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NEW YORK (TheStreet) -- Intrexon (XON) - Get Report has been upgraded by TheStreet Ratings from Sell to Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate INTREXON CORP (XON) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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 and solid stock price performance. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- XON's very impressive revenue growth greatly exceeded the industry average of 36.7%. Since the same quarter one year prior, revenues leaped by 335.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- XON's debt-to-equity ratio is very low at 0.03 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 3.06, which clearly demonstrates the ability to cover short-term cash needs.
- INTREXON CORP 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, INTREXON CORP reported poor results of -$0.84 versus -$0.03 in the prior year. This year, the market expects an improvement in earnings (-$0.37 versus -$0.84).
- Compared to other companies in the Biotechnology industry and the overall market, INTREXON CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has increased to -$9.05 million or 11.48% when compared to the same quarter last year. Despite an increase in cash flow, INTREXON CORP's cash flow growth rate is still lower than the industry average growth rate of 51.85%.
- You can view the full analysis from the report here: XON Ratings Report