NEW YORK ( TheStreet) -- Cardiovascular Systems (Nasdaq: CSII) 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, solid stock price performance and compelling growth in net income. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall. Highlights from the ratings report include:
- Net operating cash flow has decreased to -$3.70 million or 15.86% when compared to the same quarter last year. Despite a decrease in cash flow of 15.86%, CARDIOVASCULAR SYSTEMS INC is in line with the industry average cash flow growth rate of -22.25%.
- 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 Equipment & Supplies industry and the overall market, CARDIOVASCULAR SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- CARDIOVASCULAR SYSTEMS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CARDIOVASCULAR SYSTEMS INC reported poor results of -$1.62 versus -$0.59 in the prior year. This year, the market expects an improvement in earnings ($0.16 versus -$1.62).
- Powered by its strong earnings growth of 65.90% and other important driving factors, this stock has surged by 174.33% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- The revenue growth came in higher than the industry average of 6.7%. Since the same quarter one year prior, revenues rose by 22.0%. Growth in the company's revenue appears to have helped boost the earnings per share.