NEW YORK ( TheStreet) -- PDI (Nasdaq: PDII) has been upgraded by TheStreet Ratings from sell to hold. 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 and solid stock price performance. 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 PDI INC is rather low; currently it is at 22.80%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -5.70% trails that of 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. Compared to other companies in the Health Care Providers & Services industry and the overall market, PDI INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • PDII has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, PDII has a quick ratio of 1.71, which demonstrates the ability of the company to cover short-term liquidity needs.
  • PDII's very impressive revenue growth greatly exceeded the industry average of 6.5%. Since the same quarter one year prior, revenues leaped by 93.7%. Growth in the company's revenue appears to have helped boost the earnings per share.

PDI, Inc. provides outsourced promotional services to various companies in the pharmaceutical, biotechnology, and healthcare industries in the United States. PDI has a market cap of $118.1 million and is part of the services sector and diversified services industry. Shares are down 24.3% year to date as of the close of trading on Monday.

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