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 increase in net income, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 503.1% when compared to the same quarter one year prior, rising from $0.06 million to $0.39 million.
- LMAT 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 4.50, which clearly demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has significantly increased by 118.34% to $0.39 million when compared to the same quarter last year. In addition, LEMAITRE VASCULAR INC has also vastly surpassed the industry average cash flow growth rate of 6.40%.
- The gross profit margin for LEMAITRE VASCULAR INC is currently very high, coming in at 74.80%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, LMAT's net profit margin of 2.80% significantly trails the industry average.
- LEMAITRE VASCULAR INC has shown improvement in its 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, LEMAITRE VASCULAR INC reported lower earnings of $0.13 versus $0.36 in the prior year. This year, the market expects an improvement in earnings ($0.19 versus $0.13).
LeMaitre Vascular, Inc., together with its subsidiaries, engages in the development, manufacture, and marketing of medical devices and implants for the treatment of peripheral vascular disease worldwide. The company has a P/E ratio of 36.5, equal to the average health services industry P/E ratio and above the S&P 500 P/E ratio of 17.7. LeMaitre Vascular has a market cap of $83.2 million and is part of the
industry. Shares are down 7.6% year to date as of the close of trading on Tuesday.
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-- Written by a member of TheStreet Ratings Staff
TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.