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 VeriFone Systems ( PAY) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified VeriFone Systems as such a stock due to the following factors:
- PAY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $51.9 million.
- PAY is up 2.5% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in PAY with the Ticky from Trade-Ideas. See the FREE profile for PAY NOW at Trade-Ideas More details on PAY: VeriFone Systems, Inc. designs, markets, and services electronic payment solutions at the point of sale (POS) worldwide. Currently there are 8 analysts that rate VeriFone Systems a buy, 1 analyst rates it a sell, and 3 rate it a hold. The average volume for VeriFone Systems has been 1.9 million shares per day over the past 30 days. VeriFone Systems has a market cap of $3.3 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 1.75 and a short float of 5.7% with 3.48 days to cover. Shares are up 12.1% 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 VeriFone Systems as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, 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 deteriorating net income, disappointing return on equity and weak operating cash flow. Highlights from the ratings report include:
- Compared to its closing price of one year ago, PAY's share price has jumped by 43.82%, exceeding the performance of the broader market during that same time frame. Although PAY had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- The debt-to-equity ratio is somewhat low, currently at 0.93, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.95 is somewhat weak and could be cause for future problems.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 20.8%. Since the same quarter one year prior, revenues fell by 11.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the IT Services industry and the overall market, VERIFONE SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $54.93 million or 24.34% 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 VeriFone Systems 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.