B/E Aerospace (BEAV) Hits New Lifetime High

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 B/E Aerospace ( BEAV) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified B/E Aerospace as such a stock due to the following factors:

  • BEAV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $83.2 million.
  • BEAV has traded 6,778 shares today.
  • BEAV is trading at a new lifetime high.

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More details on BEAV:

B/E Aerospace, Inc. designs, manufactures, sells, and services cabin interior products for commercial aircraft and business jets in the United States and internationally. BEAV has a PE ratio of 25.0. Currently there are 13 analysts that rate B/E Aerospace a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for B/E Aerospace has been 1.0 million shares per day over the past 30 days. B/E has a market cap of $9.0 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 1.29 and a short float of 1.3% with 1.50 days to cover. Shares are down 0.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates B/E Aerospace as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, expanding profit margins, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • BEAV's revenue growth has slightly outpaced the industry average of 7.2%. Since the same quarter one year prior, revenues rose by 12.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • B/E AEROSPACE INC has improved earnings per share by 19.2% 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, B/E AEROSPACE INC increased its bottom line by earning $3.52 versus $2.27 in the prior year. This year, the market expects an improvement in earnings ($4.34 versus $3.52).
  • 40.44% is the gross profit margin for B/E AEROSPACE INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 10.03% is above that of the industry average.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 44.07% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Aerospace & Defense industry and the overall market on the basis of return on equity, B/E AEROSPACE INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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