NEW YORK ( TheStreet) -- Daxor Corporation (AMEX: DXR) has been downgraded by TheStreet Ratings from buy to hold. 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. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • Net operating cash flow has significantly decreased to -$1.22 million or 151.12% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, DAXOR CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • 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.
  • The revenue growth came in higher than the industry average of 2.3%. 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 8.6, equal to the average health services industry P/E ratio and below the S&P 500 P/E ratio of 16.4. Daxor has a market cap of $42.5 million and is part of the health care sector and health services industry. Shares are up 9.2% year to date as of the close of trading on Wednesday.

You can view the full Daxor Ratings Report or get investment ideas from our investment research center.
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