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 downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
- EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.
Highlights from the ratings report include:
- Although TGX's debt-to-equity ratio of 0.29 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 7.92, which clearly demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has significantly increased by 525.46% to $3.93 million when compared to the same quarter last year. In addition, THERAGENICS CORP has also vastly surpassed the industry average cash flow growth rate of -41.21%.
- 39.90% is the gross profit margin for THERAGENICS CORP which we consider to be strong. Regardless of TGX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TGX's net profit margin of -1.69% significantly underperformed when compared to the industry average.
- In its most recent trading session, TGX has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, THERAGENICS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
Theragenics Corporation, a medical device company, manufactures, markets, and sells disposable devices and radioactive seeds to the surgical products and cancer treatment markets. It operates through two segments, Surgical Products and Brachytherapy Seed. The company has a P/E ratio of 20.6, above the S&P 500 P/E ratio of 17.7. Theragenics has a market cap of $49.5 million and is part of the health care sector and health services industry. Shares are up 3.8% year to date as of the close of trading on Friday.
You can view the full
or get investment ideas from our
-- Written by a member of TheStreet Ratings Staff
It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE