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 Edgen Group ( EDG) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Edgen Group as such a stock due to the following factors:
- EDG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.2 million.
- EDG has traded 355,722 shares today.
- EDG is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in EDG with the Ticky from Trade-Ideas. See the FREE profile for EDG NOW at Trade-Ideas More details on EDG: Edgen Group Inc., through its subsidiaries, distributes specialty steel products to the energy sector. The company offers steel plates, sections, pipes and structural beams, columns, channels, valves, and welded pipes. Edgen Group Inc. was founded in 2011 and is based in Baton Rouge, Louisiana. Currently there are 2 analysts that rate Edgen Group a buy, no analysts rate it a sell, and 1 rates it a hold. The average volume for Edgen Group has been 100,500 shares per day over the past 30 days. Edgen Group has a market cap of $149.3 million and is part of the services sector and wholesale industry. Shares are up 11.6% year to date as of the close of trading on Friday. 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 Edgen Group as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, generally higher debt management risk and poor profit margins. Highlights from the ratings report include:
- Powered by its strong earnings growth of 53.84% and other important driving factors, this stock has surged by 41.16% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Trading Companies & Distributors industry. The net income increased by 79.4% when compared to the same quarter one year prior, rising from -$5.31 million to -$1.09 million.
- EDGEN GROUP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, EDGEN GROUP INC reported poor results of -$0.89 versus -$0.01 in the prior year. This year, the market expects an improvement in earnings ($0.28 versus -$0.89).
- The debt-to-equity ratio is very high at 8.22 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, EDG's quick ratio is somewhat strong at 1.12, demonstrating the ability to handle short-term liquidity needs.
- Net operating cash flow has significantly decreased to -$25.56 million or 126.20% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full Edgen Group 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.