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NEW YORK (TheStreet) -- Meridian Bioscience (VIVO) 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 MERIDIAN BIOSCIENCE INC (VIVO) 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 reasonable valuation levels, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The gross profit margin for MERIDIAN BIOSCIENCE INC is rather high; currently it is at 60.83%. Regardless of VIVO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, VIVO's net profit margin of 17.52% compares favorably to the industry average.
- VIVO, with its decline in revenue, underperformed when compared the industry average of 7.0%. Since the same quarter one year prior, revenues slightly dropped by 4.6%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- Looking at the price performance of VIVO's shares over the past 12 months, there is not much good news to report: the stock is down 29.12%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Health Care Equipment & Supplies industry average. The net income has decreased by 10.6% when compared to the same quarter one year ago, dropping from $9.15 million to $8.18 million.
- You can view the full analysis from the report here: VIVO Ratings Report