New Lifetime High Reached: Catamaran (CTRX)

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

  • CTRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $156.4 million.
  • CTRX has traded 306,498 shares today.
  • CTRX is trading at a new lifetime high.

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More details on CTRX:

Catamaran Corporation provides pharmacy benefit management (PBM) services and healthcare information technology (HCIT) solutions to the healthcare benefits management industry in North America. The company operates in two segments, PBM and HCIT. CTRX has a PE ratio of 37. Currently there are 4 analysts that rate Catamaran a buy, no analysts rate it a sell, and 14 rate it a hold.

The average volume for Catamaran has been 4.3 million shares per day over the past 30 days. Catamaran has a market cap of $12.5 billion and is part of the health care sector and health services industry. The stock has a beta of 0.35 and a short float of 0.6% with 0.30 days to cover. Shares are up 16.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Catamaran as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • CTRX's revenue growth has slightly outpaced the industry average of 13.2%. Since the same quarter one year prior, revenues rose by 21.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CTRX's debt-to-equity ratio is very low at 0.26 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.29, which illustrates the ability to avoid short-term cash problems.
  • CATAMARAN CORP has improved earnings per share by 35.5% 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, CATAMARAN CORP increased its bottom line by earning $1.52 versus $1.27 in the prior year. This year, the market expects an improvement in earnings ($2.60 versus $1.52).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Providers & Services industry. The net income increased by 36.6% when compared to the same quarter one year prior, rising from $63.45 million to $86.69 million.
  • Net operating cash flow has slightly increased to $146.68 million or 8.11% when compared to the same quarter last year. In addition, CATAMARAN CORP has also modestly surpassed the industry average cash flow growth rate of 0.72%.

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