FAST Graphs At-A-Glance

Rockwell Collins Inc: Fundamental Stock Research Analysis

Tue, 21 May 2013 15:45:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 2003. A quick glance vividly reveals the historical operating record of the company.

Rockwell Collins Inc (COL) is a pioneer in the development and deployment of innovative communication and aviation electronic solutions for both commercial and government applications.

This article will reveal the business prospects of Rockwell Collins Inc through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

A quick glance at the graph itself and the orange earnings justified valuation line will tell the readers volumes about how well the company has historically been managed and performed as an operating business. Simply put, the reader should ask whether this example is worthy of a greater investment of their time and effort based on the data as presented and organized. The FAST Graphs’ unique advantage is the graphical articulation of the price value proposition.

Earnings Determine Market Price: The following earnings and price correlated F.A.S.T. Graphs™ clearly illustrates the importance of earnings. The Earnings Growth Rate Line or True Worth™ Line (orange line with white triangles) is correlated with the historical stock price line. On graph after graph the lines will move in tandem. If the stock price strays away from the earnings line (over or under), inevitably it will come back to earnings.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on Rockwell Collins Inc shows a picture of slight undervaluation based upon the historical earnings growth rate of 12.7% and a current P/E of 14.6. Analysts are forecasting the earnings growth to continue at about 8.9%, and when you look at the forecasting graph below, the stock appears slightly undervalued (it’s inside of the value corridor of the five orange lines - based on future growth).

Rockwell Collins Inc: Historical Earnings, Price, Dividends and Normal P/E Since 2003

Performance Table Rockwell Collins Inc

The associated performance results with the earnings and price correlated graph, validates the principles regarding the two components of total return: capital appreciation and dividend income. Dividends are included in the total return calculation and are assumed paid, but not reinvested.

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 10.6% Annualized ROR (w/o Div) (green circle), long-term shareholders of Rockwell Collins Inc, assuming an initial investment of $10,000, would have received an additional $3,310.39 in total dividends paid (blue highlighting) that increased their Annualized ROR (w/o Div) from 10.6% to a Total Annualized ROR plus Dividends Paid of 11.9% versus 7.5% in the S&P 500.

The following graph plots the historical P/E ratio (the dark blue line) in conjunction with 10-year Treasury note interest. Notice that the current price earnings ratio on this quality company is as low as it has been since 2003.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for Rockwell Collins Inc is 1.93 which is historically normal.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The Estimated Earnings and Return Calculator Tool is a simple yet powerful resource that empowers the user to calculate and run various investing scenarios that generate precise rate of return potentialities. Thinking the investment through to its logical conclusion is an important component towards making sound and prudent commonsense investing decisions.

The consensus of 20 leading analysts reporting to Capital IQ forecast Rockwell Collins Inc’s long-term earnings growth at 8.9%. Rockwell Collins Inc has medium long-term debt at 34% of capital. Rockwell Collins Inc is currently trading at a P/E of 14.6, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 8.9%, Rockwell Collins Inc’s share price would $104.62 at the end of 2018 (brown circle on EYE Chart), which would represent a 10.5% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Discounted Future Cash Flows: All companies derive their value from the future cash flows (earnings) they are capable of generating for their stakeholders over time. Therefore, because Earnings Determine Market Price in the long run, we expect the future earnings of a company to justify the price we pay.

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in Rockwell Collins Inc to an equal investment in 10-year Treasury bonds illustrates that Rockwell Collins Inc’s expected earnings would be 5.3 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

This report presented essential “fundamentals at a glance” illustrating the past and present valuation based on earnings achievements as reported. Future forecasts for earnings growth are based on the consensus of leading analysts. Although with just a quick glance you can know a lot about the company, it’s imperative that the reader conducts their own due diligence in order to validate whether the consensus estimates seem reasonable or not.

Disclosure: No position at the time of writing.

Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation. A comprehensive due diligence effort is recommended.

Chicago Bridge & Iron Co: Fundamental Stock Research Analysis

Thu, 16 May 2013 16:33:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 1999. A quick glance vividly reveals the historical operating record of the company.

Chicago Bridge & Iron Co (CBI) is the most complete energy infrastructure focused company in the world and a major provider of government services.

This article will reveal the business prospects of Chicago Bridge & Iron Co through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings Determine Market Price: The following earnings and price correlated F.A.S.T. Graphs™ clearly illustrates the importance of earnings. The Earnings Growth Rate Line or True Worth™ Line (orange line with white triangles) is correlated with the historical stock price line. On graph after graph the lines will move in tandem. If the stock price strays away from the earnings line (over or under), inevitably it will come back to earnings.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on Chicago Bridge & Iron Co shows a picture of undervaluation based upon the historical earnings growth rate of 17.9% and a current P/E of 16.4. Analysts are forecasting the earnings growth to continue at about 14.5%, and when you look at the forecasting graph below, the stock appears slightly overvalued (it’s inside of the value corridor of the five orange lines - based on future growth).

Chicago Bridge & Iron Co: Historical Earnings, Price, Dividends and Normal P/E Since 1999

Performance Table Chicago Bridge & Iron Co

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 23.3% Annualized ROR (w/o Div) (green circle), long-term shareholders of Chicago Bridge & Iron Co, assuming an initial investment of $10,000, would have received an additional $4,958.22 in total dividends paid (blue highlighting) that increased their Annualized ROR (w/o Div) from 23.3% to a Total Annualized ROR plus Dividends Paid of 23.5% versus 2.9% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for Chicago Bridge & Iron Co is .86 which is historically normal.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 16 leading analysts reporting to Capital IQ forecast Chicago Bridge & Iron Co’s long-term earnings growth at 14.5%. Chicago Bridge & Iron Co has medium long-term debt at 46% of capital. Chicago Bridge & Iron Co is currently trading at a P/E of 16.4, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 14.5%, Chicago Bridge & Iron Co’s share price would $130.84 at the end of 2018 (brown circle on EYE Chart), which would represent a 15.9% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in Chicago Bridge & Iron Co to an equal investment in 10-year Treasury bonds illustrates that Chicago Bridge & Iron Co’s expected earnings would be 8 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

Disclosure: No position at the time of writing.

Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation. A comprehensive due diligence effort is recommended.

DICK’s Sporting Goods Inc: Fundamental Stock Research Analysis

Thu, 09 May 2013 18:48:00 GMT

DICK's Sporting Goods, Inc (DKS) is a Fortune 500 American corporation in the sporting goods and retail industries. The Company's headquarters is located in Coraopolis, Pennsylvania.

This article will reveal the business prospects of DICK’s Sporting Goods Inc through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings Determine Market Price: The following earnings and price correlated F.A.S.T. Graphs™ clearly illustrates the importance of earnings. The Earnings Growth Rate Line or True Worth™ Line (orange line with white triangles) is correlated with the historical stock price line. On graph after graph the lines will move in tandem. If the stock price strays away from the earnings line (over or under), inevitably it will come back to earnings.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on DICK’s Sporting Goods Inc shows a picture of in-value based upon the historical earnings growth rate of 18.7% and a current P/E of 19.2. Analysts are forecasting the earnings growth to continue at about 15%, and when you look at the forecasting graph below, the stock appears overvalued (it’s outside of the value corridor of the five orange lines - based on future growth).

DICK’s Sporting Goods Inc: Historical Earnings, Price, Dividends and Normal P/E Since 2002

Performance Table DICK’s Sporting Goods Inc

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 27.2% Annualized ROR (w/o Div) (green circle), long-term shareholders of DICK’s Sporting Goods Inc, assuming an initial investment of $10,000, would have received an additional $7,621.95 in total dividends paid (blue highlighting) that increased their Annualized ROR (w/o Div) from 27.2% to a Total Annualized ROR plus Dividends Paid of 27.9% versus 7.2% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for DICK’s Sporting Goods Inc is 1.09 which is historically normal.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 30 leading analysts reporting to Capital IQ forecast DICK’s Sporting Goods Inc’s long-term earnings growth at 15%. DICK’s Sporting Goods Inc has no long-term debt at 0% of capital. DICK’s Sporting Goods Inc is currently trading at a P/E of 19.2, which is above the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 15%, DICK’s Sporting Goods Inc’s share price would $86.58 at the end of 2018 (brown circle on EYE Chart), which would represent a 10.4% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in DICK’s Sporting Goods Inc to an equal investment in 10-year Treasury bonds illustrates that DICK’s Sporting Goods Inc’s expected earnings would be 6.4 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

Disclosure: No position at the time of writing.

Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation. A comprehensive due diligence effort is recommended.

BlackRock Inc: Fundamental Stock Research Analysis

Wed, 08 May 2013 18:43:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 2001. A quick glance vividly reveals the historical operating record of the company.

BlackRock Inc (BLK) is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide.

This article will reveal the business prospects of BlackRock Inc through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on BlackRock Inc shows a picture of undervaluation based upon the historical earnings growth rate of 20.9% and a current P/E of 18.8. Analysts are forecasting the earnings growth to continue at about 13.8%, and when you look at the forecasting graph below, the stock appears slightly overvalued (it’s outside of the value corridor of the five orange lines - based on future growth).

BlackRock Inc: Historical Earnings, Price, Dividends and Normal P/E Since 2001

Performance Table BlackRock Inc

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 16.4% Annualized ROR (w/o Div) (green circle), long-term shareholders of BlackRock Inc, assuming an initial investment of $10,000, would have received an additional $7,233.49 in total dividends paid (blue highlighting) that increased their Annualized ROR (w/o Div) from 16.4% to a Total Annualized ROR plus Dividends Paid of 17.4% versus 2.8% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for BlackRock Inc is 4.94 which is historically normal.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 21 leading analysts reporting to Capital IQ forecast BlackRock Inc’s long-term earnings growth at 13.8%. BlackRock Inc has low long-term debt at 22% of capital. BlackRock Inc is currently trading at a P/E of 18.8, which is above the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 13.8%, BlackRock Inc’s share price would $453.62 at the end of 2018 (brown circle on EYE Chart), which would represent a 11.5% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in BlackRock Inc to an equal investment in 10-year Treasury bonds illustrates that BlackRock Inc’s expected earnings would be 6.2 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

Disclosure: No position at the time of writing.

Deere: Fundamental Stock Research Analysis

Mon, 06 May 2013 17:43:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 2005. A quick glance vividly reveals the historical operating record of the company.

Deere & Co (DE) is a world leader in providing advanced products and services and is committed to the success of customers whose work is linked to the land - those who cultivate, harvest, transform, enrich and build upon the land to meet the world's dramatically increasing need for food, fuel, shelter and infrastructure.

This article will reveal the business prospects of Deere & Co through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on Deere & Co shows a picture of undervaluation based upon the historical earnings growth rate of 13.2% and a current P/E of 11.1. Analysts are forecasting the earnings growth to continue at about 10%, and when you look at the forecasting graph below, the stock appears undervalued (it’s outside of the value corridor of the five orange lines - based on future growth).

Deere & Co: Historical Earnings, Price, Dividends and Normal P/E Since 2005

Performance Table Deere & Co

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 11.3% Annualized ROR (w/o Div) (green circle), long-term shareholders of Deere & Co, assuming an initial investment of $10,000, would have received an additional $2,565.91 in total dividends paid (blue highlighting) that increased their Annualized ROR (w/o Div) from 11.3% to a Total Annualized ROR plus Dividends Paid of 12.6% versus 4.7% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for Deere & Co is .96 which is historically normal.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 22 leading analysts reporting to Capital IQ forecast Deere & Co’s long-term earnings growth at 10%. Deere & Co has high long-term debt at 75% of capital. Deere & Co is currently trading at a P/E of 11.1, which is below the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 10%, Deere & Co’s share price would 197.12 at the end of 2018 (brown circle on EYE Chart), which would represent a 16.8% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in Deere & Co to an equal investment in 10-year Treasury bonds illustrates that Deere & Co’s expected earnings would be 8.8 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

Disclosure: Long DE at the time of writing.

Oracle Corp: Fundamental Stock Research Analysis

Thu, 02 May 2013 16:45:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 1999. A quick glance vividly reveals the historical operating record of the company.

Oracle Corp (ORCL) engineers hardware and software to work together in the cloud and in your data center. For more information about Oracle, visit www.oracle.com.

This article will reveal the business prospects of Oracle Corp through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on Oracle Corp shows a picture of undervaluation based upon the historical earnings growth rate of 18.5% and a current P/E of 13.7. Analysts are forecasting the earnings growth to continue at about 10%, and when you look at the forecasting graph below, the stock appears undervalued (it’s inside of the value corridor of the five orange lines - based on future growth).

Oracle Corp: Historical Earnings, Price, Dividends and Normal P/E Since 1999

Performance Table Oracle Corp

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 11.2% Annualized ROR (w/o Div) (green circle), long-term shareholders of Oracle Corp, assuming an initial investment of $10,000, would have received an additional $1,391.27 in total dividends paid (blue highlighting) that increased their Annualized ROR (w/o Div) from 11.2% to a Total Annualized ROR plus Dividends Paid of 11.5% versus 2.9% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for Oracle Corp is 4.21 which is historically normal.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 42 leading analysts reporting to Capital IQ forecast Oracle Corp’s long-term earnings growth at 10%. Oracle Corp has medium long-term debt at 30% of capital. Oracle Corp is currently trading at a P/E of 13.7, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 10%, Oracle Corp’s share price would $58.70 at the end of 2018 (brown circle on EYE Chart), which would represent a 12.6% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in Oracle Corp to an equal investment in 10-year Treasury bonds illustrates that Oracle Corp’s expected earnings would be 7.2 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

Disclosure: Long ORCL at the time of writing.

Nu Skin Enterprises: Fundamental Stock Research Analysis

Wed, 01 May 2013 16:34:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 2002. A quick glance vividly reveals the historical operating record of the company.

Nu Skin Enterprises, Inc (NUS) demonstrates its tradition of innovation through its comprehensive anti-aging product portfolio, independent business opportunity and corporate social responsibility initiatives. The company’s scientific leadership in both skin care and nutrition has established Nu Skin as a premier anti-aging company, evidenced in its unique ageLOC® science that addresses aging at its source.

This article will reveal the business prospects of Nu Skin Enterprises through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on Nu Skin Enterprises shows a picture of undervaluation based upon the historical earnings growth rate of 17.2% and a current P/E of 13.4. Analysts are forecasting the earnings growth to continue at about 13.7%, and when you look at the forecasting graph below, the stock appears undervalued (it’s inside of the value corridor of the five orange lines - based on future growth).

Nu Skin Enterprises: Historical Earnings, Price, Dividends and Normal P/E Since 2002

Performance Table Nu Skin Enterprises

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 16.8% Annualized ROR (w/o Div) (green circle), long-term shareholders of Nu Skin Enterprises, assuming an initial investment of $10,000, would have received an additional $5,840.04 in total dividends paid (blue highlighting) that increased their Annualized ROR (w/o Div) from 16.8% to a Total Annualized ROR plus Dividends Paid of 17.8% versus 4.2% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for Nu Skin Enterprises is 1.37 which is historically normal.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 6 leading analysts reporting to Capital IQ forecast Nu Skin Enterprises’ long-term earnings growth at 13.7%. Nu Skin Enterprises has low long-term debt at 21% of capital. Nu Skin Enterprises is currently trading at a P/E of 13.4, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 13.7%, Nu Skin Enterprises’ share price would $113.59 at the end of 2018 (brown circle on EYE Chart), which would represent a 17% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in Nu Skin Enterprises to an equal investment in 10-year Treasury bonds illustrates that Nu Skin Enterprises’ expected earnings would be 9.2 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

Disclosure: No position at the time of writing.

Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation. A comprehensive due diligence effort is recommended.

Coach Inc: Fundamental Stock Research Analysis

Tue, 23 Apr 2013 16:12:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 2002. A quick glance vividly reveals the historical operating record of the company.

Coach Inc (COH) is a leading American marketer of fine accessories and gifts for women and men.

This article will reveal the business prospects of Coach Inc through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings Determine Market Price: The following earnings and price correlated FAST Graphs™ clearly illustrates the importance of earnings. The Earnings Growth Rate Line or True Worth™ Line (orange line with white triangles) is correlated with the historical stock price line. On graph after graph the lines will move in tandem. If the stock price strays away from the earnings line (over or under), inevitably it will come back to earnings.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on Coach Inc shows a picture of undervaluation based upon the historical earnings growth rate of 27.3% and a current P/E of 13.7. Analysts are forecasting the earnings growth to continue at about 13.5%, and when you look at the forecasting graph below, the stock appears undervalued (it’s inside of the value corridor of the five orange lines - based on future growth).

Coach Inc: Historical Earnings, Price, Dividends and Normal P/E Since 2002

Performance Table Coach Inc

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 23% Annualized ROR (w/o Div) (green circle), long-term shareholders of Coach Inc, assuming an initial investment of $10,000, would have received an additional $5,541.26 in total dividends paid (blue highlighting) that increased their Annualized ROR (w/o Div) from 23% to a Total Annualized ROR plus Dividends Paid of 23.5% versus 3.9% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for Coach Inc is 2.88 which is historically low.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 33 leading analysts reporting to Capital IQ forecast Coach Inc’s long-term earnings growth at 13.5%. Coach Inc has no long-term debt of capital. Coach Inc is currently trading at a P/E of 13.7, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 13.5 %, Coach Inc’s share price would $103.31 at the end of 2018 (brown circle on EYE Chart), which would represent a 16.8% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in Coach Inc to an equal investment in 10-year Treasury bonds illustrates that Coach Inc’s expected earnings would be 8 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

Disclosure: Long COH at the time of writing.

CSX Corp - Fundamental Stock Research Analysis

Fri, 19 Apr 2013 15:58:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 2001. A quick glance vividly reveals the historical operating record of the company.

CSX Corp (CSX) is one of the nation’s leading transportation companies, providing rail, intermodal and rail-to-truck transload services.

This article will reveal the business prospects of CSX Corp through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

We have previously written an article on CSX, you can find that by clicking here.

Earnings Determine Market Price: The following earnings and price correlated FAST Graphs™ clearly illustrates the importance of earnings. The Earnings Growth Rate Line or True Worth™ Line (orange line with white triangles) is correlated with the historical stock price line. On graph after graph the lines will move in tandem. If the stock price strays away from the earnings line (over or under), inevitably it will come back to earnings.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on CSX Corp shows a picture of undervaluation based upon the historical earnings growth rate of 21.2% and a current P/E of 13.5. Analysts are forecasting the earnings growth to continue at about 12.5%, and when you look at the forecasting graph below, the stock appears undervalued (it’s inside of the value corridor of the five orange lines - based on future growth).

CSX Corp: Historical Earnings, Price, Dividends and Normal P/E Since 2001

Performance Table CSX Corp

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 14.9% Annualized ROR (w/o Div) (green circle), long-term shareholders of CSX Corp, assuming an initial investment of $10,000, would have received an additional $6,242.77 in total dividends paid (blue highlighting) that increased their Annualized ROR (w/o Div) from 14.9% to a Total Annualized ROR plus Dividends Paid of 15.9% versus 2.5% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for CSX Corp is 2.07 which is historically normal.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 30 leading analysts reporting to Capital IQ forecast CSX Corp’s long-term earnings growth at 12.5%. CSX Corp has medium long-term debt at 49% of capital. CSX Corp is currently trading at a P/E of 13.5, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 12.5%, CSX Corp’s share price would $49.23 at the end of 2018 (brown circle on EYE Chart), which would represent a 15.4% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in CSX Corp to an equal investment in 10-year Treasury bonds illustrates that CSX Corp’s expected earnings would be 8.1 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

Disclosure: No position at the time of writing.

Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation. A comprehensive due diligence effort is recommended.

Archer Daniels Midland Co: Fundamental Stock Research Analysis

Thu, 18 Apr 2013 17:57:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The F.A.S.T. Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 2000. A quick glance vividly reveals the historical operating record of the company.

For more than a century, the people of Archer Daniels Midland Company (ADM) have transformed crops into products that serve vital needs. Today, 30,000 ADM employees around the globe convert oilseeds, corn, wheat and cocoa into products for food, animal feed, industrial and energy uses.

This article will reveal the business prospects of Archer Daniels Midland Co through the lens of F.A.S.T. Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

A quick glance at the graph itself and the orange earnings justified valuation line will tell the readers volumes about how well the company has historically been managed and performed as an operating business. Simply put, the reader should ask whether this example is worthy of a greater investment of their time and effort based on the data as presented and organized. The F.A.S.T. Graphs’ unique advantage is the graphical articulation of the price value proposition.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated F.A.S.T. Graphs™ on Archer Daniels Midland Co shows a picture of undervaluation based upon the historical earnings growth rate of 13.6% and a current P/E of 13.1. Analysts are forecasting the earnings growth to continue at about 10%, and when you look at the forecasting graph below, the stock appears undervalued (it’s inside of the value corridor of the five orange lines - based on future growth).

Archer Daniels Midland Co: Historical Earnings, Price, Dividends and Normal P/E Since 2000

Performance Table Archer Daniels Midland Co

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 8.4% Annualized ROR (w/o Div) (green circle), long-term shareholders of Archer Daniels Midland Co, assuming an initial investment of $10,000, would have received an additional $4,880.12 in total dividends paid (blue highlighting) that increased their Annualized ROR (w/o Div) from 8.4% to a Total Annualized ROR plus Dividends Paid of 9.6% versus 1.5% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for Archer Daniels Midland Co is .23 which is historically low.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 11 leading analysts reporting to Capital IQ forecast Archer Daniels Midland Co’s long-term earnings growth at 10%. Archer Daniels Midland Co has low long-term debt at 25% of capital. Archer Daniels Midland Co is currently trading at a P/E of 13.1, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 10 %, Archer Daniels Midland Co’s share price would $65.88 at the end of 2018 (brown circle on EYE Chart), which would represent a 16.7% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in Archer Daniels Midland Co to an equal investment in 10-year Treasury bonds illustrates that Archer Daniels Midland Co’s expected earnings would be 8 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

Disclosure: No positions at the time of writing.

Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation. A comprehensive due diligence effort is recommended.

UnitedHealth Group Inc: Fundamental Stock Research Analysis

Tue, 05 Mar 2013 18:41:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 1999. A quick glance vividly reveals the historical operating record of the company.

UnitedHealth Group (UNH) is a leading health care company, serving more than 75 million people worldwide.

This article will reveal the business prospects of UnitedHealth Group Inc through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings Determine Market Price: The following earnings and price FAST Graphs™ clearly illustrates the importance of earnings. The Earnings Growth Rate Line or True Worth™ Line (orange line with white triangles) is correlated with the historical stock price line. On graph after graph the lines will move in tandem. If the stock price strays away from the earnings line (over or under), inevitably it will come back to earnings.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on UnitedHealth Group Inc shows a picture of undervaluation based upon the historical earnings growth rate of 21.1% and a current P/E of 9.9. Analysts are forecasting the earnings growth to continue at about 11%, and when you look at the forecasting graph below, the stock appears undervalued (it’s outside of the value corridor of the five orange lines - based on future growth).

UnitedHealth Group Inc: Historical Earnings, Price, Dividends and Normal P/E Since 1999

Performance Table UnitedHealth Group Inc

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 17.5% capital appreciation (green circle), long-term shareholders of UnitedHealth Group Inc, assuming an initial investment of $1,000, would have received an additional $371.06 in dividends (blue highlighting) that increased their total return from 17.5% to 17.9% per annum versus 2.7% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for UnitedHealth Group Inc is .49 which is historically low.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 19 leading analysts reporting to Capital IQ forecast UnitedHealth Group Inc’s long-term earnings growth at 11%. UnitedHealth Group Inc has medium long-term debt at 30% of capital. UnitedHealth Group Inc is currently trading at a P/E of 9.9, which is below the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 11%, UnitedHealth Group Inc’s share price would $136.63 at the end of 2018 (brown circle on EYE Chart), which would represent a 18.5% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in UnitedHealth Group Inc to an equal investment in 10-year Treasury bonds illustrates that UnitedHealth Group Inc’s expected earnings would be 8.9 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

Disclosure: No position at the time of writing.

Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation. A comprehensive due diligence effort is recommended.

NewMarket Corp: Fundamental Stock Research Analysis

Thu, 28 Feb 2013 18:37:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 1999. A quick glance vividly reveals the historical operating record of the company.

NewMarket Corp (NEU) through its subsidiaries, Afton Chemical Corporation and Ethyl Corporation, develops, manufactures, blends, and delivers chemical additives that enhance the performance of petroleum products.

This article will reveal the business prospects of NewMarket Corp through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on NewMarket Corp shows a picture of undervaluation based upon the historical earnings growth rate of 12.6% and a current P/E of 13.9. Analysts are forecasting the earnings growth to continue at about 10.9%, and when you look at the forecasting graph below, the stock appears undervalued (it’s inside of the value corridor of the five orange lines - based on future growth).

NewMarket Corp: Historical Earnings, Price, Dividends and Normal P/E Since 1999

Performance Table NewMarket Corp

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 16.7% capital appreciation (green circle), long-term shareholders of NewMarket Corp, assuming an initial investment of $1,000, would have received an additional $1314.57 in dividends (blue highlighting) that increased their total return from 16.7% to 17.8% per annum versus 2.7% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for NewMarket Corp is 1.51 which is historically high.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 3 leading analysts reporting to Capital IQ forecast NewMarket Corp’s long-term earnings growth at 10.9%. NewMarket Corp has medium long-term debt at 51% of capital. NewMarket Corp is currently trading at a P/E of 13.9, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 10.9 %, NewMarket Corp’s share price would $454.60 at the end of 2018 (brown circle on EYE Chart), which would represent a 11.8% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in NewMarket Corp to an equal investment in 10-year Treasury bonds illustrates that NewMarket Corp’s expected earnings would be 6.3 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

For more information on how to interpret FAST Graphs™, please click here.

Disclosure: No position at the time of writing.

McKesson Corp: Fundamental Stock Research Analysis

Thu, 28 Feb 2013 16:32:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 2002. A quick glance vividly reveals the historical operating record of the company.

McKesson Corporation (MCK) is a healthcare services and information technology company.

This article will reveal the business prospects of McKesson Corp through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on McKesson Corp shows a picture of in-value based upon the historical earnings growth rate of 13.6% and a current P/E of 14.9. Analysts are forecasting the earnings growth to continue at about 15%, and when you look at the forecasting graph below, the stock appears in-value (it’s inside of the value corridor of the five orange lines - based on future growth).

McKesson Corp: Historical Earnings, Price, Dividends and Normal P/E Since 2002

Performance Table McKesson Corp

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 9.7% capital appreciation (green circle), long-term shareholders of McKesson Corp, assuming an initial investment of $1,000, would have received an additional $115.53 in dividends (blue highlighting) that increased their total return from 9.7% to 10.1% per annum versus 3.8% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for McKesson Corp is .20 which is historically normal.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 18 leading analysts reporting to Capital IQ forecast McKesson Corp’s long-term earnings growth at 15% . McKesson Corp has medium long-term debt at 34% of capital. McKesson Corp is currently trading at a P/E of 14.9, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 15%, McKesson Corp’s share price would $211.98 at the end of 2018 (brown circle on EYE Chart), which would represent a 15.4% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in McKesson Corp to an equal investment in 10-year Treasury bonds illustrates that McKesson Corp’s expected earnings would be 7.1 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

Disclosure: No position at the time of writing.

Corus Entertainment Inc: Fundamental Stock Research Analysis

Wed, 27 Feb 2013 19:26:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 2004. A quick glance vividly reveals the historical operating record of the company.

Canadian-based media and entertainment company Corus Entertainment Inc (CJR.B) is a market leader in specialty television and radio with additional assets in pay television, television broadcasting, children’s book publishing, children’s animation and animation software.

This article will reveal the business prospects of Corus Entertainment Inc through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings Determine Market Price: The following earnings and price correlated FAST Graphs™ clearly illustrates the importance of earnings. The Earnings Growth Rate Line or True Worth™ Line (orange line with white triangles) is correlated with the historical stock price line. On graph after graph the lines will move in tandem. If the stock price strays away from the earnings line (over or under), inevitably it will come back to earnings.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on Corus Entertainment Inc shows a picture of undervaluation based upon the historical earnings growth rate of 14.3% and a current P/E of 13. Analysts are forecasting the earnings growth to continue at about 8.5%, and when you look at the forecasting graph below, the stock appears undervalued (it’s inside of the value corridor of the five orange lines - based on future growth).

Corus Entertainment Inc: Historical Earnings, Price, Dividends and Normal P/E Since 2004

Performance Table Corus Entertainment Inc

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 6.7% capital appreciation (green circle), long-term shareholders of Corus Entertainment Inc, assuming an initial investment of $1,000, would have received an additional $338.91 in dividends (blue highlighting) that increased their total return from 6.7% to 8.7% per annum versus 4.7% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for Corus Entertainment Inc is 2.51 which is historically normal.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 8 leading analysts reporting to Capital IQ forecast Corus Entertainment Inc’s long-term earnings growth at 8.5%. Corus Entertainment Inc has medium long-term debt at 31% of capital. Corus Entertainment Inc is currently trading at a P/E of 13, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 8.5%, Corus Entertainment Inc’s share price would $44.66 at the end of 2018 (brown circle on EYE Chart), which would represent a 14.3% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in Corus Entertainment Inc to an equal investment in 10-year Treasury bonds illustrates that Corus Entertainment Inc’s expected earnings would be 5.9 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

For more information on how to interpret FAST Graphs™, please click here.

