NEW YORK (TheStreet) -- Shares of Versar Inc (VSR) are soaring 32.22% to $4.76 in midday trading Tuesday as the Ebola protective gear maker continues to climb with the possible spread of the virus continuing to be a concern, according to Reuters.
The World Health Organization (WHO) issued a warning today saying the death rate in the Ebola outbreak has risen to 70% and there could be up to 10,000 new cases a week in two months, the Associated Press reports.
The WHO also said today the number of new Ebola cases in the hardest-hit areas is declining, but the virus continues to spread throughout a wider geographical region, such as the Ivory Coast border, and throughout some capital cities in Africa.
The WHO added there has been 8,914 suspected or confirmed Ebola cases and 4,447 deaths, making the trend "relatively flat" at approximately 1,000 new cases per week for the last three to four weeks, according to the WHO assistant director general.
Separately, TheStreet Ratings team rates VERSAR INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate VERSAR INC (VSR) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- VSR's debt-to-equity ratio is very low at 0.03 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, VSR has a quick ratio of 2.03, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has significantly increased by 395.76% to $4.10 million when compared to the same quarter last year. In addition, VERSAR INC has also vastly surpassed the industry average cash flow growth rate of -4.19%.
- VSR, with its decline in revenue, slightly underperformed the industry average of 4.5%. Since the same quarter one year prior, revenues slightly dropped by 0.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Commercial Services & Supplies industry and the overall market, VERSAR INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for VERSAR INC is currently extremely low, coming in at 2.00%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -3.87% is significantly below that of the industry average.
- You can view the full analysis from the report here: VSR Ratings Report