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 MeadWestvaco Corporation ( MWV) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified MeadWestvaco Corporation as such a stock due to the following factors:
- MWV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $25.1 million.
- MWV has traded 757,744 shares today.
- MWV is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in MWV with the Ticky from Trade-Ideas. See the FREE profile for MWV NOW at Trade-Ideas More details on MWV: MeadWestvaco Corporation provides packaging solutions to healthcare, beauty and personal care, food, beverage, home and garden, tobacco, and agricultural industries worldwide. The stock currently has a dividend yield of 2.6%. MWV has a PE ratio of 42.1. Currently there are 6 analysts that rate MeadWestvaco Corporation a buy, no analysts rate it a sell, and 3 rate it a hold. The average volume for MeadWestvaco Corporation has been 714,000 shares per day over the past 30 days. MeadWestvaco has a market cap of $6.8 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.13 and a short float of 2.3% with 4.64 days to cover. Shares are up 20.2% year to date as of the close of trading on Thursday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates MeadWestvaco Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 5.4%. Since the same quarter one year prior, revenues slightly increased by 0.8%. 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 debt-to-equity ratio is somewhat low, currently at 0.65, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.01, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has significantly increased by 113.97% to $199.00 million when compared to the same quarter last year. In addition, MEADWESTVACO CORP has also vastly surpassed the industry average cash flow growth rate of 27.15%.
- Compared to its closing price of one year ago, MWV's share price has jumped by 28.81%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- MEADWESTVACO CORP's earnings per share declined by 15.9% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, MEADWESTVACO CORP reported lower earnings of $1.21 versus $1.25 in the prior year. This year, the market expects an improvement in earnings ($1.40 versus $1.21).
- You can view the full MeadWestvaco Corporation Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.