NEW YORK ( TheStreet) -- Furiex Pharmaceuticals (Nasdaq: FURX) has been upgraded by TheStreet Ratings from sell to hold. 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 and solid stock price performance. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good. Highlights from the ratings report include:
- FURX's very impressive revenue growth greatly exceeded the industry average of 10.2%. Since the same quarter one year prior, revenues leaped by 586.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- FURX's debt-to-equity ratio is very low at 0.13 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.83, which clearly demonstrates the ability to cover short-term cash needs.
- Compared to other companies in the Life Sciences Tools & Services industry and the overall market, FURIEX PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for FURIEX PHARMACEUTICALS INC is currently very high, coming in at 100.00%. FURX has managed to maintain the strong profit margin since the same quarter of last year. Despite the mixed results of the gross profit margin, FURX's net profit margin of -338.60% significantly underperformed when compared to the industry average.
- FURIEX PHARMACEUTICALS INC has improved earnings per share by 42.4% in the most recent quarter compared to 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, FURIEX PHARMACEUTICALS INC reported poor results of -$4.96 versus -$4.14 in the prior year.
-- Written by a member of TheStreet RatingsStaff