Lagging In Post-Market Activity: Mylan (MYL)

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.

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

  • MYL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $1.0 billion.
  • MYL is down 2.5% today from today's close.

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More details on MYL:

Mylan N.V., through its subsidiaries, develops, licenses, manufactures, markets, and distributes generic, branded generic, and specialty pharmaceuticals worldwide. MYL has a PE ratio of 31.6. Currently there are 8 analysts that rate Mylan a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Mylan has been 8.5 million shares per day over the past 30 days. Mylan has a market cap of $36.2 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.82 and a short float of 6.4% with 1.82 days to cover. Shares are up 31.1% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Mylan as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, solid stock price performance, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 11.1%. Since the same quarter one year prior, revenues rose by 15.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 42.30% over the past year, a rise that has exceeded that of the S&P 500 Index. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Pharmaceuticals industry and the overall market, MYLAN NV's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • MYLAN NV's earnings per share improvement from the most recent quarter was slightly positive. 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, MYLAN NV increased its bottom line by earning $2.34 versus $1.58 in the prior year. This year, the market expects an improvement in earnings ($4.17 versus $2.34).
  • The gross profit margin for MYLAN NV is rather high; currently it is at 56.01%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, MYL's net profit margin of 9.08% significantly trails the industry average.

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