NEW YORK ( TheStreet) -- United Therapeutics Corporation (Nasdaq: UTHR) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall. Highlights from the ratings report include:
- The gross profit margin for UNITED THERAPEUTICS CORP is currently very high, coming in at 90.10%. Regardless of UTHR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, UTHR's net profit margin of 5.70% is significantly lower than the same period one year prior.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Biotechnology industry and the overall market on the basis of return on equity, UNITED THERAPEUTICS CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- Despite currently having a low debt-to-equity ratio of 0.34, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that UTHR's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.63 is high and demonstrates strong liquidity.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
- UTHR's very impressive revenue growth greatly exceeded the industry average of 3.6%. Since the same quarter one year prior, revenues leaped by 52.8%. Growth in the company's revenue appears to have helped boost the earnings per share.