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 $36.7 million.
  • TGI has traded 299,004 shares today.
  • TGI is down 3.1% today.
  • TGI was up 19.1% 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 1. Currently there are 6 analysts that rate Triumph Group a buy, 2 analysts rate it a sell, and 3 rate it a hold.

The average volume for Triumph Group has been 615,900 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 1.49 and a short float of 4.8% with 2.51 days to cover. Shares are down 39% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Triumph Group as a

hold

. The company's strengths can be seen in multiple areas, such as its attractive 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 disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • The debt-to-equity ratio is somewhat low, currently at 0.71, 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 0.68, displays a potential problem in covering short-term cash needs.
  • The gross profit margin for TRIUMPH GROUP INC is rather low; currently it is at 22.90%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 6.45% trails that of the industry average.
  • Net operating cash flow has significantly decreased to -$30.07 million or 109.68% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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