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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 increase in net income, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity.
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Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 64.5% when compared to the same quarter one year prior, rising from $9.90 million to $16.29 million.
- Net operating cash flow has significantly increased by 88.98% to $45.29 million when compared to the same quarter last year. In addition, HAEMONETICS CORP has also vastly surpassed the industry average cash flow growth rate of 2.40%.
- Despite currently having a low debt-to-equity ratio of 0.54, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that HAE's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.73 is high and demonstrates strong liquidity.
- HAE has underperformed the S&P 500 Index, declining 13.72% from its price level of one year ago. 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.
- 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. In comparison to the other companies in the Health Care Equipment & Supplies industry and the overall market, HAEMONETICS CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
Haemonetics Corporation engages in the design, development, manufacture, and marketing of automated blood component collection devices and surgical blood salvage devices in the United States and internationally. Haemonetics has a market cap of $1.87 billion and is part of the health care sector and health services industry. Shares are down 14.6% year to date as of the close of trading on Wednesday.
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