New Lifetime High Today: Vail Resorts (MTN)

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

  • MTN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $25.1 million.
  • MTN has traded 1,438 shares today.
  • MTN is trading at a new lifetime high.

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More details on MTN:

Vail Resorts, Inc., through its subsidiaries, operates mountain resorts and urban ski areas in the United States. The company operates in three segments: Mountain, Lodging, and Real Estate. The stock currently has a dividend yield of 2.4%. MTN has a PE ratio of 36. Currently there are 3 analysts that rate Vail Resorts a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Vail Resorts has been 225,800 shares per day over the past 30 days. Vail has a market cap of $3.8 billion and is part of the services sector and leisure industry. The stock has a beta of 0.72 and a short float of 3.7% with 4.89 days to cover. Shares are up 15.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Vail Resorts as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 7.4%. Since the same quarter one year prior, revenues slightly increased by 6.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 46.07% is the gross profit margin for VAIL RESORTS INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 23.02% significantly outperformed against the industry average.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 13.1% when compared to the same quarter one year prior, going from $117.95 million to $133.41 million.
  • The debt-to-equity ratio is somewhat low, currently at 0.66, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.42 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • 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 41.93% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.

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