Disclosure: No position at the time of writing.

Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation. A comprehensive due diligence effort is recommended.

H&R Block Inc: Fundamental Stock Research Analysis

Wed, 27 Feb 2013 17:05:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 1999. A quick glance vividly reveals the historical operating record of the company.

This article will reveal the business prospects of H&R Block Inc (HRB) through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on H&R Block Inc shows a picture of in-value based upon the historical earnings growth rate of 8.3% and a current P/E of 15.3. Analysts are forecasting the earnings growth to continue at about 11%, and when you look at the forecasting graph below, the stock appears in value (it’s within of the value corridor of the five orange lines - based on future growth).

H&R Block Inc: Historical Earnings, Price, Dividends and Normal P/E Since 1999

Performance Table H&R Block Inc

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 5.7% capital appreciation (green circle), long-term shareholders of H&R Block Inc, assuming an initial investment of $1,000, would have received an additional $585.10 in dividends (blue highlighting) that increased their total return from 5.7% to 7.5% per annum versus 2.6% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for H&R Block Inc is 2.30 which is historically normal.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 7 leading analysts reporting to Capital IQ forecast H&R Block Inc’s long-term earnings growth at 11%. H&R Block Inc has medium long-term debt at 57% of capital. H&R Block Inc is currently trading at a P/E of 15.3, which is within the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 11 %, H&R Block Inc’s share price would $41.22 at the end of 2018 (brown circle on EYE Chart), which would represent a 13.6% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in H&R Block Inc to an equal investment in 10-year Treasury bonds illustrates that H&R Block Inc’s expected earnings would be 5.5 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

Disclosure: No position at the time of writing.

Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation. A comprehensive due diligence effort is recommended.

Foot Locker Inc: Fundamental Stock Research Analysis

Wed, 27 Feb 2013 16:31:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 2001. A quick glance vividly reveals the historical operating record of the company.

This article will reveal the business prospects of Foot Locker Inc (FL) through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on Foot Locker Inc shows a picture of undervaluation based upon the historical earnings growth rate of 11.2% and a current P/E of 12.8. Analysts are forecasting the earnings growth to continue at about 17.5%, and when you look at the forecasting graph below, the stock appears undervalued (it’s outside of the value corridor of the five orange lines - based on future growth).

Foot Locker Inc: Historical Earnings, Price, Dividends and Normal P/E Since 2001

Performance Table Foot Locker Inc

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 6.4% capital appreciation (green circle), long-term shareholders of Foot Locker Inc, assuming an initial investment of $1,000, would have received an additional $299.69 in dividends (blue highlighting) that increased their total return from 6.4% to 7.6% per annum versus 2.3% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for Foot Locker Inc is .83 which is historically high.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 17 leading analysts reporting to Capital IQ forecast Foot Locker Inc’s long-term earnings growth at 17.5%. Foot Locker Inc has low long-term debt at 5% of capital. Foot Locker Inc is currently trading at a P/E of 12.8, which is below the value corridor (defined by the five orange lines) of a maximum P/E of 21. If the earnings materialize as forecast, based upon forecasted earnings growth of 17.5%, Foot Locker Inc’s share price would $109.75 at the end of 2018 (brown circle on EYE Chart), which would represent a 23.6% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in Foot Locker Inc to an equal investment in 10-year Treasury bonds illustrates that Foot Locker Inc’s expected earnings would be 8.3 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

For more information on how to interpret FAST Graphs™, please click here.

Disclosure: No position at the time of writing.

Barnes Group Inc: Fundamental Stock Research Analysis

Tue, 26 Feb 2013 22:04:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 2002. A quick glance vividly reveals the historical operating record of the company.

Barnes Group Inc (B) is an international aerospace and industrial manufacturer and service provider.

This article will reveal the business prospects of Barnes Group Inc through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on Barnes Group Inc shows a picture of undervaluation based upon the historical earnings growth rate of 11.2% and a current P/E of 13.6. Analysts are forecasting the earnings growth to continue at about 13.5%, and when you look at the forecasting graph below, the stock appears in-value (it’s inside of the value corridor of the five orange lines - based on future growth).

Barnes Group Inc: Historical Earnings, Price, Dividends and Normal P/E Since 2002

Performance Table Barnes Group Inc

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 7.2% capital appreciation (green circle), long-term shareholders of Barnes Group Inc, assuming an initial investment of $1,000, would have received an additional $401.03 in dividends (blue highlighting) that increased their total return from 7.2% to 8.9% per annum versus 3.7% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for Barnes Group Inc is 1.15 which is historically high.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 4 leading analysts reporting to Capital IQ forecast Barnes Group Inc’s long-term earnings growth at 13.5%. Barnes Group Inc has medium long-term debt at 44% of capital. Barnes Group Inc is currently trading at a P/E of 13.6, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 13.5%, Barnes Group Inc’s share price would $59.99 at the end of 2018 (brown circle on EYE Chart), which would represent a 16.4% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in Barnes Group Inc to an equal investment in 10-year Treasury bonds illustrates that Barnes Group Inc’s expected earnings would be 7.7 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

For more information on how to interpret FAST Graphs™, please click here.

Disclosure: No position at the time of writing.

Tupperware Brands Corp: Fundamental Stock Research Analysis

Mon, 25 Feb 2013 18:52:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 1999. A quick glance vividly reveals the historical operating record of the company.

This article will reveal the business prospects of Tupperware Brands Corp (TUP) through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on Tupperware Brands Corp shows a picture of in-value based upon the historical earnings growth rate of 11% and a current P/E of 15.3. Analysts are forecasting the earnings growth to continue at about 12%, and when you look at the forecasting graph below, the stock appears in-value (it’s inside of the value corridor of the five orange lines - based on future growth).

Tupperware Brands Corp: Historical Earnings, Price, Dividends and Normal P/E Since 1999

Performance Table Tupperware Brands Corp

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 11.6% capital appreciation (green circle), long-term shareholders of Tupperware Brands Corp, assuming an initial investment of $1,000, would have received an additional $828.65 in dividends (blue highlighting) that increased their total return from 11.6% to 12.9% per annum versus 2.7% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for Tupperware Brands Corp is 1.67 which is historically high.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 9 leading analysts reporting to Capital IQ forecast Tupperware Brands Corp’s long-term earnings growth at 12% . Tupperware Brands Corp has medium long-term debt at 46% of capital. Tupperware Brands Corp is currently trading at a P/E of 15.3, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 12 %, Tupperware Brands Corp’s share price would $151.77 at the end of 2018 (brown circle on EYE Chart), which would represent a 14.2% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in Tupperware Brands Corp to an equal investment in 10-year Treasury bonds illustrates that Tupperware Brands Corp’s expected earnings would be 5.8 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

For more information on how to interpret FAST Graphs™, please click here.

Disclosure: No position at the time of writing.

Target Corp: Fundamental Stock Research Analysis

Wed, 20 Feb 2013 21:16:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 1999. A quick glance vividly reveals the historical operating record of the company.

Minneapolis-based Target Corp (TGT) serves guests at 1,778 stores across the United States and at Target.com. The company plans to open its first stores in Canada in 2013. Since 1946, Target has given 5 percent of its profit through community grants and programs; today, that giving equals more than $4 million a week.

This article will reveal the business prospects of Target Corp through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on Target Corp shows a picture of undervaluation based upon the historical earnings growth rate of 10.5% and a current P/E of 14. Analysts are forecasting the earnings growth to continue at about 12%, and when you look at the forecasting graph below, the stock appears undervalued (it’s inside of the value corridor of the five orange lines - based on future growth).

Target Corp: Historical Earnings, Price, Dividends and Normal P/E Since 1999

Performance Table Target Corp

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 6% capital appreciation (green circle), long-term shareholders of Target Corp, assuming an initial investment of $1,000, would have received an additional $268.03 in dividends (blue highlighting) that increased their total return from 6% to 6.8% per annum versus 2.7% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for Target Corp is .56 which is historically low.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 23 leading analysts reporting to Capital IQ forecast Target Corp’s long-term earnings growth at 12%. Target Corp has medium long-term debt at 47% of capital. Target Corp is currently trading at a P/E of 14, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 12%, Target Corp’s share price would $129.27 at the end of 2018 (brown circle on EYE Chart), which would represent a 15.1% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in Target Corp to an equal investment in 10-year Treasury bonds illustrates that Target Corp’s expected earnings would be 6.2 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

Disclosure: No position at the time of writing.

General Dynamics Corp: Fundamental Stock Research Analysis

Wed, 20 Feb 2013 20:46:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 1999. A quick glance vividly reveals the historical operating record of the company.

Headquartered in Falls Church, Virginia, General Dynamics (GD) employs approximately 92,200 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies.

This article will reveal the business prospects of General Dynamics Corp through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on General Dynamics Corp shows a picture of undervaluation based upon the historical earnings growth rate of 10.8% and a current P/E of 10.7. Analysts are forecasting the earnings growth to continue at about 5.2%, and when you look at the forecasting graph below, the stock appears undervalued (it’s outside of the value corridor of the five orange lines - based on future growth).

