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 Vantiv as such a stock due to the following factors:
- VNTV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $35.5 million.
- VNTV has traded 1.1 million shares today.
- VNTV is trading at a new lifetime high.
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More details on VNTV:
Vantiv, Inc. provides electronic integrated payment processing services in the United States. It operates in two segments, Merchant Services and Financial Institution Services. VNTV has a PE ratio of 32.4. Currently there are 10 analysts that rate Vantiv a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for Vantiv has been 1.3 million shares per day over the past 30 days. Vantiv has a market cap of $3.9 billion and is part of the services sector and diversified services industry. Shares are up 30.3% year to date as of the close of trading on Friday.
rates Vantiv as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and generally higher debt management risk.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 19.8%. Since the same quarter one year prior, revenues rose by 10.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- VANTIV INC has improved earnings per share by 11.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, VANTIV INC increased its bottom line by earning $0.45 versus $0.12 in the prior year. This year, the market expects an improvement in earnings ($1.58 versus $0.45).
- 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 33.19% over the past year, a rise that has exceeded that of the S&P 500 Index. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
- The debt-to-equity ratio is very high at 3.08 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, VNTV's quick ratio is somewhat strong at 1.30, demonstrating the ability to handle short-term liquidity needs.
- Net operating cash flow has decreased to $142.58 million or 22.23% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, VANTIV INC has marginally lower results.
- You can view the full Vantiv Ratings Report.