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 Ellie Mae as such a stock due to the following factors:
- ELLI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.7 million.
- ELLI has traded 1,718 shares today.
- ELLI is trading at a new lifetime high.
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More details on ELLI:
Ellie Mae, Inc. provides on-demand software solutions and services for the residential mortgage industry in the United States. ELLI has a PE ratio of 105.4. Currently there are 3 analysts that rate Ellie Mae a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Ellie Mae has been 249,000 shares per day over the past 30 days. Ellie Mae has a market cap of $1.0 billion and is part of the technology sector and computer software & services industry. The stock has a beta of -0.31 and a short float of 16.7% with 13.09 days to cover. Shares are up 43.2% year-to-date as of the close of trading on Tuesday.
rates Ellie Mae as a
. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Software industry average. The net income increased by 18.2% when compared to the same quarter one year prior, going from $3.69 million to $4.36 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 25.7%. Since the same quarter one year prior, revenues rose by 16.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- ELLI's debt-to-equity ratio is very low at 0.00 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 4.25, which clearly demonstrates the ability to cover short-term cash needs.
- 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 26.72% 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.
- ELLIE MAE INC has improved earnings per share by 15.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ELLIE MAE INC reported lower earnings of $0.45 versus $0.76 in the prior year. This year, the market expects an improvement in earnings ($0.99 versus $0.45).
- You can view the full Ellie Mae Ratings Report.