Bemis (BMS) Hits New Lifetime High

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

  • BMS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $83.4 million.
  • BMS has traded 6,000 shares today.
  • BMS is trading at a new lifetime high.

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More details on BMS:

Bemis Company, Inc. manufactures and sells packaging products and pressure sensitive materials in North America, Latin America, Europe, and the Asia-Pacific. The company operates in three segments: U.S. Packaging, Global Packaging, and Pressure Sensitive Materials. The stock currently has a dividend yield of 2.4%. BMS has a PE ratio of 17.9. Currently there is 1 analyst that rates Bemis a buy, 1 analyst rates it a sell, and 7 rate it a hold.

The average volume for Bemis has been 1.5 million shares per day over the past 30 days. Bemis has a market cap of $4.4 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.90 and a short float of 4.1% with 2.29 days to cover. Shares are up 8.1% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Bemis as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, impressive record of earnings per share growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The debt-to-equity ratio is somewhat low, currently at 0.91, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.10, which illustrates the ability to avoid short-term cash problems.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • BEMIS CO INC has improved earnings per share by 29.8% 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, BEMIS CO INC increased its bottom line by earning $1.91 versus $1.65 in the prior year. This year, the market expects an improvement in earnings ($2.29 versus $1.91).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Containers & Packaging industry and the overall market on the basis of return on equity, BEMIS CO INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • BMS, with its decline in revenue, underperformed when compared the industry average of 9.8%. Since the same quarter one year prior, revenues slightly dropped by 2.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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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