NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Compared to its closing price of one year ago, KNSY's share price has jumped by 26.52%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- Despite currently having a low debt-to-equity ratio of 0.35, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 4.03 is very high and demonstrates very strong liquidity.
- The gross profit margin for KENSEY NASH CORP is currently very high, coming in at 70.90%. Regardless of KNSY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 15.70% trails the industry average.
- KNSY, with its decline in revenue, underperformed when compared the industry average of 6.7%. Since the same quarter one year prior, revenues fell by 14.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- KENSEY NASH CORP's earnings per share declined by 43.3% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, KENSEY NASH CORP reported lower earnings of $0.19 versus $1.81 in the prior year. This year, the market expects an improvement in earnings ($1.87 versus $0.19).
Kensey Nash Corporation, a medical device company, engages in the field of regenerative medicine utilizing its proprietary collagen and synthetic polymer technology to help repair damaged or diseased tissues. The company has a P/E ratio of 58, below the average health services industry P/E ratio of 64.7 and above the S&P 500 P/E ratio of 17.7. Kensey Nash has a market cap of $237.3 million and is part of the
industry. Shares are up 4% year to date as of the close of trading on Friday.
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