Today's Dead Cat Bounce Stock: Abengoa Yield (ABY) - TheStreet

Trade-Ideas LLC identified

Abengoa Yield

(

ABY

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Abengoa Yield as such a stock due to the following factors:

  • ABY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.9 million.
  • ABY has traded 140,251 shares today.
  • ABY is up 3.1% today.
  • ABY was down 7.6% yesterday.

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More details on ABY:

Abengoa Yield plc owns a portfolio of renewable energy, conventional power, and electric transmission line contracted assets in North America, South America, and Europe. The stock currently has a dividend yield of 9.3%. Currently there are 3 analysts that rate Abengoa Yield a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Abengoa Yield has been 1.1 million shares per day over the past 30 days. Abengoa Yield has a market cap of $1.9 billion and is part of the utilities sector and utilities industry. Shares are down 37.5% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Abengoa Yield as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and generally high debt management risk.

Highlights from the ratings report include:

  • ABY's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 36.05%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • The debt-to-equity ratio is very high at 3.14 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Regardless of the company's weak debt-to-equity ratio, ABY has managed to keep a strong quick ratio of 1.54, which demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for ABENGOA YIELD PLC is currently very high, coming in at 74.17%. Regardless of ABY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 9.05% trails the industry average.
  • Compared to other companies in the Independent Power Producers & Energy Traders industry and the overall market on the basis of return on equity, ABENGOA YIELD PLC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • Net operating cash flow has significantly increased by 134.13% to $157.98 million when compared to the same quarter last year. In addition, ABENGOA YIELD PLC has also vastly surpassed the industry average cash flow growth rate of -39.78%.

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