Trade-Ideas LLC identified

Beacon Roofing Supply

(

BECN

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Beacon Roofing Supply as such a stock due to the following factors:

  • BECN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.7 million.
  • BECN has traded 16,434 shares today.
  • BECN is trading at a new lifetime high.

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More details on BECN:

Beacon Roofing Supply, Inc. distributes residential and non-residential roofing materials to contractors, home builders, building owners, and other resellers. BECN has a PE ratio of 34. Currently there are 5 analysts that rate Beacon Roofing Supply a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Beacon Roofing Supply has been 312,000 shares per day over the past 30 days. Beacon Roofing Supply has a market cap of $1.9 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.55 and a short float of 5.7% with 4.96 days to cover. Shares are up 38% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Beacon Roofing Supply as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 2.4%. Since the same quarter one year prior, revenues slightly increased by 8.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Trading Companies & Distributors industry. The net income increased by 5.8% when compared to the same quarter one year prior, going from $26.80 million to $28.35 million.
  • Net operating cash flow has increased to -$51.26 million or 38.12% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 1.14%.
  • The current debt-to-equity ratio, 0.34, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.90 is somewhat weak and could be cause for future problems.
  • 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 33.89% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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