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 McDermott International as such a stock due to the following factors:
- MDR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $54.0 million.
- MDR is up 2.1% today from today's close.
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More details on MDR:
McDermott International, Inc. operates as an engineering, procurement, construction, and installation (EPCI) company worldwide. The company operates in three segments: Asia Pacific, Atlantic, and the Middle East. It focuses on designing and executing complex offshore oil and gas projects. MDR has a PE ratio of 16.6. Currently there are 5 analysts that rate McDermott International a buy, 1 analyst rates it a sell, and 8 rate it a hold.
The average volume for McDermott International has been 4.4 million shares per day over the past 30 days. McDermott International has a market cap of $1.7 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.62 and a short float of 10.7% with 3.07 days to cover. Shares are up 17.8% year to date as of the close of trading on Tuesday.
rates McDermott International as a
. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- Net operating cash flow has significantly increased by 210.96% to $90.63 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 187.92%.
- MDR'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. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.72 is somewhat weak and could be cause for future problems.
- The revenue fell significantly faster than the industry average of 4.0%. Since the same quarter one year prior, revenues fell by 27.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- 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 Energy Equipment & Services industry. The net income has significantly decreased by 383.3% when compared to the same quarter one year ago, falling from $52.74 million to -$149.42 million.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Energy Equipment & Services industry and the overall market, MCDERMOTT INTL INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full McDermott International Ratings Report.