Catamaran (CTRX) Marked As Today's Post-Market Laggard

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 Catamaran ( CTRX) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Catamaran as such a stock due to the following factors:

  • CTRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $56.6 million.
  • CTRX is down 2.5% today from today's close.

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More details on CTRX:

Catamaran Corporation provides pharmacy benefit management (PBM) services and healthcare information technology (HCIT) solutions to the healthcare benefits management industry in North America. The company operates in two segments: PBM and HCIT. CTRX has a PE ratio of 34.5. Currently there are 13 analysts that rate Catamaran a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Catamaran has been 1.3 million shares per day over the past 30 days. Catamaran has a market cap of $9.5 billion and is part of the health care sector and health services industry. The stock has a beta of -0.05 and a short float of 1.5% with 2.61 days to cover. Shares are down 4.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Catamaran as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • CTRX's very impressive revenue growth greatly exceeded the industry average of 16.0%. Since the same quarter one year prior, revenues leaped by 52.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CTRX's debt-to-equity ratio is very low at 0.29 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.24, which illustrates the ability to avoid short-term cash problems.
  • CATAMARAN CORP has improved earnings per share by 24.0% 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, CATAMARAN CORP increased its bottom line by earning $1.27 versus $0.73 in the prior year. This year, the market expects an improvement in earnings ($2.19 versus $1.27).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Health Care Providers & Services industry average. The net income increased by 23.4% when compared to the same quarter one year prior, going from $51.41 million to $63.45 million.
  • Net operating cash flow has significantly increased by 114.32% to $135.68 million when compared to the same quarter last year. In addition, CATAMARAN CORP has also vastly surpassed the industry average cash flow growth rate of 21.00%.

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