General Dynamics Corp: Historical Earnings, Price, Dividends and Normal P/E Since 1999

Performance Table General Dynamics Corp

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 6% capital appreciation (green circle), long-term shareholders of General Dynamics Corp, assuming an initial investment of $1,000, would have received an additional $509.52 in dividends (blue highlighting) that increased their total return from 6% to 7.5% per annum versus 2.7% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for General Dynamics Corp is .75 which is historically low.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 20 leading analysts reporting to Capital IQ forecast General Dynamics Corp’s long-term earnings growth at 5.2%. General Dynamics Corp has low long-term debt at 26% of capital. General Dynamics Corp is currently trading at a P/E of 10.7, which is below the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 5.2%, General Dynamics Corp’s share price would $133.73 at the end of 2018 (brown circle on EYE Chart), which would represent a 14.4% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in General Dynamics Corp to an equal investment in 10-year Treasury bonds illustrates that General Dynamics Corp’s expected earnings would be 6.5 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

For more information on how to interpret FAST Graphs™, please click here.

Disclosure: Long GD at the time of writing.

Lockheed Martin Corp: Fundamental Stock Research Analysis

Tue, 19 Feb 2013 20:10:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 2001. A quick glance vividly reveals the historical operating record of the company.

Headquartered in Bethesda, Md., Lockheed Martin Corp (LMT) is a global security company that employs about 126,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.

This article will reveal the business prospects of Lockheed Martin Corp through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on Lockheed Martin Corp shows a picture of undervaluation based upon the historical earnings growth rate of 15.9% and a current P/E of 10.2. Analysts are forecasting the earnings growth to continue at about 6%, and when you look at the forecasting graph below, the stock appears undervalued (it’s outside of the value corridor of the five orange lines - based on future growth).

Lockheed Martin Corp: Historical Earnings, Price, Dividends and Normal P/E Since 2001

Performance Table Lockheed Martin Corp

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 8.2% capital appreciation (green circle), long-term shareholders of Lockheed Martin Corp, assuming an initial investment of $1,000, would have received an additional $599.52 in dividends (blue highlighting) that increased their total return from 8.2% to 10% per annum versus 2.4% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for Lockheed Martin Corp is .60 which is historically low.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 20 leading analysts reporting to Capital IQ forecast Lockheed Martin Corp’s long-term earnings growth at 6%. Lockheed Martin Corp has high long-term debt at 99% of capital. Lockheed Martin Corp is currently trading at a P/E of 10.2, which is below the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 6%, Lockheed Martin Corp’s share price would $173.61 at the end of 2018 (brown circle on EYE Chart), which would represent a 15.6% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in Lockheed Martin Corp to an equal investment in 10-year Treasury bonds illustrates that Lockheed Martin Corp’s expected earnings would be 6.8 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

For more information on how to interpret FAST Graphs™, please click here.

Disclosure: Long LMT at the time of writing.

International Business Machines Corp: Fundamental Stock Research Analysis

Wed, 13 Feb 2013 20:26:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 2004. A quick glance vividly reveals the historical operating record of the company.

International Business Machines Corporation (IBM), incorporated on June 16, 1911, is an information technology company.

This article will reveal the business prospects of International Business Machines Corp through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on International Business Machines Corp shows a picture of undervaluation based upon the historical earnings growth rate of 14.2% and a current P/E of 13. Analysts are forecasting the earnings growth to continue at about 10.2%, and when you look at the forecasting graph below, the stock appears undervalued (it’s inside of the value corridor of the five orange lines - based on future growth).

International Business Machines Corp: Historical Earnings, Price, Dividends and Normal P/E Since 2004

Performance Table International Business Machines Corp

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 8.8% capital appreciation (green circle), long-term shareholders of International Business Machines Corp, assuming an initial investment of $1,000, would have received an additional $181.59 in dividends (blue highlighting) that increased their total return from 8.8% to 9.8% per annum versus 4.9% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for International Business Machines Corp is 2.14 which is historically high.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 23 leading analysts reporting to Capital IQ forecast International Business Machines Corp’s long-term earnings growth at 10.2% . International Business Machines Corp has medium long-term debt at 56% of capital. International Business Machines Corp is currently trading at a P/E of 13, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 10.2%, International Business Machines Corp’s share price would $407.70 at the end of 2018 (brown circle on EYE Chart), which would represent a 14.3% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in International Business Machines Corp to an equal investment in 10-year Treasury bonds illustrates that International Business Machines Corp’s expected earnings would be 6.4 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

For more information on how to interpret FAST Graphs™, please click here.

Disclosure: No position at the time of writing.

Eaton Corp: Fundamental Stock Research Analysis

Wed, 13 Feb 2013 19:28:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 2002. A quick glance vividly reveals the historical operating record of the company.

Eaton Corp (ETN) is a diversified power management company providing energy-efficient solutions that help our customers effectively manage electrical, hydraulic and mechanical power.

This article will reveal the business prospects of Eaton Corp through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on Eaton Corp shows a picture of in-value based upon the historical earnings growth rate of 14.7% and a current P/E of 15. Analysts are forecasting the earnings growth to continue at about 9.5%, and when you look at the forecasting graph below, the stock appears in-value (it’s inside of the value corridor of the five orange lines - based on future growth).

Eaton Corp: Historical Earnings, Price, Dividends and Normal P/E Since 2002

Performance Table Eaton Corp

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 11.1% capital appreciation (green circle), long-term shareholders of Eaton Corp, assuming an initial investment of $1,000, would have received an additional $535.44 in dividends (blue highlighting) that increased their total return from 11.1% to 12.7% per annum versus 3.8% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for Eaton Corp is 1.25 which is historically normal.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 18 leading analysts reporting to Capital IQ forecast Eaton Corp’s long-term earnings growth at 9.5%. Eaton Corp has medium long-term debt at 39% of capital. Eaton Corp is currently trading at a P/E of 15, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 9.5%, Eaton Corp’s share price would $112.14 at the end of 2018 (brown circle on EYE Chart), which would represent a 13% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in Eaton Corp to an equal investment in 10-year Treasury bonds illustrates that Eaton Corp’s expected earnings would be 6.4 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

For more information on how to interpret FAST Graphs™, please click here.

Disclosure: Long ETN at the time of writing.

Macy’s, Inc: Fundamental Stock Research Analysis

Tue, 12 Feb 2013 21:11:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 2001. A quick glance vividly reveals the historical operating record of the company.

Macy’s, Inc (M) is a retail organization operating stores and Internet Websites under two brands (Macy's and Bloomingdale's) that sell a range of merchandise, including apparel and accessories (men's, women's and children's), cosmetics, home furnishings and other consumer goods in 45 states, the District of Columbia, Guam and Puerto Rico.

This article will reveal the business prospects of Macy’s, Inc through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings Determine Market Price: The following earnings and price correlated FAST Graphs™ clearly illustrates the importance of earnings. The Earnings Growth Rate Line or True Worth™ Line (orange line with white triangles) is correlated with the historical stock price line. On graph after graph the lines will move in tandem. If the stock price strays away from the earnings line (over or under), inevitably it will come back to earnings.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on Macy’s, Inc shows a picture of undervaluation based upon the historical earnings growth rate of 7.1% and a current P/E of 11.8. Analysts are forecasting the earnings growth to continue at about 13.9%, and when you look at the forecasting graph below, the stock appears undervalued (it’s outside of the value corridor of the five orange lines - based on future growth).

Macy’s, Inc: Historical Earnings, Price, Dividends and Normal P/E Since 2001

Performance Table Macy’s, Inc

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 7.1% capital appreciation (green circle), long-term shareholders of Macy’s, Inc, assuming an initial investment of $1,000, would have received an additional $217.84 in dividends (blue highlighting) that increased their total return from 7.1% to 7.9% per annum versus 2.4% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for Macy’s, Inc is .57 which is historically normal.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 21 leading analysts reporting to Capital IQ forecast Macy’s, Inc’s long-term earnings growth at 13.9%. Macy’s, Inc has medium long-term debt at 55% of capital. Macy’s, Inc is currently trading at a P/E of 11.8, which is below the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 13.9 %, Macy’s, Inc’s share price would $110.71 at the end of 2018 (brown circle on EYE Chart), which would represent a 19.9% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in Macy’s, Inc to an equal investment in 10-year Treasury bonds illustrates that Macy’s, Inc’s expected earnings would be 8.5 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

For more information on how to interpret FAST Graphs™, please click here.

Disclosure: No Positions at the time of writing.

Ingredion Inc: Fundamental Stock Research Analysis

Tue, 12 Feb 2013 20:13:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 2002. A quick glance vividly reveals the historical operating record of the company.

Ingredion Inc (INGR) is a leading global ingredients solutions provider specializing in nature-based sweeteners, starches and nutrition ingredients. With customers in more than 40 countries, Ingredion, formerly Corn Products International, Inc. serves approximately 60 diverse sectors in food, beverage, brewing, pharmaceuticals and other industries.

This article will reveal the business prospects of Ingredion Inc through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on Ingredion Inc shows a picture of undervaluation based upon the historical earnings growth rate of 18.6% and a current P/E of 11.4. Analysts are forecasting the earnings growth to continue at about 10.5%, and when you look at the forecasting graph below, the stock appears undervalued (it’s outside of the value corridor of the five orange lines - based on future growth).

Ingredion Inc: Historical Earnings, Price, Dividends and Normal P/E Since 2002

Performance Table Ingredion Inc

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 12.5% capital appreciation (green circle), long-term shareholders of Ingredion Inc, assuming an initial investment of $1,000, would have received an additional $266.68 in dividends (blue highlighting) that increased their total return from 12.5% to 13.2% per annum versus 3.8% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for Ingredion Inc is .73 which is historically normal.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 6 leading analysts reporting to Capital IQ forecast Ingredion Inc’s long-term earnings growth at 10.5% . Ingredion Inc has medium long-term debt at 41% of capital. Ingredion Inc is currently trading at a P/E of 11.4, which is below the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 10.5 %, Ingredion Inc’s share price would $142.01 at the end of 2018 (brown circle on EYE Chart), which would represent a 15.2% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in Ingredion Inc to an equal investment in 10-year Treasury bonds illustrates that Ingredion Inc’s expected earnings would be 7.6 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

For more information on how to interpret FAST Graphs™, please click here.

