TheStreet Wire Santarus Inc. Stock Upgraded (SNTS) By TheStreet Wire 08/27/12 - 05:07 AM EDT Ashenberg's Breakout Stocks: See if Bryan thinks (SNTS) has tremendous breakout potential
Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model
NEW YORK (TheStreet) -- Santarus (Nasdaq:SNTS) has been upgraded by TheStreet Ratings from hold to buy. 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, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
ACTIVE STOCK TRADERS: Check out TheStreet's special offer for Real Money, headlined by Jim Cramer, now!
Highlights from the ratings report include:
SNTS's very impressive revenue growth greatly exceeded the industry average of 5.9%. Since the same quarter one year prior, revenues leaped by 77.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share. SNTS's debt-to-equity ratio is very low at 0.16 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, SNTS has a quick ratio of 1.88, which demonstrates the ability of the company to cover short-term liquidity needs. SANTARUS INC has improved earnings per share by 25.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, SANTARUS INC turned its bottom line around by earning $0.07 versus -$0.32 in the prior year. This year, the market expects an improvement in earnings ($0.14 versus $0.07). The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 27.4% when compared to the same quarter one year prior, rising from $2.71 million to $3.45 million. Net operating cash flow has significantly increased by 429.77% to $7.05 million when compared to the same quarter last year. In addition, SANTARUS INC has also vastly surpassed the industry average cash flow growth rate of 1.30%.
Santarus, Inc., a specialty biopharmaceutical company, engages in acquiring, developing, and commercializing proprietary products that address the needs of patients treated by physician specialists. The company has a P/E ratio of 70.1, above the average drugs industry P/E ratio of 65.2 and above the S&P 500 P/E ratio of 17.7. Santarus has a market cap of $410.5 million and is part of the health care sector and drugs industry. Shares are up 90.6% year to date as of the close of trading on Friday. You can view the full Santarus Ratings Report or get investment ideas from our investment research c
$200 milio in revs for 2012 is good enough for me vs a bit over $100 millio last year. Doubling my money from the $3's when you were panning the stock last year and sold your shares too early (per your postings from that era). BTW - Glu sales doubled in comparison to year ago 2nd quarter.
Future of this company isn't really about the Glu revs, but on the higher margin products; Uceris and Rhuconest, and Rif MMX. The Glu revs and Zegerid line are adding cash to the bottom line to fund future growth. Focus on the future, and I agree with some that this is/will be a buyout target at some point.
If we look at last presentation we see a specific situation. Glumetza is growing in total prescriptions and is flat in new prescriptions; i think that this is explained by price increase. Cycloset and Fenoglide are growing well (C better than F of course) but all these slides are old because we can't see the Q3 trend. So i have douts too, i always doubt, but the only certainty is that they know the sales and reaffirm the guidance. The problem was analyst expectations too high when, historically, best quarters are the last two.