Editor's Note: 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.
NEW YORK (
) has been reiterated by TheStreet Ratings as a hold with a ratings score of C-. The company's strengths can be seen in multiple areas, such as its solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.
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Highlights from the ratings report include:
- Compared to its closing price of one year ago, ONXX's share price has jumped by 127.47%, exceeding the performance of the broader market during that same time frame. Although ONXX had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- ONXX's debt-to-equity ratio is very low at 0.21 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 4.81, which clearly demonstrates the ability to cover short-term cash needs.
- The revenue fell significantly faster than the industry average of 6.4%. Since the same quarter one year prior, revenues fell by 46.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, ONYX PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$100.99 million or 177.71% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
Onyx Pharmaceuticals, Inc., a biopharmaceutical company, engages in the development and commercialization of therapies that target the molecular mechanisms that cause cancer in the United States and internationally. Onyx has a market cap of $7.0 billion and is part of the health care sector and drugs industry. Shares are up 28.3% year to date as of the close of trading on Monday.
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--Written by a member of TheStreet Ratings Staff.
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