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"We rate FLUIDIGM CORP (FLDM) 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, expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- FLDM's very impressive revenue growth greatly exceeded the industry average of 25.4%. Since the same quarter one year prior, revenues leaped by 62.0%. 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 gross profit margin for FLUIDIGM CORP is currently very high, coming in at 74.95%. Regardless of FLDM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, FLDM's net profit margin of -46.53% significantly underperformed when compared to the industry average.
- In its most recent trading session, FLDM has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Life Sciences Tools & Services industry. The net income has significantly decreased by 221.7% when compared to the same quarter one year ago, falling from -$4.29 million to -$13.79 million.
- Net operating cash flow has significantly decreased to -$8.86 million or 577.59% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: FLDM Ratings Report