NEW YORK ( TheStreet) -- MAP Pharmaceuticals (Nasdaq: MAPP) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including premium valuation and feeble growth in the company's earnings per share. Highlights from the ratings report include:
- MAPP 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 7.03, 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 Pharmaceuticals industry and the overall market on the basis of return on equity, MAP PHARMACEUTICALS INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- MAP PHARMACEUTICALS INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, MAP PHARMACEUTICALS INC turned its bottom line around by earning $0.18 versus -$2.00 in the prior year. For the next year, the market is expecting a contraction of 866.7% in earnings (-$1.38 versus $0.18).
-- Written by a member of TheStreet Ratings Staff