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 Yamana Gold ( AUY) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Yamana Gold as such a stock due to the following factors:
- AUY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $78.4 million.
- AUY has traded 3.0 million shares today.
- AUY is up 3.9% today.
- AUY was down 6% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in AUY with the Ticky from Trade-Ideas. See the FREE profile for AUY NOW at Trade-Ideas More details on AUY: Yamana Gold Inc. engages in the exploration, development, and production of mineral properties, primarily gold. It also explores for copper, molybdenum, zinc, and silver metals. The stock currently has a dividend yield of 2.6%. AUY has a PE ratio of 24.2. Currently there are 12 analysts that rate Yamana Gold a buy, 1 analyst rates it a sell, and 1 rates it a hold. The average volume for Yamana Gold has been 7.9 million shares per day over the past 30 days. Shares are down 42.3% 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 Yamana Gold as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income. Highlights from the ratings report include:
- AUY's debt-to-equity ratio is very low at 0.14 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that AUY's debt-to-equity ratio is low, the quick ratio, which is currently 0.56, displays a potential problem in covering short-term cash needs.
- The gross profit margin for YAMANA GOLD INC is rather high; currently it is at 53.24%. Regardless of AUY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 9.51% trails the industry average.
- AUY, with its decline in revenue, underperformed when compared the industry average of 3.2%. Since the same quarter one year prior, revenues fell by 25.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 27.5% when compared to the same quarter one year ago, falling from $59.96 million to $43.45 million.
- Net operating cash flow has significantly decreased to $99.08 million or 72.71% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full Yamana Gold 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.