Trade-Ideas: Sigma-Aldrich Corporation (SIAL) Is Today's New Lifetime High Stock

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 Sigma-Aldrich Corporation ( SIAL) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Sigma-Aldrich Corporation as such a stock due to the following factors:

  • SIAL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $47.3 million.
  • SIAL has traded 369,999 shares today.
  • SIAL is trading at a new lifetime high.

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More details on SIAL:

Manufactures and distributes a broad range of biochemicals, organic chemicals, diagnostic reagents and chromatography products. The stock currently has a dividend yield of 1%. SIAL has a PE ratio of 22.2. Currently there are 5 analysts that rate Sigma-Aldrich Corporation a buy, 2 analysts rate it a sell, and 7 rate it a hold.

The average volume for Sigma-Aldrich Corporation has been 534,800 shares per day over the past 30 days. Sigma-Aldrich has a market cap of $10.3 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 0.87 and a short float of 6.1% with 11.79 days to cover. Shares are up 16.2% 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 Sigma-Aldrich 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, growth in earnings per share and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 2.8%. Since the same quarter one year prior, revenues slightly increased by 2.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • SIAL's debt-to-equity ratio is very low at 0.16 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, SIAL has a quick ratio of 2.32, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has increased to $115.00 million or 40.24% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -7.60%.
  • SIGMA-ALDRICH CORP's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SIGMA-ALDRICH CORP increased its bottom line by earning $3.78 versus $3.72 in the prior year. This year, the market expects an improvement in earnings ($4.09 versus $3.78).
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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