million to $12.96 million.
- Net operating cash flow has significantly increased by 185.19% to $8.21 million when compared to the same quarter last year. In addition, CHINA BIOLOGIC PRODUCTS INC has also vastly surpassed the industry average cash flow growth rate of -22.09%.
China Biologic Products, Inc., a biopharmaceutical company, through its subsidiaries, engages in the research, development, manufacture, and sale of human plasma-based biopharmaceutical products to hospitals and inoculation centers in the People's Republic of China. The company has a P/E ratio of 14, above the average drugs industry P/E ratio of 12.9 and below the S&P 500 P/E ratio of 17.7. China Biologic has a market cap of $210.7 million and is part of the
industry. Shares are down 22.2% year to date as of the close of trading on Tuesday.
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-- Written by a member of TheStreet Ratings Staff