New Lifetime High Reached: McGraw Hill Financial (MHFI)
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 McGraw Hill Financial as such a stock due to the following factors:
- MHFI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $143.9 million.
- MHFI has traded 29,085 shares today.
- MHFI is trading at a new lifetime high.
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More details on MHFI:
McGraw Hill Financial, Inc. provides benchmarks and ratings, analytics, data, and research services for the capital, commodities, and commercial markets worldwide. The stock currently has a dividend yield of 1.3%. Currently there are 8 analysts that rate McGraw Hill Financial a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for McGraw Hill Financial has been 1.5 million shares per day over the past 30 days. McGraw Hill Financial has a market cap of $28.7 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.69 and a short float of 1.1% with 2.23 days to cover. Shares are up 17.2% year-to-date as of the close of trading on Friday.
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Analysis:
rates McGraw Hill Financial as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.
Highlights from the ratings report include:
- MHFI's revenue growth has slightly outpaced the industry average of 2.4%. Since the same quarter one year prior, revenues slightly increased by 7.0%. 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.
- Compared to its closing price of one year ago, MHFI's share price has jumped by 28.15%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- The gross profit margin for MCGRAW HILL FINANCIAL is rather high; currently it is at 67.29%. 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 -65.58% is in-line with the industry average.
- Currently the debt-to-equity ratio of 1.64 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with the unfavorable debt-to-equity ratio, MHFI maintains a poor quick ratio of 0.87, which illustrates the inability to avoid short-term cash problems.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Diversified Financial Services industry and the overall market, MCGRAW HILL FINANCIAL's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full McGraw Hill Financial Ratings Report.
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