AngioDynamics Inc. Stock Downgraded (ANGO)

NEW YORK ( TheStreet) -- AngioDynamics (Nasdaq: ANGO) has been downgraded by TheStreet Ratings from buy 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 expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 8.6%. Since the same quarter one year prior, revenues slightly increased by 8.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • ANGO's debt-to-equity ratio is very low at 0.02 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 6.30, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for ANGIODYNAMICS INC is rather high; currently it is at 58.60%. Regardless of ANGO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ANGO's net profit margin of 4.00% is significantly lower than the same period one year prior.
  • Net operating cash flow has significantly decreased to $2.67 million or 73.00% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The share price of ANGIODYNAMICS INC has not done very well: it is down 24.45% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.

AngioDynamics, Inc. designs, develops, manufactures, and markets various therapeutic and diagnostic devices that enable interventional physicians to treat PVD, tumors, and other non-coronary diseases. The company operates in two divisions, Vascular and Oncology/Surgery. The company has a P/E ratio of 47, below the average health services industry P/E ratio of 54.4 and above the S&P 500 P/E ratio of 17.7. AngioDynamics has a market cap of $341.3 million and is part of the health care sector and health services industry. Shares are down 16.9% year to date as of the close of trading on Thursday.

You can view the full AngioDynamics Ratings Report or get investment ideas from our investment research center.
-- Written by a member of TheStreet Ratings Staff