Trade-Ideas: Cinemark Holdings (CNK) 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 Cinemark Holdings ( CNK) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Cinemark Holdings as such a stock due to the following factors:

  • CNK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $19.9 million.
  • CNK has traded 867,294 shares today.
  • CNK is trading at a new lifetime high.

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More details on CNK:

Cinemark Holdings, Inc., together with its subsidiaries, engages in motion picture exhibition business. The company operates in the United States, Brazil, Mexico, Argentina, Chile, Colombia, Peru, Ecuador, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, and Guatemala. The stock currently has a dividend yield of 3.2%. CNK has a PE ratio of 27.8. Currently there are 8 analysts that rate Cinemark Holdings a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Cinemark Holdings has been 500,200 shares per day over the past 30 days. Cinemark has a market cap of $3.6 billion and is part of the services sector and media industry. The stock has a beta of 0.63 and a short float of 1.2% with 1.99 days to cover. Shares are up 18.7% year to date as of the close of trading on Monday.

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 Cinemark Holdings 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 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:
  • The revenue growth came in higher than the industry average of 0.7%. Since the same quarter one year prior, revenues rose by 11.7%. 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.
  • Despite the current debt-to-equity ratio of 1.94, it is still below the industry average, suggesting that this level of debt is acceptable within the Media industry. Despite the fact that CNK's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.56 is high and demonstrates strong liquidity.
  • Compared to its closing price of one year ago, CNK's share price has jumped by 38.28%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • CINEMARK HOLDINGS INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, CINEMARK HOLDINGS INC increased its bottom line by earning $1.47 versus $1.14 in the prior year. For the next year, the market is expecting a contraction of 0.7% in earnings ($1.46 versus $1.47).
  • The gross profit margin for CINEMARK HOLDINGS INC is rather low; currently it is at 23.69%. Regardless of CNK's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.79% trails the industry average.

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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