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 McGraw Hill Financial as such a stock due to the following factors:
- MHFI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $132.6 million.
- MHFI has traded 500 shares today.
- MHFI is trading at a new lifetime high.
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More details on MHFI:
McGraw Hill Financial, Inc., a financial intelligence company, provides credit ratings, benchmarks, and analytics to capital and commodity markets worldwide. The stock currently has a dividend yield of 1.4%. MHFI has a PE ratio of 25.1. Currently there are 7 analysts that rate McGraw Hill Financial a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for McGraw Hill Financial has been 1.2 million shares per day over the past 30 days. McGraw Hill Financial has a market cap of $23.2 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.13 and a short float of 1.2% with 2.24 days to cover. Shares are up 11.9% year-to-date as of the close of trading on Wednesday.
rates McGraw Hill Financial as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 11.3%. Since the same quarter one year prior, revenues slightly increased by 9.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The gross profit margin for MCGRAW HILL FINANCIAL is rather high; currently it is at 68.49%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 15.12% is above that of the industry average.
- Net operating cash flow has significantly increased by 110.61% to $377.00 million when compared to the same quarter last year. In addition, MCGRAW HILL FINANCIAL has also vastly surpassed the industry average cash flow growth rate of 0.71%.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full McGraw Hill Financial Ratings Report.