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NEW YORK (TheStreet) -- Albany Molecular Research (AMRI) has been downgraded by TheStreet Ratings from Buy to Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALBANY MOLECULAR RESH INC (AMRI) 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 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 also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- AMRI's revenue growth trails the industry average of 23.2%. Since the same quarter one year prior, revenues slightly increased by 2.8%. 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.
- 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. To add to this, AMRI has a quick ratio of 1.56, which demonstrates the ability of the company to cover short-term liquidity needs.
- ALBANY MOLECULAR RESH INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ALBANY MOLECULAR RESH INC turned its bottom line around by earning $0.38 versus -$0.12 in the prior year. This year, the market expects an improvement in earnings ($0.88 versus $0.38).
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Life Sciences Tools & Services industry and the overall market, ALBANY MOLECULAR RESH INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for ALBANY MOLECULAR RESH INC is rather low; currently it is at 22.34%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -13.83% is significantly below that of the industry average.
- You can view the full analysis from the report here: AMRI Ratings Report