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TheStreet Ratings team rates HANGER INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate HANGER INC (HGR) a BUY. This is driven by several positive factors, 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 revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- HGR's revenue growth trails the industry average of 18.4%. Since the same quarter one year prior, revenues slightly increased by 3.0%. 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 debt-to-equity ratio is somewhat low, currently at 0.89, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, HGR has a quick ratio of 1.97, which demonstrates the ability of the company to cover short-term liquidity needs.
- Looking at the price performance of HGR's shares over the past 12 months, there is not much good news to report: the stock is down 30.19%, 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. Looking ahead, the stock's sharp decline over the past year may have been what was needed in order to bring its value into alignment with its fundamentals and others in its industry.
- The gross profit margin for HANGER INC is currently extremely low, coming in at 14.10%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 4.57% is above that of the industry average.
- Net operating cash flow has significantly decreased to $2.48 million or 90.26% 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: HGR Ratings Report