NEW YORK ( TheStreet) -- Daxor Corporation (AMEX: DXR) has been upgraded by TheStreet Ratings from hold to buy. 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 expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Health Care Equipment & Supplies industry. The net income has decreased by 0.8% when compared to the same quarter one year ago, dropping from $2.63 million to $2.61 million.
  • DAXOR CORP reported flat earnings per share in the most recent quarter. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, DAXOR CORP reported lower earnings of $1.37 versus $3.46 in the prior year.
  • The gross profit margin for DAXOR CORP is currently very high, coming in at 75.30%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 575.10% significantly outperformed against the industry average.
  • DXR's debt-to-equity ratio is very low at 0.08 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, DXR has a quick ratio of 2.16, which demonstrates the ability of the company to cover short-term liquidity needs.
  • DXR's revenue growth has slightly outpaced the industry average of 0.1%. Since the same quarter one year prior, revenues slightly increased by 9.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.

Daxor Corporation operates as a medical device manufacturing company in the United States. The company manufactures and markets blood volume measurement equipment. Its BVA-100 Blood Volume Analyzer is an instrument that measures human blood volume. The company has a P/E ratio of 34.8, equal to the average health services industry P/E ratio and above the S&P 500 P/E ratio of 15.8. Daxor has a market cap of $42.7 million and is part of the health care sector and health services industry. The stock last closed at $10.10 and the average volume of shares traded for Daxor has been 3,300 shares per day over the past 30 days. Shares are up 9.7% year to date as of the close of trading on Monday.

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