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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet, Inc., or any of its contributors.  TheStreet Ratings quantitative algorithm evaluates over 4,300 stocks on a daily basis by 32 different data factors and assigns a unique buy, sell, or hold recommendation on each stock.  Click here to learn more.

NEW YORK (TheStreet) -- Hyperion Therapeutics Inc (HPTX) has been upgraded by TheStreet Ratings from Sell to Buy with a ratings score of B.  TheStreet Ratings Team has this to say about their recommendation:

TheStreet Ratings team rates HYPERION THERAPEUTICS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate HYPERION THERAPEUTICS INC (HPTX) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

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Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • HPTX's very impressive revenue growth exceeded the industry average of 36.2%. Since the same quarter one year prior, revenues leaped by 65.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • HPTX's debt-to-equity ratio is very low at 0.14 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 5.00, which clearly demonstrates the ability to cover short-term cash 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 1413.6% when compared to the same quarter one year prior, rising from $0.47 million to $7.10 million.
  • HYPERION THERAPEUTICS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HYPERION THERAPEUTICS INC swung to a loss, reporting -$0.37 versus $0.68 in the prior year. This year, the market expects an improvement in earnings ($0.09 versus -$0.37).
  • The gross profit margin for HYPERION THERAPEUTICS INC is currently very high, coming in at 83.82%. Regardless of HPTX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, HPTX's net profit margin of 23.04% is significantly lower than the industry average.
  • You can view the full analysis from the report here: HPTX Ratings Report