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 compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.
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 Pharmaceuticals industry. The net income increased by 179.0% when compared to the same quarter one year prior, rising from -$14.18 million to $11.21 million.
- MAPP's debt-to-equity ratio is very low at 0.02 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 5.08, which clearly demonstrates the ability to cover short-term cash needs.
- MAP PHARMACEUTICALS INC 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, MAP PHARMACEUTICALS INC reported poor results of -$2.00 versus -$0.46 in the prior year. This year, the market expects an improvement in earnings ($0.17 versus -$2.00).
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Pharmaceuticals industry and the overall market, MAP PHARMACEUTICALS INC's return on equity is below that of both the industry average and the S&P 500.
- In its most recent trading session, MAPP has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
MAP Pharmaceuticals, Inc., a development stage company, focuses on the development and commercialization of inhalation therapies for patients suffering from migraine. It is developing LEVADEX, which is in Phase III clinical trials for the treatment of migraine through oral inhalation. MAP has a market cap of $418.5 million and is part of the
industry. Shares are down 17.8% year to date as of the close of trading on Wednesday.
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