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) -- Life Technologies (Nasdaq: LIFE) has been reiterated by TheStreet Ratings as a buy with a ratings score of A-. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, solid stock price performance, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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- Despite its growing revenue, the company underperformed as compared with the industry average of 9.5%. Since the same quarter one year prior, revenues slightly increased by 2.5%. 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.
- Net operating cash flow has increased to $134.72 million or 29.64% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -13.31%.
- LIFE TECHNOLOGIES CORP' earnings per share from the most recent quarter came in slightly below the year earlier quarter. 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, LIFE TECHNOLOGIES CORP increased its bottom line by earning $2.39 versus $2.05 in the prior year. This year, the market expects an improvement in earnings ($4.22 versus $2.39).
- Compared to its closing price of one year ago, LIFE's share price has jumped by 78.41%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- The gross profit margin for LIFE TECHNOLOGIES CORP is rather high; currently it is at 69.70%. Regardless of LIFE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LIFE's net profit margin of 12.59% compares favorably to the industry average.
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