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

  • CATM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.7 million.
  • CATM has traded 165,343 shares today.
  • CATM is trading at a new lifetime high.

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More details on CATM:

Cardtronics, Inc. provides automated consumer financial services through its network of automated teller machines (ATMs) and multi-function financial services kiosks. CATM has a PE ratio of 34.8. Currently there are 7 analysts that rate Cardtronics a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Cardtronics has been 217,700 shares per day over the past 30 days. Cardtronics has a market cap of $1.7 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.31 and a short float of 2.6% with 5.09 days to cover. Shares are up 56.8% 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 Cardtronics as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, increase in net income, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 15.3%. Since the same quarter one year prior, revenues slightly increased by 8.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the IT Services industry. The net income increased by 58.6% when compared to the same quarter one year prior, rising from $9.66 million to $15.33 million.
  • Net operating cash flow has slightly increased to $38.97 million or 4.82% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -22.55%.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. 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.
  • CARDTRONICS 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, CARDTRONICS INC reported lower earnings of $0.96 versus $1.58 in the prior year. This year, the market expects an improvement in earnings ($1.86 versus $0.96).

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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