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 revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.
Highlights from the ratings report include:
- SIGA's very impressive revenue growth greatly exceeded the industry average of 3.1%. Since the same quarter one year prior, revenues leaped by 62.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- SIGA 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 7.50, which clearly demonstrates the ability to cover short-term cash needs.
- SIGA TECHNOLOGIES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, SIGA TECHNOLOGIES INC turned its bottom line around by earning $0.24 versus -$0.62 in the prior year. For the next year, the market is expecting a contraction of 154.2% in earnings (-$0.13 versus $0.24).
- SIGA's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 71.80%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
SIGA Technologies, Inc., a bio-defense company, engages in the research, discovery, development, and commercialization of novel products for the prevention and treatment of infectious diseases. The company has a P/E ratio of 37.3, below the average drugs industry P/E ratio of 51 and above the S&P 500 P/E ratio of 17.7. Siga has a market cap of $157.3 million and is part of the
industry. Shares are up 36.1% year to date as of the close of trading on Thursday.
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-- Written by a member of TheStreet RatingsStaff