NEW YORK ( TheStreet) -- RadNet (Nasdaq: RDNT) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and feeble growth in the company's earnings per share.
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- This stock has managed to rise its share value by 7.27% over the past twelve months. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- Despite its growing revenue, the company underperformed as compared with the industry average of 13.8%. Since the same quarter one year prior, revenues slightly increased by 6.7%. 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.
- 37.48% is the gross profit margin for RADNET INC which we consider to be strong. Regardless of RDNT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -0.77% trails the industry average.
- Net operating cash flow has declined marginally to $15.22 million or 1.36% when compared to the same quarter last year. Despite a decrease in cash flow RADNET INC is still fairing well by exceeding its industry average cash flow growth rate of -41.74%.
- 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 Health Care Providers & Services industry. The net income has significantly decreased by 1109.0% when compared to the same quarter one year ago, falling from -$0.11 million to -$1.34 million.