Biogen Idec Inc Stock Buy Recommendation Reiterated (BIIB)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

NEW YORK ( TheStreet) -- Biogen Idec (Nasdaq: BIIB) 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, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • BIIB's revenue growth has slightly outpaced the industry average of 11.6%. Since the same quarter one year prior, revenues rose by 21.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • BIIB's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.36, which illustrates the ability to avoid short-term cash problems.
  • BIOGEN IDEC INC has improved earnings per share by 27.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BIOGEN IDEC INC increased its bottom line by earning $5.76 versus $5.03 in the prior year. This year, the market expects an improvement in earnings ($8.51 versus $5.76).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Biotechnology industry average. The net income increased by 26.8% when compared to the same quarter one year prior, rising from $386.85 million to $490.67 million.

Biogen Idec Inc. discovers, develops, manufactures, and markets therapies for the treatment of neurodegenerative diseases, hemophilia, and autoimmune disorders in the United States and internationally. Biogen Idec has a market cap of $54.1 billion and is part of the health care sector and drugs industry. Shares are up 55.5% year to date as of the close of trading on Tuesday.

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

--Written by a member of TheStreet Ratings Staff.

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