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) -- Opko Health (NYSE: OPK) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow and feeble growth in its earnings per share.
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- 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 30.2% when compared to the same quarter one year ago, falling from -$34.22 million to -$44.55 million.
- Net operating cash flow has significantly decreased to -$29.05 million or 96.98% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- OPKO HEALTH INC reported flat earnings per share in the most recent quarter. 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, OPKO HEALTH INC reported poor results of -$0.33 versus -$0.10 in the prior year. For the next year, the market is expecting a contraction of 12.1% in earnings (-$0.37 versus -$0.33).
- 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 Biotechnology industry and the overall market, OPKO HEALTH INC's return on equity significantly trails that of both the industry average and the S&P 500.
- 48.05% is the gross profit margin for OPKO HEALTH INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, OPK's net profit margin of -200.01% significantly underperformed when compared to the industry average.