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 Impax Laboratories ( IPXL) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Impax Laboratories as such a stock due to the following factors:
- IPXL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.8 million.
- IPXL has traded 17,482 shares today.
- IPXL is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in IPXL with the Ticky from Trade-Ideas. See the FREE profile for IPXL NOW at Trade-Ideas More details on IPXL: Impax Laboratories, Inc., a specialty pharmaceutical company, develops, manufactures, and markets bioequivalent pharmaceutical products; and develops and markets branded products. The company operates through two segments, Global Pharmaceuticals Division and Impax Pharmaceutical Division. IPXL has a PE ratio of 3027.0. Currently there are 2 analysts that rate Impax Laboratories a buy, 2 analysts rate it a sell, and 4 rate it a hold. The average volume for Impax Laboratories has been 762,400 shares per day over the past 30 days. Impax has a market cap of $2.1 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.25 and a short float of 11.8% with 10.14 days to cover. Shares are up 20.3% 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 Impax Laboratories 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, expanding profit margins and solid stock price performance. 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:
- IPXL has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.14, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for IMPAX LABORATORIES INC is rather high; currently it is at 57.20%. Regardless of IPXL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, IPXL's net profit margin of 5.41% is significantly lower than the industry average.
- 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 Pharmaceuticals industry and the overall market, IMPAX LABORATORIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$17.08 million or 129.57% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full Impax Laboratories 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.