NEW YORK ( TheStreet) -- Onyx Pharmaceuticals (Nasdaq: ONXX) has been reiterated by TheStreet Ratings as a hold with a ratings score of C-. 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 and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow.
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- ONXX's very impressive revenue growth greatly exceeded the industry average of 43.4%. Since the same quarter one year prior, revenues leaped by 102.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ONXX's debt-to-equity ratio is very low at 0.15 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 8.43, which clearly demonstrates the ability to cover short-term cash needs.
- ONYX PHARMACEUTICALS INC has improved earnings per share by 46.6% in the most recent quarter compared to 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, ONYX PHARMACEUTICALS INC swung to a loss, reporting -$2.92 versus $0.94 in the prior year. This year, the market expects an improvement in earnings (-$1.67 versus -$2.92).
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, ONYX PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$111.17 million or 150.59% 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.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.