Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model
NEW YORK (
) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, deteriorating net income, disappointing return on equity and feeble growth in its earnings per share.
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Highlights from the ratings report include:
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 35.07%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 163.63% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, HSKA is still more expensive than most of the other companies in its industry.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Pharmaceuticals industry. The net income has significantly decreased by 167.8% when compared to the same quarter one year ago, falling from $0.58 million to -$0.40 million.
- 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. Compared to other companies in the Pharmaceuticals industry and the overall market, HESKA CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- HESKA CORP has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, HESKA CORP reported lower earnings of $0.22 versus $0.40 in the prior year. This year, the market expects an improvement in earnings ($0.32 versus $0.22).
- HSKA, with its decline in revenue, slightly underperformed the industry average of 7.2%. Since the same quarter one year prior, revenues slightly dropped by 1.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
Heska Corporation develops, manufactures, markets, sells, and supports veterinary products for canine and feline companion animal health markets in the United States and internationally. The company has a P/E ratio of 35.4, above the S&P 500 P/E ratio of 17.7. Heska has a market cap of $46.9 million and is part of the health care sector and health services industry. Shares are up 32.7% year to date as of the close of trading on Wednesday.
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-- Written by a member of TheStreet Ratings Staff
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