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 Francescas Holdings ( FRAN) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Francescas Holdings as such a stock due to the following factors:

  • FRAN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.5 million.
  • FRAN traded 85,793 shares today in the pre-market hours as of 8:39 AM, representing 10.6% of its average daily volume.

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More details on FRAN:

Francesca's Holdings Corporation, through its subsidiary, Francesca's Collections, Inc., operates a chain of retail boutiques. The company offers a selection of fashion apparel, jewelry, accessories, and gifts primarily for women between the ages of 18 and 35. FRAN has a PE ratio of 13.9. Currently there are 10 analysts that rate Francescas Holdings a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Francescas Holdings has been 1.0 million shares per day over the past 30 days. Francescas has a market cap of $576.2 million and is part of the services sector and retail industry. The stock has a beta of 2.06 and a short float of 26.7% with 9.21 days to cover. Shares are down 27% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Francescas Holdings as a hold. 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 and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • FRAN's revenue growth has slightly outpaced the industry average of 0.3%. Since the same quarter one year prior, revenues slightly increased by 8.1%. 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.
  • FRAN's debt-to-equity ratio is very low at 0.18 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, FRAN has a quick ratio of 1.87, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for FRANCESCAS HOLDINGS CORP is rather high; currently it is at 52.46%. Regardless of FRAN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, FRAN's net profit margin of 10.02% compares favorably to the industry average.
  • Net operating cash flow has decreased to $9.71 million or 19.67% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • 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 decreased by 21.7% when compared to the same quarter one year ago, dropping from $10.94 million to $8.56 million.

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