Albany Molecular Research Inc Stock Downgraded (AMRI)

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) -- Albany Molecular Research (Nasdaq: AMRI) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and weak operating cash flow.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:
  • The current debt-to-equity ratio, 0.50, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 5.99, which clearly demonstrates the ability to cover short-term cash needs.
  • Compared to its closing price of one year ago, AMRI's share price has jumped by 44.42%, exceeding the performance of the broader market during that same time frame. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • 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 Life Sciences Tools & Services industry. The net income has significantly decreased by 46.2% when compared to the same quarter one year ago, falling from $6.51 million to $3.50 million.
  • Net operating cash flow has significantly decreased to -$8.07 million or 213.19% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

If you liked this article you might like

EY's Greene Sees More Med Tech, CRO Deals Ahead

Biotech Movers: Albany Molecular Shares Soar on Sale to PE Firms

Albany Molecular Research (AMRI) Is Weak On High Volume Today

Insider Trading Alert - MGRC, GUID And AMRI Traded By Insiders

Insider Trading Alert - NTGR, SCOR And AMRI Traded By Insiders