Keurig Green Mountain (GMCR) Strong In Pre-Market Trading

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 Keurig Green Mountain ( GMCR) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Keurig Green Mountain as such a stock due to the following factors:

  • GMCR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $197.3 million.
  • GMCR traded 15,956 shares today in the pre-market hours as of 9:01 AM.
  • GMCR is up 5.1% today from yesterday's close.

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More details on GMCR:

Keurig Green Mountain, Inc. is engaged in the specialty coffee and coffeemaker businesses in the United States and Canada. The company operates through two segments, Domestic and Canada. The stock currently has a dividend yield of 0.8%. GMCR has a PE ratio of 31.6. Currently there are 6 analysts that rate Keurig Green Mountain a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for Keurig Green Mountain has been 2.0 million shares per day over the past 30 days. Keurig Green Mountain has a market cap of $19.1 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.82 and a short float of 10.1% with 6.05 days to cover. Shares are up 55.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Keurig Green Mountain as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • GMCR's revenue growth has slightly outpaced the industry average of 2.6%. Since the same quarter one year prior, revenues slightly increased by 5.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • GMCR's debt-to-equity ratio is very low at 0.08 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, GMCR has a quick ratio of 2.32, which demonstrates the ability of the company to cover short-term liquidity needs.
  • KEURIG GREEN MOUNTAIN INC has improved earnings per share by 23.7% 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, KEURIG GREEN MOUNTAIN INC increased its bottom line by earning $3.16 versus $2.28 in the prior year. This year, the market expects an improvement in earnings ($3.78 versus $3.16).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food Products industry. The net income increased by 33.4% when compared to the same quarter one year prior, rising from $116.27 million to $155.15 million.
  • 49.91% is the gross profit margin for KEURIG GREEN MOUNTAIN 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 15.17% is above that of the industry average.

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