NEW YORK ( TheStreet) -- GenMark Diagnostics (Nasdaq: GNMK) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, poor profit margins and a generally disappointing performance in the stock itself.
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- GNMK's very impressive revenue growth greatly exceeded the industry average of 5.3%. Since the same quarter one year prior, revenues leaped by 184.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- GNMK's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 4.62, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for GENMARK DIAGNOSTICS INC is currently lower than what is desirable, coming in at 34.10%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, GNMK's net profit margin of -257.40% significantly underperformed when compared to the industry average.
- Net operating cash flow has significantly decreased to -$5.50 million or 77.86% 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