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 robust revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- LMNX's revenue growth has slightly outpaced the industry average of 10.5%. Since the same quarter one year prior, revenues rose by 16.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- LMNX's debt-to-equity ratio is very low at 0.01 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 5.66, which clearly demonstrates the ability to cover short-term cash needs.
- LUMINEX CORP has improved earnings per share by 14.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, LUMINEX CORP increased its bottom line by earning $0.35 versus $0.12 in the prior year. This year, the market expects an improvement in earnings ($0.48 versus $0.35).
- The gross profit margin for LUMINEX CORP is currently very high, coming in at 75.20%. 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 7.20% trails the industry average.
- Net operating cash flow has slightly increased to $9.64 million or 5.97% when compared to the same quarter last year. Despite an increase in cash flow, LUMINEX CORP's cash flow growth rate is still lower than the industry average growth rate of 19.52%.
Luminex Corporation develops, manufactures, and sells proprietary biological testing technologies and products for the life sciences and diagnostic industries in the United States. The company has a P/E ratio of 46.5, below the average health services industry P/E ratio of 58.6 and above the S&P 500 P/E ratio of 17.7. Luminex has a market cap of $839.3 million and is part of the
industry. Shares are up 0.1% year to date as of the close of trading on Wednesday.
You can view the full
or get investment ideas from our
-- Written by a member of TheStreet RatingsStaff