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 good cash flow from operations, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.
Highlights from the ratings report include:
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, ORTHOVITA INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 1.8% when compared to the same quarter one year prior, going from -$1.19 million to -$1.17 million.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- Net operating cash flow has significantly increased by 129.41% to $1.08 million when compared to the same quarter last year. In addition, ORTHOVITA INC has also vastly surpassed the industry average cash flow growth rate of -14.93%.
Orthovita, Inc., a specialty spine and orthopedic company, develops and markets orthobiologic and biosurgery products. Orthovita has a market cap of $295 million and is part of the
industry. Shares are up 90.5% year to date as of the close of trading on Friday.
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