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 pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Coach as such a stock due to the following factors:
- COH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $168.9 million.
- COH traded 10,148 shares today in the pre-market hours as of 7:30 AM.
- COH is up 2.8% today from Friday's close.
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More details on COH:
Coach, Inc. provides luxury accessories and lifestyle collections for women and men in the United States and internationally. The stock currently has a dividend yield of 3.8%. COH has a PE ratio of 12.4. Currently there are 6 analysts that rate Coach a buy, 2 analysts rate it a sell, and 11 rate it a hold.
The average volume for Coach has been 4.2 million shares per day over the past 30 days. Coach has a market cap of $9.9 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.30 and a short float of 10.2% with 6.10 days to cover. Shares are down 35.9% year-to-date as of the close of trading on Friday.
rates Coach 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, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow.
Highlights from the ratings report include:
- COH's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.31, which illustrates the ability to avoid short-term cash problems.
- The gross profit margin for COACH INC is currently very high, coming in at 73.91%. Regardless of COH'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 6.62% trails the industry average.
- 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 Textiles, Apparel & Luxury Goods industry. The net income has significantly decreased by 66.0% when compared to the same quarter one year ago, falling from $221.34 million to $75.28 million.
- Net operating cash flow has decreased to $316.07 million or 15.61% 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.
- You can view the full Coach Ratings Report.