Trade-Ideas LLC identified

Solera Holdings

(

SLH

) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Solera Holdings as such a stock due to the following factors:

  • SLH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $125.3 million.
  • SLH is up 6.7% today from today's close.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in SLH with the Ticky from Trade-Ideas. See the FREE profile for SLH NOW at Trade-Ideas

More details on SLH:

Solera Holdings, Inc. provides software and services to insurance companies, collision repair facilities, independent assessors, automotive recyclers, auto dealers, and households. The stock currently has a dividend yield of 1.7%. SLH has a PE ratio of 57. Currently there are 7 analysts that rate Solera Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Solera Holdings has been 877,000 shares per day over the past 30 days. Solera has a market cap of $3.0 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.10 and a short float of 2% with 0.42 days to cover. Shares are down 19.4% year-to-date as of the close of trading on Monday.

TheStreet Recommends

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Solera Holdings as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 11.9%. Since the same quarter one year prior, revenues slightly increased by 7.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Software industry and the overall market, SOLERA HOLDINGS INC's return on equity exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for SOLERA HOLDINGS INC is rather high; currently it is at 65.84%. Regardless of SLH's high profit margin, it has managed to decrease from the same period last year.
  • The debt-to-equity ratio is very high at 6.09 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Regardless of the company's weak debt-to-equity ratio, SLH has managed to keep a strong quick ratio of 1.68, which demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has decreased to $71.42 million or 22.70% when compared to the same quarter last year. Despite a decrease in cash flow of 22.70%, SOLERA HOLDINGS INC is in line with the industry average cash flow growth rate of -29.21%.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.