Perilous Reversal Stock: Triumph Group (TGI)
Trade-Ideas LLC identified Triumph Group ( TGI) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Triumph Group as such a stock due to the following factors:
- TGI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $35.5 million.
- TGI has traded 99,847 shares today.
- TGI is down 3.6% today.
- TGI was up 7.4% yesterday.
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More details on TGI: Triumph Group, Inc. designs, engineers, manufactures, repairs, overhauls, and distributes aero structures, aircraft components, accessories, subassemblies, and systems worldwide. The stock currently has a dividend yield of 0.5%. TGI has a PE ratio of 15. Currently there are 6 analysts that rate Triumph Group a buy, no analysts rate it a sell, and 3 rate it a hold. The average volume for Triumph Group has been 754,800 shares per day over the past 30 days. Triumph Group has a market cap of $1.7 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 1.63 and a short float of 8.5% with 4.17 days to cover. Shares are down 6.6% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Triumph Group as a
. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow. Highlights from the ratings report include:
- The debt-to-equity ratio is somewhat low, currently at 0.78, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Despite the fact that TGI's debt-to-equity ratio is low, the quick ratio, which is currently 0.65, displays a potential problem in covering short-term cash needs.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Aerospace & Defense industry and the overall market, TRIUMPH GROUP INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Aerospace & Defense industry. The net income has significantly decreased by 122.6% when compared to the same quarter one year ago, falling from -$39.83 million to -$88.65 million.
- You can view the full Triumph Group Ratings Report.
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