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 GrafTech International ( GTI) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified GrafTech International as such a stock due to the following factors:
- GTI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $25.1 million.
- GTI has traded 111,887 shares today.
- GTI is down 3.1% today.
- GTI was up 9.1% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in GTI with the Ticky from Trade-Ideas. See the FREE profile for GTI NOW at Trade-Ideas More details on GTI: GrafTech International Ltd. manufactures and sells graphite and carbon-based solutions. It operates in two segments, Industrial Materials and Engineered Solutions. GTI has a PE ratio of 43.1. Currently there are no analysts that rate GrafTech International a buy, 1 analyst rates it a sell, and 2 rate it a hold. The average volume for GrafTech International has been 1.2 million shares per day over the past 30 days. GrafTech International has a market cap of $1.3 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.63 and a short float of 31.1% with 7.93 days to cover. Shares are down 7.9% year-to-date as of the close of trading on Thursday. 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 GrafTech International 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, good cash flow from operations and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity. Highlights from the ratings report include:
- The current debt-to-equity ratio, 0.42, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.01, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has increased to $53.53 million or 18.76% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -14.49%.
- GTI, with its decline in revenue, underperformed when compared the industry average of 7.4%. Since the same quarter one year prior, revenues slightly dropped by 5.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Electrical Equipment industry and the overall market, GRAFTECH INTERNATIONAL LTD's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for GRAFTECH INTERNATIONAL LTD is rather low; currently it is at 21.94%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -2.51% is significantly below that of the industry average.
- You can view the full GrafTech International 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.