NEW YORK (
) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and feeble growth in the company's earnings per share.
Highlights from the ratings report include:
- IMMU's very impressive revenue growth greatly exceeded the industry average of 8.3%. Since the same quarter one year prior, revenues leaped by 81.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- IMMU has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 5.19, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for IMMUNOMEDICS INC is rather low; currently it is at 19.90%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 20.50% trails the industry average.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, IMMUNOMEDICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
Immunomedics, Inc. engages in the research, development, manufacture, and marketing of monoclonal antibody-based products for the treatment of cancer, and autoimmune and other serious diseases. The company has a P/E ratio of 4.8, below the S&P 500 P/E ratio of 17.7. Immunomedics has a market cap of $267.7 million and is part of the
industry. Shares are down 4.2% year to date as of the close of trading on Thursday.
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