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TheStreet Ratings team rates HAEMONETICS CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate HAEMONETICS CORP (HAE) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The current debt-to-equity ratio, 0.52, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, HAE has a quick ratio of 1.70, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has slightly increased to $31.24 million or 6.41% when compared to the same quarter last year. In addition, HAEMONETICS CORP has also modestly surpassed the industry average cash flow growth rate of 1.27%.
- The gross profit margin for HAEMONETICS CORP is rather high; currently it is at 58.07%. Regardless of HAE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, HAE's net profit margin of 3.29% is significantly lower than the industry average.
- HAEMONETICS CORP 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. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, HAEMONETICS CORP reported lower earnings of $0.67 versus $0.75 in the prior year. This year, the market expects an improvement in earnings ($1.90 versus $0.67).
- HAE, with its decline in revenue, underperformed when compared the industry average of 7.1%. Since the same quarter one year prior, revenues slightly dropped by 3.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full analysis from the report here: HAE Ratings Report