Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model. NEW YORK ( TheStreet) -- Meridian Bioscience (Nasdaq: VIVO) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
- ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.
- The revenue growth came in higher than the industry average of 6.0%. Since the same quarter one year prior, revenues slightly increased by 5.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- VIVO 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 2.98, which clearly demonstrates the ability to cover short-term cash needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, MERIDIAN BIOSCIENCE INC's return on equity exceeds that of both the industry average and the S&P 500.
- The gross profit margin for MERIDIAN BIOSCIENCE INC is rather high; currently it is at 69.00%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 20.40% is above that of the industry average.
- Net operating cash flow has significantly increased by 107.47% to $13.02 million when compared to the same quarter last year. In addition, MERIDIAN BIOSCIENCE INC has also vastly surpassed the industry average cash flow growth rate of 13.20%.
-- Written by a member of TheStreet Ratings Staff