NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Although TGX's debt-to-equity ratio of 0.28 is very low, it is currently higher than that of the industry average. To add to this, TGX has a quick ratio of 1.80, which demonstrates the ability of the company to cover short-term liquidity needs.
- THERAGENICS CORP reported flat earnings per share in the most recent quarter. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, THERAGENICS CORP increased its bottom line by earning $0.09 versus $0.05 in the prior year.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 8.4%. Since the same quarter one year prior, revenues slightly dropped by 3.9%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
- 41.90% 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 1.40% is significantly lower than the same period one year prior.
Theragenics Corporation operates as a medical device company serving the cancer treatment and surgical products markets primarily in the United States and Europe. It operates through two segments, Surgical Products and Brachytherapy Seed. The company has a P/E ratio of 17.9, below the average health services industry P/E ratio of 18.6 and above the S&P 500 P/E ratio of 17.7. Theragenics has a market cap of $56.8 million and is part of the
industry. Shares are down 9.5% year to date as of the close of trading on Friday.
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-- Written by a member of TheStreet RatingsStaff