Trade-Ideas: Vail Resorts (MTN) Is Today's New Lifetime High Stock
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 Vail Resorts as such a stock due to the following factors:
- MTN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $37.5 million.
- MTN has traded 11,577 shares today.
- MTN is trading at a new lifetime high.
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More details on MTN:
Vail Resorts, Inc., through its subsidiaries, operates mountain resorts and urban ski areas in the United States. The company operates in three segments: Mountain, Lodging, and Real Estate. The stock currently has a dividend yield of 2.5%. MTN has a PE ratio of 39.5. Currently there are 4 analysts that rate Vail Resorts a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Vail Resorts has been 239,300 shares per day over the past 30 days. Vail has a market cap of $3.6 billion and is part of the services sector and leisure industry. The stock has a beta of 0.70 and a short float of 2.6% with 2.14 days to cover. Shares are up 9.3% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Vail Resorts as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, good cash flow from operations, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. 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:
- The revenue growth came in higher than the industry average of 7.3%. Since the same quarter one year prior, revenues rose by 17.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 37.36% is the gross profit margin for VAIL RESORTS INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 21.83% is above that of the industry average.
- Net operating cash flow has significantly increased by 71.82% to $249.71 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 40.33%.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 95.3% when compared to the same quarter one year prior, rising from $59.26 million to $115.76 million.
- The debt-to-equity ratio is somewhat low, currently at 0.75, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.25 is very weak and demonstrates a lack of ability to pay short-term obligations.
- You can view the full Vail Resorts Ratings Report.
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