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 or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Franklin Electric as such a stock due to the following factors:
- FELE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.6 million.
- FELE has traded 457,034 shares today.
- FELE is trading at a new lifetime high.
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More details on FELE:
Franklin Electric Co., Inc., together with its subsidiaries, designs, manufactures, and distributes water and fuel pumping systems worldwide. It operates in two segments, Water Systems and Fueling Systems. The stock currently has a dividend yield of 0.7%. FELE has a PE ratio of 26.2. Currently there is 1 analyst that rates Franklin Electric a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Franklin Electric has been 147,300 shares per day over the past 30 days. Franklin Electric has a market cap of $2.1 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.33 and a short float of 2.7% with 5.87 days to cover. Shares are up 40.2% year-to-date as of the close of trading on Thursday.
rates Franklin Electric as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.1%. Since the same quarter one year prior, revenues slightly increased by 5.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The current debt-to-equity ratio, 0.33, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, FELE has a quick ratio of 1.80, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has increased to $60.62 million or 33.95% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 19.64%.
- 37.98% is the gross profit margin for FRANKLIN ELECTRIC CO INC which we consider to be strong. 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 10.03% trails the industry average.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 41.21% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- You can view the full Franklin Electric Ratings Report.