Signet Jewelers (SIG) 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 Signet Jewelers as such a stock due to the following factors:
- SIG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $100.5 million.
- SIG has traded 1.1 million shares today.
- SIG is trading at a new lifetime high.
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More details on SIG:
Signet Jewelers Limited is engaged in the retail sale of jewelry and watches in the United States, the United Kingdom, the Republic of Ireland, and the Channel Islands. The company operates through US and UK divisions. The stock currently has a dividend yield of 0.6%. SIG has a PE ratio of 31.6. Currently there are 9 analysts that rate Signet Jewelers a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Signet Jewelers has been 705,700 shares per day over the past 30 days. Signet Jewelers has a market cap of $10.3 billion and is part of the services sector and specialty retail industry. The stock has a beta of 1.68 and a short float of 1% with 1.27 days to cover. Shares are down 3.2% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Signet Jewelers 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 and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- SIG's very impressive revenue growth greatly exceeded the industry average of 13.0%. Since the same quarter one year prior, revenues leaped by 54.2%. 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.
- The debt-to-equity ratio is somewhat low, currently at 0.60, 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 the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.03, which illustrates the ability to avoid short-term cash problems.
- SIGNET JEWELERS LTD has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SIGNET JEWELERS LTD increased its bottom line by earning $4.57 versus $4.36 in the prior year. This year, the market expects an improvement in earnings ($5.60 versus $4.57).
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- 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 Specialty Retail industry. The net income has significantly decreased by 103.9% when compared to the same quarter one year ago, falling from $33.60 million to -$1.30 million.
- You can view the full Signet Jewelers Ratings Report.
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