NEW YORK ( TheStreet) -- Momenta Pharmaceuticals (Nasdaq: MNTA) has been upgraded by TheStreet Ratings from sell to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Highlights from the ratings report include:
- The gross profit margin for MOMENTA PHARMACEUTICALS INC is rather high; currently it is at 62.50%. It has increased significantly from the same period last year. Along with this, the net profit margin of 62.20% significantly outperformed against the industry average.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Biotechnology industry and the overall market, MOMENTA PHARMACEUTICALS INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- MNTA's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 11.42, which clearly demonstrates the ability to cover short-term cash needs.
- MNTA's very impressive revenue growth greatly exceeded the industry average of 3.4%. Since the same quarter one year prior, revenues leaped by 933.0%. Growth in the company's revenue appears to have helped boost the earnings per share.