Disclosure: No position at the time of writing.

United Stationers Inc: Fundamental Stock Research Analysis

Tue, 12 Feb 2013 18:13:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 1999. A quick glance vividly reveals the historical operating record of the company.

United Stationers Inc (USTR) is a leading wholesale distributor of business products, with 2011 net sales of approximately $5.0 billion. The company stocks approximately 100,000 items, including technology products, traditional office products, janitorial and breakroom supplies, office furniture, and industrial products. A network of 72 distribution centers enables delivery of these products to over 25,000 reseller customers. This network, combined with United’s depth and breadth of inventory, enables the company to ship most products overnight to more than 90% of the population of the U.S. and major cities in Mexico.

This article will reveal the business prospects of United Stationers Inc through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on United Stationers Inc shows a picture of undervaluation based upon the historical earnings growth rate of 7.5% and a current P/E of 12.2. Analysts are forecasting the earnings growth to continue at about 14%, and when you look at the forecasting graph below, the stock appears undervalued (it’s inside of the value corridor of the five orange lines - based on future growth).

United Stationers Inc: Historical Earnings, Price, Dividends and Normal P/E Since 1999

Performance Table United Stationers Inc

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 6.9% capital appreciation (green circle), long-term shareholders of United Stationers Inc, assuming an initial investment of $1,000, would have received an additional $70.00 in dividends (blue highlighting) that increased their total return from 6.9% to 7.1% per annum versus 2.7% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for United Stationers Inc is .27 which is historically normal.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 5 leading analysts reporting to Capital IQ forecast United Stationers Inc’s long-term earnings growth at 14%. United Stationers Inc has medium long-term debt at 33% of capital. United Stationers Inc is currently trading at a P/E of 12.2, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 14 %, United Stationers Inc ’s share price would $88.38 at the end of 2018 (brown circle on EYE Chart), which would represent a 19.2% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in United Stationers Inc to an equal investment in 10-year Treasury bonds illustrates that United Stationers Inc ’s expected earnings would be 8.2 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

For more information on how to interpret FAST Graphs™, please click here.

Disclosure: No position at the time of writing.

Franklin Resources Inc: Fundamental Stock Research Analysis

Thu, 07 Feb 2013 20:07:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 1999. A quick glance vividly reveals the historical operating record of the company.

Franklin Resources, Inc (BEN) is a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management solutions managed by its Franklin, Templeton, Mutual Series, Fiduciary Trust, Darby and Bissett investment teams. The San Mateo, CA-based company has 65 years of investment experience.

This article will reveal the business prospects of Franklin Resources Inc through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on Franklin Resources Inc shows a picture of in-value based upon the historical earnings growth rate of 11.4% and a current P/E of 15.1. Analysts are forecasting the earnings growth to continue at about 11.8%, and when you look at the forecasting graph below, the stock appears in-value (it’s inside of the value corridor of the five orange lines - based on future growth).

Franklin Resources Inc: Historical Earnings, Price, Dividends and Normal P/E Since 1999

Performance Table Franklin Resources Inc

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 11.1% capital appreciation (green circle), long-term shareholders of Franklin Resources Inc, assuming an initial investment of $1,000, would have received an additional $555.93 in dividends (blue highlighting) that increased their total return from 11.1% to 12% per annum versus 2.7% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for Franklin Resources Inc is 4.07 which is historically normal.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 20 leading analysts reporting to Capital IQ forecast Franklin Resources Inc’s long-term earnings growth at 11.8% . Franklin Resources Inc has low long-term debt at 20% of capital. Franklin Resources Inc is currently trading at a P/E of 15.1, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 11.8%, Franklin Resources Inc’s share price would $260.48 at the end of 2018 (brown circle on EYE Chart), which would represent a 12.2% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in Franklin Resources Inc to an equal investment in 10-year Treasury bonds illustrates that Franklin Resources Inc’s expected earnings would be 6.5 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

For more information on how to interpret FAST Graphs™, please click here.

Disclosure: No position at the time of writing.

McGraw-Hill Companies: Fundamental Stock Research Analysis

Wed, 06 Feb 2013 20:42:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 1999. A quick glance vividly reveals the historical operating record of the company.

The McGraw-Hill Companies (MHP) is a global information services provider serving the financial, education, commercial and commodities markets. The Company serves its customers through a range of products, services and distribution channels, including digital data and information, integrated digital platforms, online via Internet Websites, as well as with printed books, magazines and newsletters, and conferences and trade shows.

This article will reveal the business prospects of McGraw-Hill Companies through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on McGraw-Hill Companies shows a picture of undervaluation based upon the historical earnings growth rate of 10.5% and a current P/E of 13. Analysts are forecasting the earnings growth to continue at about 14.8%, and when you look at the forecasting graph below, the stock appears undervalued (it’s inside of the value corridor of the five orange lines - based on future growth).

McGraw-Hill Companies: Historical Earnings, Price, Dividends and Normal P/E Since 1999

Performance Table McGraw-Hill Companies

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 4.1% capital appreciation (green circle), long-term shareholders of McGraw-Hill Companies, assuming an initial investment of $1,000, would have received an additional $490.19 in dividends (blue highlighting) that increased their total return from 4.1% to 5.9% per annum versus 2.7% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for McGraw-Hill Companies is 1.96 which is historically low.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 6 leading analysts reporting to Capital IQ forecast McGraw-Hill Companies’ long-term earnings growth at 14.8% (orange circle). McGraw-Hill Companies has low long-term debt at 23% of capital (red circle). McGraw-Hill Companies is currently trading at a P/E of 13, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 14.8%, McGraw-Hill Companies’ share price would $113.65 at the end of 2018 (brown circle on EYE Chart), which would represent a 23% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in McGraw-Hill Companies to an equal investment in 10-year Treasury bonds illustrates that McGraw-Hill Companies’ expected earnings would be 7.8 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

For more information on how to interpret FAST Graphs™, please click here.

Disclosure: Long MHP at the time of writing.

Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation. A comprehensive due diligence effort is recommended.

AmerisourceBergen Corp: Fundamental Stock Research Analysis

Tue, 05 Feb 2013 15:52:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 1999. A quick glance vividly reveals the historical operating record of the company.

AmerisourceBergen Corp (ABC) is one of the world's largest pharmaceutical services companies serving the United States, Canada and selected global markets.

This article will reveal the business prospects of AmerisourceBergen Corp through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on AmerisourceBergen Corp shows a picture of in-value based upon the historical earnings growth rate of 15.6% and a current P/E of 15.7. Analysts are forecasting the earnings growth to continue at about 12%, and when you look at the forecasting graph below, the stock appears overvalued (it’s inside of the value corridor of the five orange lines - based on future growth).

AmerisourceBergen Corp: Historical Earnings, Price, Dividends and Normal P/E Since 1999

Performance Table AmerisourceBergen Corp

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 13.2% capital appreciation (green circle), long-term shareholders of AmerisourceBergen Corp, assuming an initial investment of $1,000, would have received an additional $257.25 in dividends (blue highlighting) that increased their total return from 13.2% to 13.5% per annum versus 2.7% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for AmerisourceBergen Corp is .14 which is historically normal.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 17 leading analysts reporting to Capital IQ forecast AmerisourceBergen Corp’s long-term earnings growth at 12% (orange circle). AmerisourceBergen Corp has medium long-term debt at 37% of capital (red circle). AmerisourceBergen Corp is currently trading at a P/E of 15.7, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 12%, AmerisourceBergen Corp’s share price would $82.61 at the end of 2018 (brown circle on EYE Chart), which would represent a 12.2% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in AmerisourceBergen Corp to an equal investment in 10-year Treasury bonds illustrates that AmerisourceBergen Corp’s expected earnings would be 6.2 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

Disclosure: Long ABC at the time of writing.

Energizer Holdings Inc: Fundamental Stock Research Analysis

Tue, 05 Feb 2013 15:40:00 GMT

Energizer Holdings Inc (ENR), headquartered in St. Louis, Missouri, is a consumer goods company operating globally in the broad categories of personal care and household products.

This article will reveal the business prospects of Energizer Holdings Inc through the lens of FAST Graphs™ – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on Energizer Holdings Inc shows a picture of undervaluation based upon the historical earnings growth rate of 11.3% and a current P/E of 13.6. Analysts are forecasting the earnings growth to continue at about 10.8%, and when you look at the forecasting graph below, the stock appears undervalued (it’s inside of the value corridor of the five orange lines - based on future growth).

Energizer Holdings Inc: Historical Earnings, Price, Dividends and Normal P/E Since 2003

Performance Table Energizer Holdings Inc

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 12% capital appreciation (green circle), long-term shareholders of Energizer Holdings Inc, assuming an initial investment of $1,000, would have received an additional $28.68 in dividends (blue highlighting) that increased their total return from 12% to 12.1% per annum versus 6.8% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for Energizer Holdings Inc is 1.20 which is historically low.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 13 leading analysts reporting to Capital IQ forecast Energizer Holdings Inc’s long-term earnings growth at 10.8% (orange circle). Energizer Holdings Inc has medium long-term debt at 51% of capital (red circle). Energizer Holdings Inc is currently trading at a P/E of 13.6, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 10.8%, Energizer Holdings Inc’s share price would $173.31 at the end of 2018 (brown circle on EYE Chart), which would represent a 14.1% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in Energizer Holdings Inc to an equal investment in 10-year Treasury bonds illustrates that Energizer Holdings Inc’s expected earnings would be 6.8 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

For more information on how to interpret FAST Graphs™, please click here

Disclosure: No position at the time of writing.

