NEW YORK ( TheStreet) -- Meridian Bioscience (Nasdaq: VIVO) 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, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 8.0%. Since the same quarter one year prior, revenues slightly increased by 8.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- VIVO 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 3.03, which clearly demonstrates the ability to cover short-term cash needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, MERIDIAN BIOSCIENCE INC's return on equity exceeds that of both the industry average and the S&P 500.
- MERIDIAN BIOSCIENCE INC has improved earnings per share by 6.7% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, MERIDIAN BIOSCIENCE INC's EPS of $0.66 remained unchanged from the prior years' EPS of $0.66. This year, the market expects an improvement in earnings ($0.83 versus $0.66).
- The net income growth from the same quarter one year ago has exceeded that of the Health Care Equipment & Supplies industry average, but is less than that of the S&P 500. The net income increased by 9.2% when compared to the same quarter one year prior, going from $6.03 million to $6.58 million.
-- Written by a member of TheStreet RatingsStaff