Immunomedics Inc. Stock Downgraded (IMMU)

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) -- Immunomedics (Nasdaq: IMMU) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:
  • 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 Biotechnology industry. The net income has significantly decreased by 44.7% when compared to the same quarter one year ago, falling from -$5.10 million to -$7.38 million.
  • Net operating cash flow has decreased to -$7.34 million or 17.25% 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.
  • The share price of IMMUNOMEDICS INC has not done very well: it is down 6.14% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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.
  • IMMUNOMEDICS INC's earnings per share declined by 42.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, IMMUNOMEDICS INC turned its bottom line around by earning $0.00 versus -$0.21 in the prior year. This year, the market expects a decline in earnings from $0.00 to -$0.37.
  • IMMU, with its decline in revenue, underperformed when compared the industry average of 5.8%. Since the same quarter one year prior, revenues slightly dropped by 8.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
.

Immunomedics, Inc., a biopharmaceutical company, engages in the research, development, manufacture, and marketing of monoclonal, antibody-based products for the treatment of cancer, autoimmune, and other serious diseases in the United States and Europe. The company has a P/E ratio of -159.5, below the S&P 500 P/E ratio of 17.7. Immunomedics has a market cap of $241.5 million and is part of the health care sector and drugs industry. Shares are down 8.1% year to date as of the close of trading on Tuesday.

You can view the full Immunomedics Ratings Report or get investment ideas from our investment research center.

-- Written by a member of TheStreet Ratings Staff

FREE for a limited time only: Get TheStreet Ratings #1 Stock Report NOW!.
null