NEW YORK ( TheStreet) -- Opko Health (NYSE: OPK) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins. Highlights from the ratings report include:
- This stock has managed to rise its share value by 25.65% over the past twelve months. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Biotechnology industry. The net income increased by 2834.5% when compared to the same quarter one year prior, rising from -$0.67 million to $18.40 million.
- 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 on the basis of return on equity, OPKO HEALTH INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- The gross profit margin for OPKO HEALTH INC is currently extremely low, coming in at 14.60%. It has decreased significantly from the same period last year. Despite the weak results of the gross profit margin, the net profit margin of 317.60% has significantly outperformed against the industry average.
- Net operating cash flow has significantly decreased to -$6.59 million or 239.93% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
-- Written by a member of TheStreet RatingsStaff