Boston, MA 10/28/2013 (wallstreetpr) – Cameron International Corporation (NYSE:CAM) provides the oil, gas and process industry with flow equipment products, systems and services globally. CAM is part of energy and basic materials industry. The company has a price-to-earnings ratio of 20. CAM has a buy rating from 16 equities analysts, one hold and it has no sell rating from any analyst.
Over the past 30 days, CAM has had a daily average volume of 2.6 million shares per day. The company has $13.11 billion in market cap and it has a short float of 2.1% in 1.15 days to cover. CAM’s shares are up 4% on year today as of last week’s closing. The basic materials company has multiple strengths which can be seen in areas such as solid financial position, strong revenue growth, reasonable debt levels, and rising stock price during the past 2 months. While the company has posted sub par net income growth, its potential outweighs such shortcomings.
Since a year ago, CAM has realized revenue growth of 11.4%. This growth exceeds the average industry average which is about 3.2% over the same period. However, the company has not had impressive earnings per share, indicating that the noted rise in revenue is yet to trickle down to its bottom. But the coming quarters look promising in terms of increased earnings per share considering the company’s strengths. The company’s successful debt management can be seen in its debt-to-equity ratio of 0.31 which is far below the industry average. CAM can also be seen to be safe from cash flow problems considering its quick ratio of 1.28. This is considered an adequate protection from short-term cash challenges.
While CAM has reported volatile earnings in its most recent past quarter, it looks poised for EPS increase in the coming quarters. This indicator can be illustrated by the company’s bottom line increase in the past fiscal year by posting $3.02 EPS in 2012 versus $2.09 in 2011. The market expects CAM to report EPS of $3.44, up from 3.02 in the previous fiscal year. As such, drop in the stocks price on Friday should be seen as a buying opportunity this week.