NEW YORK ( TheStreet) -- Cardiome Pharma Corp (Nasdaq: CRME) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and deteriorating net income. 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 when compared to that of the S&P 500 and the Pharmaceuticals industry. The net income has significantly decreased by 146.2% when compared to the same quarter one year ago, falling from $15.47 million to -$7.15 million.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 43.21%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 146.15% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
- CARDIOME PHARMA CORP has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, CARDIOME PHARMA CORP turned its bottom line around by earning $0.58 versus -$0.02 in the prior year.
- Despite currently having a low debt-to-equity ratio of 0.56, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 13.93 is very high and demonstrates very strong liquidity.
- Net operating cash flow has increased to -$7.28 million or 18.43% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -4.63%.