NEW YORK ( TheStreet) -- BioScrip (Nasdaq: BIOS) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself. Highlights from the ratings report include:
- BIOS's revenue growth has slightly outpaced the industry average of 12.7%. Since the same quarter one year prior, revenues rose by 18.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- BIOSCRIP INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, BIOSCRIP INC turned its bottom line around by earning $0.07 versus -$1.33 in the prior year. This year, the market expects an improvement in earnings ($0.11 versus $0.07).
- 35.60% is the gross profit margin for BIOSCRIP INC which we consider to be strong. Regardless of BIOS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -1.70% trails the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Health Care Providers & Services industry. The net income has significantly decreased by 191.9% when compared to the same quarter one year ago, falling from $2.94 million to -$2.70 million.
- Net operating cash flow has significantly decreased to $2.53 million or 92.02% 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 Ratings Staff