IMS Health Holdings (IMS) 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.

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

  • IMS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $28.8 million.
  • IMS has traded 34,740 shares today.
  • IMS is trading at a new lifetime high.

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More details on IMS:

IMS Health Holdings, Inc. provides information and technology services to healthcare industry worldwide. IMS has a PE ratio of 82. Currently there are 11 analysts that rate IMS Health Holdings a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for IMS Health Holdings has been 865,800 shares per day over the past 30 days. IMS Health has a market cap of $10.0 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.13 and a short float of 5.8% with 3.36 days to cover. Shares are up 16.1% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates IMS Health Holdings as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and attractive valuation levels. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

Highlights from the ratings report include:
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Technology industry. The net income increased by 1341.7% when compared to the same quarter one year prior, rising from -$24.00 million to $298.00 million.
  • When compared to other companies in the Health Care Technology industry and the overall market, IMS HEALTH HOLDINGS INC's return on equity is below that of both the industry average and the S&P 500.
  • The revenue fell significantly faster than the industry average of 42.9%. Since the same quarter one year prior, revenues slightly dropped by 2.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The debt-to-equity ratio is very high at 2.21 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, IMS's quick ratio is somewhat strong at 1.41, demonstrating the ability to handle short-term liquidity needs.

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