Pinnacle Foods (PF) Hits New Lifetime High
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 Pinnacle Foods as such a stock due to the following factors:
- PF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $63.7 million.
- PF has traded 18,860 shares today.
- PF is trading at a new lifetime high.
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More details on PF:
Pinnacle Foods Inc., through its subsidiaries, manufactures, markets, and distributes branded convenience food products in North America. It operates through three segments: Birds Eye Frozen, Duncan Hines Grocery, and Specialty Foods. The stock currently has a dividend yield of 2.5%. PF has a PE ratio of 17.6. Currently there are 5 analysts that rate Pinnacle Foods a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Pinnacle Foods has been 844,200 shares per day over the past 30 days. Pinnacle has a market cap of $4.4 billion and is part of the consumer goods sector and food & beverage industry. Shares are up 9.8% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Pinnacle Foods as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and poor profit margins.
Highlights from the ratings report include:
- Compared to its closing price of one year ago, PF's share price has jumped by 32.69%, exceeding the performance of the broader market during that same time frame. Although PF had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- Net operating cash flow has increased to $138.09 million or 14.58% when compared to the same quarter last year. In addition, PINNACLE FOODS INC has also vastly surpassed the industry average cash flow growth rate of -37.39%.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 10.0%. Since the same quarter one year prior, revenues slightly dropped by 0.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The debt-to-equity ratio of 1.34 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, PF has a quick ratio of 0.60, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- The gross profit margin for PINNACLE FOODS INC is currently lower than what is desirable, coming in at 30.60%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 5.12% trails that of the industry average.
- You can view the full Pinnacle Foods Ratings Report.
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