Biomarin Pharmaceutical (BMRN): Today's Post-Market Laggard

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.

Trade-Ideas LLC identified Biomarin Pharmaceutical ( BMRN) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Biomarin Pharmaceutical as such a stock due to the following factors:

  • BMRN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $154.3 million.
  • BMRN is down 3.4% today from today's close.

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More details on BMRN:

BioMarin Pharmaceutical Inc. develops and commercializes biopharmaceuticals for serious diseases and medical conditions in the United States, Europe, Latin America, and internationally. Currently there are 11 analysts that rate Biomarin Pharmaceutical a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Biomarin Pharmaceutical has been 1.1 million shares per day over the past 30 days. Biomarin has a market cap of $11.6 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.39 and a short float of 6.9% with 2.18 days to cover. Shares are up 15.1% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Biomarin Pharmaceutical as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, BMRN's share price has jumped by 38.40%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 15.2%. Since the same quarter one year prior, revenues slightly increased by 6.8%. 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.
  • The gross profit margin for BIOMARIN PHARMACEUTICAL INC is currently very high, coming in at 88.69%. Regardless of BMRN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BMRN's net profit margin of -38.73% significantly underperformed when compared to the industry average.
  • BIOMARIN PHARMACEUTICAL INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, BIOMARIN PHARMACEUTICAL INC reported poor results of -$0.95 versus -$0.48 in the prior year. For the next year, the market is expecting a contraction of 24.8% in earnings (-$1.19 versus -$0.95).
  • 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 889.7% when compared to the same quarter one year ago, falling from -$5.36 million to -$53.02 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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