Universal Health Services Inc: Fundamental Stock Research Analysis

Mon, 04 Feb 2013 19:58:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 1999. A quick glance vividly reveals the historical operating record of the company.

Universal Health Services Inc (UHS) is one of the nation's largest hospital companies, operating, through its subsidiaries, behavioral health facilities, acute care hospitals, and ambulatory centers throughout the United States, Puerto Rico, and the U.S. Virgin Islands.

This article will reveal the business prospects of Universal Health Services Inc through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on Universal Health Services Inc shows a picture of undervaluation based upon the historical earnings growth rate of 14.1% and a current P/E of 13.7. Analysts are forecasting the earnings growth to continue at about 10.5%, and when you look at the forecasting graph below, the stock appears undervalued (it’s inside of the value corridor of the five orange lines - based on future growth).

Universal Health Services Inc: Historical Earnings, Price, Dividends and Normal P/E Since 1999

Performance Table Universal Health Services Inc

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 11% capital appreciation (green circle), long-term shareholders of Universal Health Services Inc, assuming an initial investment of $1,000, would have received an additional $153.07 in dividends (blue highlighting) that increased their total return from 11% to 11.3% per annum versus 2.7% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for Universal Health Services Inc is .79 which is historically normal.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 17 leading analysts reporting to Capital IQ forecast Universal Health Services Inc’s long-term earnings growth at 10.5% (orange circle). Universal Health Services Inc has medium long-term debt at 54% of capital (red circle). Universal Health Services Inc is currently trading at a P/E of 13.7, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 10.5%, Universal Health Services Inc’s share price would $112.44 at the end of 2018 (brown circle on EYE Chart), which would represent a 13.3% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in Universal Health Services Inc to an equal investment in 10-year Treasury bonds illustrates that Universal Health Services Inc’s expected earnings would be 6.2 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

Disclosure: No position at the time of writing.

Signet Jewelers Ltd.: Fundamental Stock Research Analysis

Fri, 01 Feb 2013 20:31:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 1999. A quick glance vividly reveals the historical operating record of the company.

Signet Jewelers Ltd. (SIG) is the largest specialty retail jeweler in the US and UK.

This article will reveal the business prospects of Signet Jewelers Ltd. through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on Signet Jewelers Ltd. shows a picture of in-value based upon the historical earnings growth rate of 6.9% and a current P/E of 14.5. Analysts are forecasting the earnings growth to continue at about 11.7%, and when you look at the forecasting graph below, the stock appears undervalued (it’s inside of the value corridor of the five orange lines - based on future growth).

Signet Jewelers Ltd.: Historical Earnings, Price, Dividends and Normal P/E Since 1999

Performance Table Signet Jewelers Ltd.

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 13.6% capital appreciation (green circle), long-term shareholders of Signet Jewelers Ltd., assuming an initial investment of $1,000, would have received an additional $899.20 in dividends (blue highlighting) that increased their total return from 13.6% to 14.8% per annum versus 2.7% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for Signet Jewelers Ltd. is 1.22 which is historically normal.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 11 leading analysts reporting to Capital IQ forecast Signet Jewelers Ltd.’s long-term earnings growth at 11.7% (orange circle). Signet Jewelers Ltd. has low long-term debt at 0% of capital (red circle). Signet Jewelers Ltd. is currently trading at a P/E of 14.5, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 11.7%, Signet Jewelers Ltd.’s share price would $111.88 at the end of 2018 (brown circle on EYE Chart), which would represent a 13.1% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in Signet Jewelers Ltd. to an equal investment in 10-year Treasury bonds illustrates that Signet Jewelers Ltd.’s expected earnings would be 6.2 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

Disclosure: No Positions at the time of writing.

Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation. A comprehensive due diligence effort is recommended.

GameStop Corp: Fundamental Stock Research Analysis

Wed, 30 Jan 2013 15:34:00 GMT

GameStop Corp (GME) is the world's largest multichannel video game retailer.

This article will reveal the business prospects of GameStop Corp through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on GameStop Corp shows a picture of undervaluation based upon the historical earnings growth rate of 20.3% and a current P/E of 7.7. Analysts are forecasting the earnings growth to continue at about 9.2%, and when you look at the forecasting graph below, the stock appears undervalued (it’s outside of the value corridor of the five orange lines - based on future growth).

GameStop Corp: Historical Earnings, Price, Dividends and Normal P/E Since 2003

Performance Table GameStop Corp

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 17.1% capital appreciation (green circle), long-term shareholders of GameStop Corp, assuming an initial investment of $1,000, would have received an additional $163.26 in dividends (blue highlighting) that increased their total return from 17.1% to 17.4% per annum versus 7.1% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for GameStop Corp is .33 which is historically low.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 20 leading analysts reporting to Capital IQ forecast GameStop Corp’s long-term earnings growth at 9.2% (orange circle). GameStop Corp has no long-term debt of capital (red circle). GameStop Corp is currently trading at a P/E of 7.7, which is below the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 9.2 %, GameStop Corp’s share price would $71.99 at the end of 2018 (brown circle on EYE Chart), which would represent a 27% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in GameStop Corp to an equal investment in 10-year Treasury bonds illustrates that GameStop Corp’s expected earnings would be 10.4 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

Disclosure: Long GME at the time of writing.

J2 Global Inc: Fundamental Stock Research Analysis

Tue, 29 Jan 2013 20:24:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 2004. A quick glance vividly reveals the historical operating record of the company.

J2 Global (JCOM) provides Internet services through its two divisions: Business Cloud Services and Digital Media Division. The Business Cloud Services Division offers Internet fax, virtual phone, hosted email, email marketing, online backup, unified communications and CRM solutions.

This article will reveal the business prospects of J2 Global Inc through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on J2 Global Inc shows a picture of undervaluation based upon the historical earnings growth rate of 16.4% and a current P/E of 12.1. Analysts are forecasting the earnings growth to continue at about 6.5%, and when you look at the forecasting graph below, the stock appears undervalued (it’s inside of the value corridor of the five orange lines - based on future growth).

J2 Global Inc: Historical Earnings, Price, Dividends and Normal P/E Since 2004

Performance Table J2 Global Inc

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 10.9% capital appreciation (green circle), long-term shareholders of J2 Global Inc, assuming an initial investment of $1,000, would have received an additional $102.87 in dividends (blue highlighting) that increased their total return from 10.9% to 11.4% per annum versus 5% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for J2 Global Inc is 4.03 which is historically low.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 7 leading analysts reporting to Capital IQ forecast J2 Global Inc’s long-term earnings growth at 6.5% (orange circle). J2 Global Inc has medium long-term debt at 30% of capital (red circle). J2 Global Inc is currently trading at a P/E of 12.1, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 6.5%, J2 Global Inc’s share price would $54.46 at the end of 2018 (brown circle on EYE Chart), which would represent a 11.9% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in J2 Global Inc to an equal investment in 10-year Treasury bonds illustrates that J2 Global Inc’s expected earnings would be 5.6 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

Disclosure: No position at the time of writing.

Chemed Corporation: Fundamental Stock Research Analysis

Tue, 29 Jan 2013 15:58:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 2004. A quick glance vividly reveals the historical operating record of the company.

Listed on the New York Stock Exchange and headquartered in Cincinnati, Ohio, Chemed Corporation (CHE) operates two wholly owned subsidiaries: VITAS Healthcare and Roto-Rooter. VITAS is the nation's largest provider of end-of-life hospice care and Roto-Rooter is the nation’s leading provider of plumbing and drain cleaning services.

This article will reveal the business prospects of Chemed Corporation through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on Chemed Corporation shows a picture of undervaluation based upon the historical earnings growth rate of 25.9% and a current P/E of 14.4. Analysts are forecasting the earnings growth to continue at about 12.5%, and when you look at the forecasting graph below, the stock appears undervalued (it’s inside of the value corridor of the five orange lines - based on future growth).

Chemed Corporation: Historical Earnings, Price, Dividends and Normal P/E Since 2004

Performance Table Chemed Corporation

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 13.9% capital appreciation (green circle), long-term shareholders of Chemed Corporation, assuming an initial investment of $1,000, would have received an additional $145.76 in dividends (blue highlighting) that increased their total return from 13.9% to 14.5% per annum versus 5% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for Chemed Corporation is 1.02 which is historically low.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 5 leading analysts reporting to Capital IQ forecast Chemed Corporation’s long-term earnings growth at 12.5% (orange circle). Chemed Corporation has medium long-term debt at 27% of capital (red circle). Chemed Corporation is currently trading at a P/E of 14.4, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 12.5 %, Chemed Corporation’s share price would $147.32 at the end of 2018 (brown circle on EYE Chart), which would represent a 12.9% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in Chemed Corporation to an equal investment in 10-year Treasury bonds illustrates that Chemed Corporation’s expected earnings would be 6.1 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

Disclosure: No position at the time of writing.

Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation. A comprehensive due diligence effort is recommended.

Norfolk Southern Corp: Fundamental Stock Research Analysis

Tue, 22 Jan 2013 21:01:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 2002. A quick glance vividly reveals the historical operating record of the company.

Norfolk Southern Corp (NSC) is one of the nation’s premier transportation companies. Its Norfolk Southern Railway subsidiary operates approximately 20,000 route miles in 22 states and the District of Columbia, serves every major container port in the eastern United States, and provides efficient connections to other rail carriers.

This article will reveal the business prospects of Norfolk Southern Corp through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings Determine Market Price: The following earnings and price correlated FAST Graphs™ clearly illustrates the importance of earnings. The Earnings Growth Rate Line or True Worth™ Line (orange line with white triangles) is correlated with the historical stock price line. On graph after graph the lines will move in tandem. If the stock price strays away from the earnings line (over or under), inevitably it will come back to earnings.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on Norfolk Southern Corp shows a picture of undervaluation based upon the historical earnings growth rate of 16.2% and a current P/E of 12.6. Analysts are forecasting the earnings growth to continue at about 15%, and when you look at the forecasting graph below, the stock appears undervalued (it’s inside of the value corridor of the five orange lines - based on future growth).

