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 Cavium as such a stock due to the following factors:
- CAVM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $44.6 million.
- CAVM has traded 30,932 shares today.
- CAVM is trading at a new lifetime high.
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More details on CAVM:
Cavium, Inc. designs, develops, and markets semiconductor processors for intelligent and secure networks. The company operates through Semiconductor Products, and Software and Services segments. CAVM has a PE ratio of 1133.5. Currently there are 10 analysts that rate Cavium a buy, 1 analyst rates it a sell, and 4 rate it a hold.
The average volume for Cavium has been 840,300 shares per day over the past 30 days. Cavium has a market cap of $2.5 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.61 and a short float of 8.3% with 3.24 days to cover. Shares are up 34.7% year-to-date as of the close of trading on Friday.
rates Cavium 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 impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including premium valuation and weak operating cash flow.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 4.1%. Since the same quarter one year prior, revenues rose by 19.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- CAVM's debt-to-equity ratio is very low at 0.14 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.51, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for CAVIUM INC is currently very high, coming in at 72.97%. Regardless of CAVM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CAVM's net profit margin of 2.81% is significantly lower than the industry average.
- Net operating cash flow has significantly decreased to -$0.87 million or 110.30% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full Cavium Ratings Report.