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 post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Maxim Integrated Products as such a stock due to the following factors:
- MXIM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $75.0 million.
- MXIM is up 3% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in MXIM with the Ticky from Trade-Ideas. See the FREE profile for MXIM NOW at Trade-Ideas
More details on MXIM:
Maxim Integrated Products, Inc. designs, develops, manufactures, and markets various linear and mixed-signal integrated circuits worldwide. The company also provides a range of high-frequency process technologies and capabilities for use in custom designs. The stock currently has a dividend yield of 3.2%. MXIM has a PE ratio of 24.5. Currently there are 8 analysts that rate Maxim Integrated Products a buy, no analysts rate it a sell, and 11 rate it a hold.
The average volume for Maxim Integrated Products has been 2.8 million shares per day over the past 30 days. Maxim Integrated has a market cap of $9.2 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.74 and a short float of 2.3% with 2.27 days to cover. Shares are up 17.2% year-to-date as of the close of trading on Wednesday.
rates Maxim Integrated Products as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- MXIM's revenue growth has slightly outpaced the industry average of 1.5%. Since the same quarter one year prior, revenues slightly increased by 2.5%. 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 return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, MAXIM INTEGRATED PRODUCTS's return on equity exceeds that of both the industry average and the S&P 500.
- Despite currently having a low debt-to-equity ratio of 0.43, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 3.77 is very high and demonstrates very strong liquidity.
- MAXIM INTEGRATED PRODUCTS's earnings per share declined by 42.3% in the most recent quarter compared to 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, MAXIM INTEGRATED PRODUCTS increased its bottom line by earning $1.52 versus $1.17 in the prior year. This year, the market expects an improvement in earnings ($1.63 versus $1.52).
- The gross profit margin for MAXIM INTEGRATED PRODUCTS is rather high; currently it is at 64.68%. Regardless of MXIM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MXIM's net profit margin of 7.15% is significantly lower than the industry average.
- You can view the full Maxim Integrated Products Ratings Report.