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NEW YORK (TheStreet) -- Hyperion Therapeutics (HPTX) has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate HYPERION THERAPEUTICS INC (HPTX) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, 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 analysis by TheStreet Ratings Team goes as follows:
- HPTX's very impressive revenue growth greatly exceeded the industry average of 43.5%. Since the same quarter one year prior, revenues leaped by 407.8%. 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.
- HPTX's debt-to-equity ratio is very low at 0.04 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.29, which clearly demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has significantly increased by 833.55% to $16.48 million when compared to the same quarter last year. In addition, HYPERION THERAPEUTICS INC has also vastly surpassed the industry average cash flow growth rate of 101.63%.
- The gross profit margin for HYPERION THERAPEUTICS INC is currently very high, coming in at 88.18%. Regardless of HPTX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, HPTX's net profit margin of 47.11% compares favorably to the industry average.
- You can view the full analysis from the report here: HPTX Ratings Report
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