Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link
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 robust revenue growth, 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 company's return on equity has been disappointing.
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Highlights from the ratings report include:
- POZN's very impressive revenue growth greatly exceeded the industry average of 5.2%. Since the same quarter one year prior, revenues leaped by 433.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- POZN has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 2.99, which clearly demonstrates the ability to cover short-term cash needs.
- 38.39% is the gross profit margin for POZEN INC which we consider to be strong. It has increased significantly from the same period last year. Along with this, the net profit margin of 38.48% significantly outperformed against the industry average.
- 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 Pharmaceuticals industry and the overall market, POZEN INC's return on equity significantly trails that of both the industry average and the S&P 500.
POZEN Inc., a pharmaceutical company, develops products for the treatment of acute and chronic pain, and pain related conditions in the United States and internationally. POZEN has a market cap of $252.1 million and is part of the health care sector and drugs industry. Shares are up 4.3% year to date as of the close of trading on Monday.
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