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NEW YORK (TheStreet) -- IGI Laboratories Inc (IG) - Get Principal Investment Grade Corporate Active ETF Report has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate IGI LABORATORIES INC (IG) a BUY. This is driven by several positive factors, 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, solid stock price performance, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- IG's very impressive revenue growth greatly exceeded the industry average of 8.8%. Since the same quarter one year prior, revenues leaped by 66.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- IG's debt-to-equity ratio is very low at 0.09 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 2.54, which clearly demonstrates the ability to cover short-term cash needs.
- This stock has managed to rise its share value by 396.82% over the past twelve months. Regarding the stock's future course, although almost any stock can fall in a broad market decline, IG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- IGI LABORATORIES INC has shown no change in earnings for its most recently reported quarter when compared with the same quarter a year earlier. 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, IGI LABORATORIES INC continued to lose money by earning -$0.03 versus -$0.10 in the prior year. This year, the market expects an improvement in earnings ($0.06 versus -$0.03).
- 39.48% is the gross profit margin for IGI LABORATORIES INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -3.02% is in-line with the industry average.
- You can view the full analysis from the report here: IG Ratings Report