Sucampo Pharmaceuticals Inc. Stock Downgraded (SCMP)

NEW YORK ( TheStreet) -- Sucampo Pharmaceuticals (Nasdaq: SCMP) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and generally weak debt management.

Highlights from the ratings report include:
  • This stock has managed to rise its share value by 7.88% over the past twelve months. Regardless of the rise in share value over the previous year, we feel that the risks involved in investing in this stock do not compensate for any future upside potential.
  • Currently the debt-to-equity ratio of 1.56 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 2.62, which shows the ability to cover short-term cash needs.
  • 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 Pharmaceuticals industry and the overall market, SUCAMPO PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • 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 4671.9% when compared to the same quarter one year ago, falling from -$0.19 million to -$9.02 million.
  • SUCAMPO PHARMACEUTICALS INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, SUCAMPO PHARMACEUTICALS INC reported poor results of -$0.07 versus -$0.02 in the prior year.

Sucampo Pharmaceuticals, Inc., a pharmaceutical company, focuses on the discovery, development, and commercialization of drugs based on prostones primarily in the Americas, Europe, and Asia. Sucampo has a market cap of $60.5 million and is part of the health care sector and drugs industry. Shares are up 3.4% year to date as of the close of trading on Monday.

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

null

More from Markets

Canopy Growth Lets Down Eager Pot Investors; PayPal Keeps Dominating -- ICYMI

Canopy Growth Lets Down Eager Pot Investors; PayPal Keeps Dominating -- ICYMI

Dow, S&P 500 and Nasdaq Tumble After Trump Calls Off North Korea Summit

Dow, S&P 500 and Nasdaq Tumble After Trump Calls Off North Korea Summit

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists

Automakers Slump as Trump Tariffs Threaten Both Manufacturers and Consumers

Automakers Slump as Trump Tariffs Threaten Both Manufacturers and Consumers