NEW YORK ( TheStreet) -- DUSA Pharmaceuticals (Nasdaq: DUSA) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • DUSA's revenue growth has slightly outpaced the industry average of 2.6%. Since the same quarter one year prior, revenues slightly increased by 0.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • DUSA 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 5.67, which clearly demonstrates the ability to cover short-term cash needs.
  • 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 Biotechnology industry and the overall market, DUSA PHARMACEUTICALS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for DUSA PHARMACEUTICALS INC is currently very high, coming in at 81.90%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 43.50% significantly outperformed against the industry average.

DUSA Pharmaceuticals, Inc., a vertically integrated dermatology company, develops and markets Levulan photodynamic therapy (PDT) and other products for common skin conditions primarily in the United States, Canada, and Korea. The company has a P/E ratio of 29.2, equal to the average drugs industry P/E ratio and above the S&P 500 P/E ratio of 17.7. DUSA has a market cap of $100.8 million and is part of the health care sector and drugs industry. Shares are up 44.1% year to date as of the close of trading on Friday.

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