NEW YORK ( TheStreet) -- Valeant Pharmaceuticals International (NYSE: VRX) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, expanding profit margins and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally poor debt management on most measures that we evaluated. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 4.3%. Since the same quarter one year prior, revenues rose by 33.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 279.4% when compared to the same quarter one year prior, rising from -$31.13 million to $55.86 million.
- Net operating cash flow has significantly increased by 13665.40% to $189.78 million when compared to the same quarter last year. In addition, VALEANT PHARMACEUTICALS INTL has also vastly surpassed the industry average cash flow growth rate of -3.46%.
- The gross profit margin for VALEANT PHARMACEUTICALS INTL is currently very high, coming in at 75.40%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 8.10% trails the industry average.
- VALEANT PHARMACEUTICALS INTL reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, VALEANT PHARMACEUTICALS INTL turned its bottom line around by earning $0.50 versus -$1.18 in the prior year.
-- Written by a member of TheStreet RatingsStaff