Mattress Firm (MFRM) Reaches New Lifetime High Today

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 Mattress Firm ( MFRM) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Mattress Firm as such a stock due to the following factors:

  • MFRM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.7 million.
  • MFRM has traded 13,645 shares today.
  • MFRM is trading at a new lifetime high.

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More details on MFRM:

Mattress Firm Holding Corp., through its subsidiaries, operates as a specialty retailer of mattresses, and related products and accessories in the United States. MFRM has a PE ratio of 33.3. Currently there are 7 analysts that rate Mattress Firm a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Mattress Firm has been 203,800 shares per day over the past 30 days. Mattress Firm has a market cap of $1.6 billion and is part of the services sector and specialty retail industry. The stock has a beta of 1.39 and a short float of 15.6% with 17.67 days to cover. Shares are up 10.5% year-to-date as of the close of trading on Thursday.

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 Mattress Firm as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 0.3%. Since the same quarter one year prior, revenues rose by 20.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • MATTRESS FIRM HOLDING CORP's earnings per share declined by 37.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MATTRESS FIRM HOLDING CORP increased its bottom line by earning $1.54 versus $1.18 in the prior year. This year, the market expects an improvement in earnings ($1.94 versus $1.54).
  • 39.09% is the gross profit margin for MATTRESS FIRM HOLDING CORP which we consider to be strong. Regardless of MFRM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.30% trails the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Specialty Retail industry. The net income has significantly decreased by 35.7% when compared to the same quarter one year ago, falling from $12.01 million to $7.72 million.
  • Net operating cash flow has significantly decreased to $7.13 million or 55.34% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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