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 revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.
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Highlights from the ratings report include:
- ONXX's very impressive revenue growth greatly exceeded the industry average of 12.6%. Since the same quarter one year prior, revenues leaped by 102.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ONXX's debt-to-equity ratio is very low at 0.15 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 7.63, which clearly demonstrates the ability to cover short-term cash needs.
- ONYX PHARMACEUTICALS INC has improved earnings per share by 46.6% 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, ONYX PHARMACEUTICALS INC swung to a loss, reporting -$2.92 versus $0.94 in the prior year. This year, the market expects an improvement in earnings (-$1.67 versus -$2.92).
- 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.
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 $6.8 billion and is part of the health care sector and drugs industry. Shares are up 23.2% year to date as of the close of trading on Thursday.
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--Written by a member of TheStreet Ratings Staff.
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