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.
Trade-Ideas LLC identified
) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Salix Pharmaceuticals as such a stock due to the following factors:
- SLXP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $108.7 million.
- SLXP is down 2.7% today from today's close.
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More details on SLXP:
Salix Pharmaceuticals, Ltd. acquires, develops, and commercializes prescription drugs and medical devices to treat various gastrointestinal diseases in the United States. SLXP has a PE ratio of 120.4. Currently there are 8 analysts that rate Salix Pharmaceuticals a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Salix Pharmaceuticals has been 1.1 million shares per day over the past 30 days. Salix has a market cap of $8.7 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.14 and a short float of 17.3% with 9.27 days to cover. Shares are up 53% year-to-date as of the close of trading on Wednesday.
rates Salix Pharmaceuticals as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- SLXP's very impressive revenue growth greatly exceeded the industry average of 5.4%. Since the same quarter one year prior, revenues leaped by 89.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, SLXP's share price has jumped by 78.49%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- SALIX PHARMACEUTICALS LTD 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. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SALIX PHARMACEUTICALS LTD increased its bottom line by earning $2.14 versus $1.01 in the prior year. This year, the market expects an improvement in earnings ($6.45 versus $2.14).
- The gross profit margin for SALIX PHARMACEUTICALS LTD is currently very high, coming in at 75.18%. Regardless of SLXP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SLXP's net profit margin of -11.41% significantly underperformed when compared to the industry average.
- The debt-to-equity ratio is very high at 3.97 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Regardless of the company's weak debt-to-equity ratio, SLXP has managed to keep a strong quick ratio of 1.58, which demonstrates the ability to cover short-term cash needs.
- You can view the full Salix Pharmaceuticals Ratings Report.