New Lifetime High For DepoMed (DEPO)
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
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified DepoMed as such a stock due to the following factors:
- DEPO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $53.0 million.
- DEPO has traded 27,043 shares today.
- DEPO is trading at a new lifetime high.
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More details on DEPO:
Depomed, Inc., a specialty pharmaceutical company, develops products for pain and other central nervous system conditions in the United States. DEPO has a PE ratio of 11.9. Currently there are 4 analysts that rate DepoMed a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for DepoMed has been 1.2 million shares per day over the past 30 days. DepoMed has a market cap of $1.5 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.67 and a short float of 15.2% with 4.22 days to cover. Shares are up 54.4% year-to-date as of the close of trading on Thursday.
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Analysis:
rates DepoMed as a
. 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, notable return on equity, attractive valuation levels and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- DEPO's very impressive revenue growth greatly exceeded the industry average of 10.3%. Since the same quarter one year prior, revenues leaped by 379.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.63, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with this, the company maintains a quick ratio of 10.29, which clearly demonstrates the ability to cover short-term cash needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Pharmaceuticals industry and the overall market, DEPOMED INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for DEPOMED INC is currently very high, coming in at 98.55%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 48.62% significantly outperformed against the industry average.
- You can view the full DepoMed Ratings Report.
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