New Lifetime High Reached By Lannett Incorporated (LCI)

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

  • LCI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.2 million.
  • LCI has traded 323,751 shares today.
  • LCI is trading at a new lifetime high.

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More details on LCI:

Lannett Company, Inc. develops, manufactures, packages, markets, and distributes generic versions of branded pharmaceutical products in the United States. It offers solid oral, extended release, topical, and oral solution finished dosage forms of drugs that address a range of therapeutic areas. LCI has a PE ratio of 52.0. Currently there are 4 analysts that rate Lannett Incorporated a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Lannett Incorporated has been 323,700 shares per day over the past 30 days. Lannett has a market cap of $831.8 million and is part of the health care sector and drugs industry. The stock has a beta of 1.41 and a short float of 2.8% with 1.78 days to cover. Shares are up 382.3% year to date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Lannett Incorporated 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, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • LCI's revenue growth has slightly outpaced the industry average of 2.8%. Since the same quarter one year prior, revenues rose by 12.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • LCI's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, LCI has a quick ratio of 2.34, which demonstrates the ability of the company to cover short-term liquidity needs.
  • LANNETT CO INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. 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, LANNETT CO INC increased its bottom line by earning $0.46 versus $0.14 in the prior year. This year, the market expects an improvement in earnings ($0.56 versus $0.46).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 151.8% when compared to the same quarter one year prior, rising from $1.42 million to $3.56 million.
  • Net operating cash flow has significantly increased by 103.59% to $13.13 million when compared to the same quarter last year. In addition, LANNETT CO INC has also vastly surpassed the industry average cash flow growth rate of -44.16%.

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