Trade-Ideas: Mellanox Technologies (MLNX) Is Today's "Perilous Reversal" Stock
- MLNX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $42.2 million.
- MLNX has traded 197,677 shares today.
- MLNX is down 3% today.
- MLNX was up 5% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in MLNX with the Ticky from Trade-Ideas. See the FREE profile for MLNX NOW at Trade-Ideas More details on MLNX: Mellanox Technologies, Ltd., a fabless semiconductor company, produces and supplies semiconductor interconnect products for computing, storage, and communications applications in the high-performance computing, Web 2.0, storage, financial services, database, cloud, and embedded markets. MLNX has a PE ratio of 27.8. Currently there are 3 analysts that rate Mellanox Technologies a buy, no analysts rate it a sell, and 8 rate it a hold. The average volume for Mellanox Technologies has been 715,900 shares per day over the past 30 days. Mellanox has a market cap of $1.5 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.57 and a short float of 13.5% with 4.51 days to cover. Shares are down 41.1% year to date as of the close of trading on Thursday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Mellanox Technologies as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and disappointing return on equity. Highlights from the ratings report include:
- MLNX's debt-to-equity ratio is very low at 0.01 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 5.75, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for MELLANOX TECHNOLOGIES LTD is currently very high, coming in at 75.21%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -1.77% is in-line with the industry average.
- MLNX, with its decline in revenue, underperformed when compared the industry average of 13.8%. Since the same quarter one year prior, revenues fell by 26.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Net operating cash flow has significantly decreased to $11.46 million or 80.62% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, MELLANOX TECHNOLOGIES LTD's return on equity is below that of both the industry average and the S&P 500.
- You can view the full Mellanox Technologies Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
Check Out Our Best Services for Investors
Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Check Out Our Best Services for Investors
Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.