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.

Trade-Ideas LLC identified

Endurance International Group Holdings

(

EIGI

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Endurance International Group Holdings as such a stock due to the following factors:

  • EIGI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $36.2 million.
  • EIGI has traded 9,749 shares today.
  • EIGI is trading at a new lifetime high.

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More details on EIGI:

Endurance International Group Holdings, Inc., together with its subsidiaries, provides cloud-based platform solutions for small-and medium-sized businesses worldwide. Currently there are 5 analysts that rate Endurance International Group Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Endurance International Group Holdings has been 892,400 shares per day over the past 30 days. Endurance International Group has a market cap of $2.9 billion and is part of the technology sector and computer software & services industry. Shares are up 24% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Endurance International Group Holdings as a

sell

. Among the areas we feel are negative, one of the most important has been very high debt management risk by most measures.

Highlights from the ratings report include:

  • The debt-to-equity ratio is very high at 6.28 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.11, which clearly demonstrates the inability to cover short-term cash needs.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Internet Software & Services industry and the overall market, ENDURANCE INTL GRP HLDGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for ENDURANCE INTL GRP HLDGS INC is rather high; currently it is at 62.44%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -1.28% is in-line with the industry average.
  • Net operating cash flow has significantly increased by 754.59% to $38.37 million when compared to the same quarter last year. In addition, ENDURANCE INTL GRP HLDGS INC has also vastly surpassed the industry average cash flow growth rate of 27.05%.
  • This stock has increased by 85.55% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in EIGI do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

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