Bio-Rad Laboratories Inc Stock Upgraded (BIO)

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) -- Bio-Rad Laboratories (NYSE: BIO) has been upgraded by TheStreet Ratings from hold to buy. 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, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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Highlights from the ratings report include:
  • BIO's revenue growth trails the industry average of 21.6%. Since the same quarter one year prior, revenues slightly increased by 2.2%. 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.
  • BIO's debt-to-equity ratio is very low at 0.19 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, BIO has a quick ratio of 2.14, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has significantly increased by 332.91% to $80.90 million when compared to the same quarter last year. In addition, BIO-RAD LABORATORIES INC has also vastly surpassed the industry average cash flow growth rate of 71.06%.
  • The gross profit margin for BIO-RAD LABORATORIES INC is rather high; currently it is at 62.14%. Regardless of BIO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 5.89% trails the industry average.
  • BIO-RAD LABORATORIES INC's earnings per share declined by 9.2% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, BIO-RAD LABORATORIES INC reported lower earnings of $2.69 versus $5.78 in the prior year. This year, the market expects an improvement in earnings ($3.97 versus $2.69).

Bio-Rad Laboratories, Inc. manufactures and supplies products and systems used to separate complex chemical and biological materials, as well as to identify, analyze, and purify their components for life science research, healthcare, analytical chemistry, and other markets. Bio-Rad has a market cap of $2.86 billion and is part of the health care sector and health services industry. Shares are down 3.5% year to date as of the close of trading on Tuesday.

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

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