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

MedAssets

(

MDAS

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified MedAssets as such a stock due to the following factors:

  • MDAS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $28.2 million.
  • MDAS traded 140,696 shares today in the pre-market hours as of 9:06 AM, representing 10.6% of its average daily volume.

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More details on MDAS:

MedAssets, Inc., a performance improvement company, provides technology-enabled products and services for hospitals, health systems, non-acute healthcare providers, payers, and other service providers and product manufacturers in the United States. Currently there are 6 analysts that rate MedAssets a buy, 2 analysts rate it a sell, and 11 rate it a hold.

The average volume for MedAssets has been 616,000 shares per day over the past 30 days. MedAssets has a market cap of $1.4 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.89 and a short float of 7.9% with 3.52 days to cover. Shares are up 17.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates MedAssets as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. 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:

  • MDAS's revenue growth trails the industry average of 33.8%. Since the same quarter one year prior, revenues slightly increased by 8.6%. 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.
  • Net operating cash flow has increased to $46.64 million or 41.09% when compared to the same quarter last year. In addition, MEDASSETS INC has also modestly surpassed the industry average cash flow growth rate of 33.17%.
  • The gross profit margin for MEDASSETS INC is currently very high, coming in at 75.77%. Regardless of MDAS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MDAS's net profit margin of 3.31% is significantly lower than the industry average.
  • Currently the debt-to-equity ratio of 1.85 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. To add to this, MDAS has a quick ratio of 0.53, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • 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 Health Care Technology industry and the overall market, MEDASSETS INC's return on equity significantly trails that of both the industry average and the S&P 500.

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