Myers Industries Inc.
) has put together strong operating performances for six
consecutive quarters, and its stock price is now hovering near its
52-week high. Shares of this polymer products company have
increased 33% year to date.
Furthermore, MYE became a Zacks #1 Rank (Strong Buy) on April 24,
five days after reporting its first quarter results.
First Quarter EPS Soars
Myers Industries posted first-quarter 2012 earnings of 30 cents per
share on April 19, which beat the Zacks Consensus Estimate of 23
cents, a 30.4% positive surprise. The result grew 50% from the
year-ago quarter. A favorable product mix and operational
efficiencies benefited the quarter.
Net sales inched up 1.7% to $198.8 million, mirroring a sales
increase across the Distribution and Engineered Products segment,
partially mitigated by lower sales at Material Handling and Lawn
& Garden. Gross profit rose 7.2% to $58 million and gross
margin expanded 150 basis points to 29.2%.
Estimates Flying High
The Zacks Consensus Estimates for 2012 and 2013 increased 13.6% and
5.9% to 92 cents and $1.08, respectively, in the last 60 days. The
current Zacks Consensus Estimate for 2012 suggests year-over-year
growth of 37.3%.
Valuation Stretched, Yet Lucrative
Myers Industries currently trades at a forward P/E of 18.4x,
reflecting a 41.4% premium to the peer group average of 13.0x.
Also, on a price-to-book basis, the shares trade at 2.6x, a 156.9%
premium to the peer group average of 1.0x.
The stock has a 12-month return on equity (ROE) of 12.5%, which is
well above its peer group average of 3.9%. This implies that the
company reinvests its earnings more efficiently than its peer
Chart Echoing Strength
Shares of Myers Industries had been trading in the range of $12.69
to $15.79 for the period between January 3 and April 4, 2012. It
broke that range on April 5 and started inching closer to its
52-week high of $17.54. Moreover, the stock is currently above its
50 and 200-day moving averages, which stand at $16.60 and $14.12,
respectively. In fact, the stock has been consistently trading
above its 200-day moving average since October 4, 2011. Also, it
has remained above the 50-day moving average since March 5, 2012.
Volume is fairly strong, averaging roughly 168K daily. Myers
Industries, which competes with Newell Rubbermaid Inc. (
) and Snap-on Inc. (
), has outperformed the S&P 500 performance over the past six
months. The year-to-date return for the stock is 36.1% compared
with the S&P 500's return of 6.0%.
Founded in 1933 and headquartered in Akron, Ohio, Myers Industries
produces polymer products catering to industrial, agricultural and
automotive sectors, as well as for commercial, and consumer
markets. The company also distributes tools, equipment and supplies
for the tire, wheel and undervehicle service industry. The company
reports through four operating segments: Material Handling, Lawn
& Garden, Distribution and Engineered Products.
MYERS INDS (MYE): Free Stock Analysis Report
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