NEW YORK ( TheStreet) -- Furiex Pharmaceuticals (Nasdaq: FURX) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself. Highlights from the ratings report include:
- Net operating cash flow has decreased to -$11.79 million or 17.95% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- FURX has underperformed the S&P 500 Index, declining 8.20% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The gross profit margin for FURIEX PHARMACEUTICALS INC is currently very high, coming in at 100.00%. FURX has managed to maintain the strong profit margin since the same quarter of last year. Despite the mixed results of the gross profit margin, FURX's net profit margin of -338.60% significantly underperformed when compared to the industry average.
- Compared to other companies in the Life Sciences Tools & Services industry and the overall market, FURIEX PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- FURIEX PHARMACEUTICALS INC has improved earnings per share by 42.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, FURIEX PHARMACEUTICALS INC reported poor results of -$4.96 versus -$4.14 in the prior year. This year, the market expects an improvement in earnings (-$1.39 versus -$4.96).
-- Written by a member of TheStreet Ratings Staff