NEW YORK ( TheStreet) -- Myrexis (Nasdaq: MYRX) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year. Highlights from the ratings report include:
- MYRX has underperformed the S&P 500 Index, declining 17.16% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- Compared to other companies in the Biotechnology industry and the overall market, MYREXIS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- MYRX 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. Along with this, the company maintains a quick ratio of 30.44, which clearly demonstrates the ability to cover short-term cash needs.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Biotechnology industry average. The net income increased by 46.8% when compared to the same quarter one year prior, rising from -$14.79 million to -$7.86 million.