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 strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Fibria Celulose as such a stock due to the following factors:
- FBR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.0 million.
- FBR is making at least a new 3-day high.
- FBR has a PE ratio of 27.4.
- FBR is mentioned 0.94 times per day on StockTwits.
- FBR has not yet been mentioned on StockTwits today.
- FBR is currently in the upper 20% of its 1-year range.
- FBR is in the upper 35% of its 20-day range.
- FBR is in the upper 45% of its 5-day range.
- FBR is currently trading above yesterday's high.
'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.
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More details on FBR:
Fibria Celulose S.A. is engaged in the production, sale, and export of short fiber pulp. The company primarily offers bleached eucalyptus kraft pulp used in the manufacture of toilet paper; uncoated and coated paper for printing and writing; and coated cardboard for packaging. FBR has a PE ratio of 27.4. Currently there are 2 analysts that rate Fibria Celulose a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Fibria Celulose has been 1.0 million shares per day over the past 30 days. Fibria Celulose has a market cap of $6.5 billion and is part of the consumer goods sector and consumer non-durables industry. Shares are down 4% year-to-date as of the close of trading on Wednesday.
rates Fibria Celulose as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and weak operating cash flow.
Highlights from the ratings report include:
- FIBRIA CELULOSE SA has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, FIBRIA CELULOSE SA continued to lose money by earning -$0.54 versus -$0.63 in the prior year. This year, the market expects an improvement in earnings ($0.28 versus -$0.54).
- The current debt-to-equity ratio, 0.58, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.82 is somewhat weak and could be cause for future problems.
- 42.58% is the gross profit margin for FIBRIA CELULOSE SA which we consider to be strong. Regardless of FBR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, FBR's net profit margin of -31.54% significantly underperformed when compared to the industry average.
- Net operating cash flow has decreased to $184.42 million or 11.00% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- 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 Paper & Forest Products industry. The net income has significantly decreased by 783.4% when compared to the same quarter one year ago, falling from $25.92 million to -$177.14 million.
- You can view the full Fibria Celulose Ratings Report.