New Lifetime High Today: Biomarin Pharmaceutical (BMRN)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Biomarin Pharmaceutical ( BMRN) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Biomarin Pharmaceutical as such a stock due to the following factors:

  • BMRN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $128.2 million.
  • BMRN has traded 279,294 shares today.
  • BMRN is trading at a new lifetime high.

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More details on BMRN:

BioMarin Pharmaceutical Inc. develops and commercializes pharmaceuticals for serious diseases and medical conditions in the United States, Europe, Latin America, and internationally. Currently there are 12 analysts that rate Biomarin Pharmaceutical a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Biomarin Pharmaceutical has been 1.4 million shares per day over the past 30 days. Biomarin has a market cap of $19.5 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.28 and a short float of 3.4% with 5.02 days to cover. Shares are up 34.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Biomarin Pharmaceutical as a hold. 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 solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 21.9%. Since the same quarter one year prior, revenues rose by 34.1%. 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.
  • BMRN's debt-to-equity ratio is very low at 0.27 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.95, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for BIOMARIN PHARMACEUTICAL INC is currently very high, coming in at 89.51%. Regardless of BMRN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BMRN's net profit margin of -33.20% significantly underperformed when compared to the industry average.
  • 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 Biotechnology industry. The net income has significantly decreased by 77.1% when compared to the same quarter one year ago, falling from -$38.12 million to -$67.50 million.
  • Net operating cash flow has significantly decreased to -$137.81 million or 412.80% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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