Omnicare (OCR) Hits New Lifetime High Today

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

  • OCR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $119.5 million.
  • OCR has traded 25,541 shares today.
  • OCR is trading at a new lifetime high.

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More details on OCR:

Omnicare, Inc. operates as a healthcare services company that specializes in the management of pharmaceutical care in the United States. The stock currently has a dividend yield of 0.9%. OCR has a PE ratio of 58. Currently there is 1 analyst that rates Omnicare a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Omnicare has been 2.6 million shares per day over the past 30 days. Omnicare has a market cap of $9.3 billion and is part of the health care sector and health services industry. The stock has a beta of 0.47 and a short float of 11% with 8.59 days to cover. Shares are up 31.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Omnicare as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow.

Highlights from the ratings report include:
  • 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 54.6% when compared to the same quarter one year prior, rising from $21.97 million to $33.97 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 12.1%. Since the same quarter one year prior, revenues slightly increased by 7.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.73, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.95 is somewhat weak and could be cause for future problems.
  • The gross profit margin for OMNICARE INC is rather low; currently it is at 21.74%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.95% trails that of the industry average.
  • Net operating cash flow has significantly decreased to $94.09 million or 57.01% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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