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 Cash America International ( CSH) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Cash America International as such a stock due to the following factors:
- CSH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.5 million.
- CSH has traded 263,344 shares today.
- CSH is down 3.3% today.
- CSH was up 8% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in CSH with the Ticky from Trade-Ideas. See the FREE profile for CSH NOW at Trade-Ideas More details on CSH: Cash America International, Inc. provides specialty financial services to individuals through retail services locations and e-commerce activities. The company operates in two segments, Retail Services and E-Commerce. The stock currently has a dividend yield of 0.3%. CSH has a PE ratio of 8.8. Currently there are 3 analysts that rate Cash America International a buy, no analysts rate it a sell, and 4 rate it a hold. The average volume for Cash America International has been 356,400 shares per day over the past 30 days. Cash America International has a market cap of $1.2 billion and is part of the financial sector and financial services industry. Shares are up 24.4% year-to-date as of the close of trading on Monday. 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 Cash America International as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, expanding profit margins, impressive record of earnings per share growth and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Highlights from the ratings report include:
- The debt-to-equity ratio is somewhat low, currently at 0.68, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with this, the company maintains a quick ratio of 4.27, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for CASH AMERICA INTL INC is rather high; currently it is at 56.55%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 5.68% trails the industry average.
- CASH AMERICA INTL INC has improved earnings per share by 15.2% 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 year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, CASH AMERICA INTL INC increased its bottom line by earning $4.64 versus $3.40 in the prior year. For the next year, the market is expecting a contraction of 7.3% in earnings ($4.30 versus $4.64).
- CSH, with its decline in revenue, slightly underperformed the industry average of 4.5%. Since the same quarter one year prior, revenues slightly dropped by 2.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full Cash America 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.