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NEW YORK (TheStreet) -- Zeltiq Aesthetics (ZLTQ) has been upgraded by TheStreet Ratings from Sell to Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ZELTIQ AESTHETICS INC (ZLTQ) 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 robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- ZLTQ's very impressive revenue growth greatly exceeded the industry average of 3.7%. Since the same quarter one year prior, revenues leaped by 55.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ZLTQ has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, ZLTQ has a quick ratio of 2.22, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for ZELTIQ AESTHETICS INC is currently very high, coming in at 73.42%. Regardless of ZLTQ'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 10.47% trails the industry average.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, ZELTIQ AESTHETICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: ZLTQ Ratings Report