NEW YORK (
-- Cytori Therapeutics
) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.
Highlights from the ratings report include:
- The gross profit margin for CYTORI THERAPEUTICS INC is rather high; currently it is at 59.90%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, CYTX's net profit margin of -364.80% significantly underperformed when compared to the industry average.
- CYTORI THERAPEUTICS INC has improved earnings per share by 25.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, CYTORI THERAPEUTICS INC continued to lose money by earning -$0.59 versus -$0.64 in the prior year. For the next year, the market is expecting a contraction of 1.7% in earnings (-$0.60 versus -$0.59).
- CYTX's debt-to-equity ratio of 0.86 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 4.14 is very high and demonstrates very strong liquidity.
- Net operating cash flow has increased to -$4.77 million or 22.16% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -14.01%.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 57.40% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
Cytori Therapeutics, Inc. engages in the development, manufacture, and sale of medical technologies to enable the practice of regenerative medicine. Regenerative medicines focus on repairing or restoring lost or damaged tissue and cell function. Cytori has a market cap of $369.3 million and is part of the
industry. Shares are up 51.6% year to date as of the close of trading on Wednesday.
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