The CYRX "The Street Ratings" dated 1/31/2016
RECOMMENDATION
We rate CRYOPORT INC (CYRX) a SELL. This is based on several weak investment measures, which should drive this stock to significantly underperform the majority of stocks that we rate. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow, poor profit margins and generally disappointing historical performance in the stock itself.
HIGHLIGHTS
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 Health Care Equipment & Supplies industry. The net income has significantly decreased by 75.1% when compared to the same quarter one year ago,
falling from -$1.39 million to -$2.43 million.
Net operating cash flow has decreased to -$1.07 million or 24.47% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, CRYOPORT INC has marginally lower results. The gross profit margin for CRYOPORT INC is currently lower than what is desirable, coming in at 33.68%.
Regardless of CYRX's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, CYRX's net profit margin of -168.75% significantly underperformed when compared to the industry average.
CYRX's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 61.88%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed
to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, CRYOPORT INC's return on equity significantly trails that of both the industry average and the S&P 500.
