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"We rate PROSENSA HOLDING NV (RNA) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share and deteriorating net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to its closing price of one year ago, RNA's share price has jumped by 313.75%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- RNA's debt-to-equity ratio is very low at 0.16 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 8.04, which clearly demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has increased to -$8.23 million or 19.68% when compared to the same quarter last year. Despite an increase in cash flow of 19.68%, PROSENSA HOLDING NV is still growing at a significantly lower rate than the industry average of 117.29%.
- PROSENSA HOLDING NV has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. For the next year, the market is expecting a contraction of 26.5% in earnings (-$0.65 versus -$0.51).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. The net income has significantly decreased by 114.4% when compared to the same quarter one year ago, falling from -$6.24 million to -$13.38 million.
You can view the full analysis from the report here: