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NEW YORK (TheStreet) -- Ziopharm Oncology (ZIOP) 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 ZIOPHARM ONCOLOGY INC (ZIOP) 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 increase in stock price during the past year. 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:
- ZIOP's very impressive revenue growth greatly exceeded the industry average of 39.0%. Since the same quarter one year prior, revenues leaped by 216.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ZIOP 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. Along with this, the company maintains a quick ratio of 3.96, which clearly demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has increased to -$10.49 million or 32.31% when compared to the same quarter last year. Despite an increase in cash flow of 32.31%, ZIOPHARM ONCOLOGY INC is still growing at a significantly lower rate than the industry average of 111.30%.
- 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 Biotechnology industry and the overall market, ZIOPHARM ONCOLOGY 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: ZIOP Ratings Report
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