OraSure Technologies Inc. Stock Upgraded (OSUR)

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) -- OraSure Technologies (Nasdaq: OSUR) has been upgraded by TheStreet Ratings from sell to hold. 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 find that the growth in the company's earnings per share has not been good.

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Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 3.9%. Since the same quarter one year prior, revenues rose by 29.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • OSUR has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 5.59, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for ORASURE TECHNOLOGIES INC is rather high; currently it is at 65.26%. Regardless of OSUR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, OSUR's net profit margin of 21.59% compares favorably to the industry average.
  • ORASURE TECHNOLOGIES INC reported significant earnings per share improvement 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 year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, ORASURE TECHNOLOGIES INC continued to lose money by earning -$0.20 versus -$0.29 in the prior year. For the next year, the market is expecting a contraction of 72.5% in earnings (-$0.35 versus -$0.20).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, ORASURE TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.

OraSure Technologies, Inc., together with its subsidiaries, develops, manufactures, and markets oral fluid diagnostic products and specimen collection devices using its proprietary oral fluid technologies. OraSure has a market cap of $452 million and is part of the health care sector and health services industry. Shares are up 29.3% year to date as of the close of trading on Monday.

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

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