NEW YORK ( TheStreet) -- Immunomedics (Nasdaq: IMMU) has been upgraded by TheStreet Ratings from sell to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Highlights from the ratings report include:
- IMMU's very impressive revenue growth greatly exceeded the industry average of 2.8%. Since the same quarter one year prior, revenues leaped by 2856.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- IMMU 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 8.05, 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, IMMUNOMEDICS INC's return on equity exceeds that of both the industry average and the S&P 500.
- The gross profit margin for IMMUNOMEDICS INC is currently very high, coming in at 72.70%. It has increased significantly from the same period last year. Along with this, the net profit margin of 69.80% significantly outperformed against the industry average.
-- Written by a member of TheStreet RatingsStaff