Norfolk Southern Corp: Historical Earnings, Price, Dividends and Normal P/E Since 2002

Performance Table Norfolk Southern Corp

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 12.4% capital appreciation (green circle), long-term shareholders of Norfolk Southern Corp, assuming an initial investment of $1,000, would have received an additional $579.43 in dividends (blue highlighting) that increased their total return from 12.4% to 13.9% per annum versus 3.8% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for Norfolk Southern Corp is 1.89 which is historically normal.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 27 leading analysts reporting to Capital IQ forecast Norfolk Southern Corp’s long-term earnings growth at 15% (orange circle). Norfolk Southern Corp has medium long-term debt at 46% of capital (red circle). Norfolk Southern Corp is currently trading at a P/E of 12.6, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 15%, Norfolk Southern Corp’s share price would $168.95 at the end of 2018 (brown circle on EYE Chart), which would represent a 19.3% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in Norfolk Southern Corp to an equal investment in 10-year Treasury bonds illustrates that Norfolk Southern Corp’s expected earnings would be 7.8 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

For more information on how to interpret FAST Graphs™, please click here.

Disclosure: No position at the time of writing.

Fossil Inc – Fundamental Stock Research Analysis

Tue, 22 Jan 2013 16:09:00 GMT

Growth stocks are defined as companies with high rates of change of earnings growth of 15% to 20% or better. Growth stocks offer the potential for share prices to rise in lockstep with their profit growth in the long run. Therefore, the PEG ratio formula (price equals growth rate) tends to be the most appropriate formula used to value growth stocks. However, due to the exponential nature of compounding large numbers, PEG ratio forecasts are capped at 40%.

Because of the higher valuation typically awarded to fast growth, growth stocks offer the potential for greater capital appreciation. On the other hand, they also offer higher risk. First of all, they tend to command much higher than average PE ratios, and second, achieving very high levels of growth is very difficult to sustain. Consequently, forecasting future earnings growth is more important with high growth stocks than any other class of stock. Also, the average growth stock typically ploughs all of its profits back into the company to fund its future growth, instead of paying dividends.

Fossil Inc: Large-cap Growth at an Attractive Price

Fossil Inc. (FOSL) is a global design, marketing and distribution company that specializes in consumer fashion accessories. The Company's principal offerings include an extensive line of men's and women's fashion watches and jewelry sold under proprietary and licensed brands, handbags, small leather goods, belts, sunglasses, soft accessories, shoes and clothing.

Fossil Inc: Historical Earnings, Price and Normal PE Since 1999

Performance Table Fossil Inc

The Two Keys to Long-Term Performance

Years of research and experience have taught us that there are two critically important keys to achieving above-average, long-term shareholder returns at reasonably controlled levels of risk. The first key is earnings growth, or what we like to call the rate of change of earnings growth. The faster a company can grow its business (i.e. earnings), the larger the income stream it can produce with which to reward shareholders. This is because of the power of compounding, which Albert Einstein was alleged to have called "the most powerful force on earth."

The second key is valuation. When a company can be purchased at its intrinsic value based on earnings and cash flow generation, the shareholders' rate of return or long-term capital appreciation will inevitably correlate to and/or equal its earnings growth rate. Overvaluation will lower that rate of return and conversely, undervaluation will increase it. Consequently, paying strict attention to the valuation you pay to buy a stock is a critical component of both greater return and taking lower risk to achieve it. Because, ironically, when you overpay for even the best business, you simultaneously lower your return potential while increasing your risk of achieving the lower return.

The associated performance results with the earnings and price correlated graph, validates the above discussion regarding the two keys to long-term performance. Notice the impact that valuation (black line above or below orange earnings justified valuation line) had on the following performance results.

The following graph plots the historical PE ratio (the dark blue line) in conjunction with 10-year Treasury note interest. Notice that the current price earnings ratio on this quality company is as high as it has been since 1999.

A further indication of valuation can be seen by examining a company’s current price to sales ratio relative to its historical price to sales ratio. The current price to sales ratio for Fossil Inc is 2.31 which is historically normal.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound, and profitable performance.

Therefore, it logically follows that measuring performance without simultaneously measuring valuation is a job half done. Fossil Inc is clearly an industry leading superior business, which based on the consensus estimates from leading analysts, appears to be capable of growing earnings at an above-average rate for the foreseeable future. At its current price, which is attractively aligned with its True Worth™ valuation, Fossil Inc represents an opportunity for growth at a reasonable price. The important factor is that Fossil Inc, with its strong balance sheet and potential for future earnings growth, has real assets and cash flow underpinning its stock price. This solid economic foundation offers shareholders the potential for both a strong margin of safety and an opportunity for outsized future returns.

The consensus of 16 leading analysts reporting to Capital IQ forecast Fossil Inc’s long-term earnings growth at 18%. Fossil Inc has low long-term debt at 13% of capital. Fossil Inc is currently trading at a P/E of 19.3, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 21.6. If the earnings materialize as forecast, Fossil Inc’s True Worth™ valuation would be $253.13 at the end of 2018, which would be a 15.9% annual rate of return from the current price.

Earnings Yield Estimates

Discounted Future Cash Flows: All companies derive their value from the future cash flows (earnings) they are capable of generating for their stake holders over time. Therefore, because Earnings Determine Market Price in the long run, we expect the future earnings of a company to justify the price we pay.

Since all investments potentially compete with all other investments, it is useful to compare investing in any perspective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in Fossil Inc to an equal investment in 10 year Treasury bonds, illustrates that Fossil Inc’s expected earnings would be 6.1 times that of the 10 Year T-Bond Interest. (See EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

This report presented essential “fundamentals at a glance” illustrating the past and present valuation based on earnings achievements as reported. Future forecasts for earnings growth are based on the consensus of leading analysts. Although, with just a quick glance you can know a lot about the company, it’s imperative that the reader conducts their own due diligence in order to validate whether the consensus estimates seem reasonable or not.

For more information on how to interpret FAST Graphs™, please click here.

Disclosure: No position at the time of writing.

VF Corp: Fundamental Stock Research Analysis

Fri, 18 Jan 2013 21:24:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 2002. A quick glance vividly reveals the historical operating record of the company.

VF Corporation (VFC) is a global leader in branded lifestyle apparel and footwear with more than 30 brands. The company’s largest five brands are The North Face®, Wrangler®, Timberland®, Vans®, and Lee®. Other brands include 7 For All Mankind®, Bulwark®, Eagle Creek®, Eastpak®, Ella Moss®, JanSport®, Kipling®, lucy®, Majestic®, Napapijri®, Nautica®, Red Kap®, Reef®, Riders®, Splendid® and Smartwool®.

This article will reveal the business prospects of VF Corp through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on VF Corp shows a slight picture of in-value based upon the historical earnings growth rate of 12.3% and a current P/E of 15.6. Analysts are forecasting the earnings growth to continue at about 14.3%, and when you look at the forecasting graph below, the stock appears fairly valued (it’s inside of the value corridor of the five orange lines - based on future growth).

VF Corp: Historical Earnings, Price, Dividends and Normal P/E Since 2002

Performance Table VF Corp

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 13% capital appreciation (green circle), long-term shareholders of VF Corp, assuming an initial investment of $1,000, would have received an additional $540.01 in dividends (blue highlighting) that increased their total return from 13% to 14.4% per annum versus 3.8% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for VF Corp is 1.54 which is historically high.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 21 leading analysts reporting to Capital IQ forecast VF Corp’s long-term earnings growth at 13% (orange circle). VF Corp has low long-term debt at 22% of capital (red circle). VF Corp is currently trading at a P/E of 15.6, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 13%, VF Corp’s share price would $304.00 at the end of 2018 (brown circle on EYE Chart), which would represent a 14.3% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in VF Corp to an equal investment in 10-year Treasury bonds illustrates that VF Corp’s expected earnings would be 6.2 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

For more information on how to interpret FAST Graphs™, please click here.

Disclosure: No position at the time of writing.

First Cash Financial Services – Fundamental Stock Research Analysis

Fri, 18 Jan 2013 18:15:00 GMT

First Cash Financial Services: Large-cap Growth at an Attractive Price

First Cash Financial Services, Inc. (FCFS) is a leading provider of specialty consumer financial services and related retail products. First Cash operates pawn stores and cash advance stores.

Earnings Determine Market Price: The following earnings and price correlated FAST Graphs™ clearly illustrates the importance of earnings. The Earnings Growth Rate Line or True Worth™ Line (orange line with white triangles) is correlated with the historical stock price line. On graph after graph the lines will move in tandem. If the stock price strays away from the earnings line (over or under), inevitably it will come back to earnings.

First Cash Financial Services: Historical Earnings, Price and Normal PE Since 2001

Performance Table First Cash Financial Services

The Two Keys to Long-Term Performance

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound, and profitable performance.

Therefore, it logically follows that measuring performance without simultaneously measuring valuation is a job half done. First Cash Financial Services is clearly an industry leading superior business, which based on the consensus estimates from leading analysts, appears to be capable of growing earnings at an above-average rate for the foreseeable future. At its current price, which is attractively aligned with its True Worth™ valuation, First Cash Financial Services represents an opportunity for growth at a reasonable price. The important factor is that First Cash Financial Services, with its strong balance sheet and potential for future earnings growth, has real assets and cash flow underpinning its stock price. This solid economic foundation offers shareholders the potential for both a strong margin of safety and an opportunity for outsized future returns.

The consensus of 10 leading analysts reporting to Capital IQ forecast First Cash Financial Services’ long-term earnings growth at 20%. First Cash Financial Services has low long-term debt at 27% of capital. First Cash Financial Services is currently trading at a P/E of 18.6, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 24. If the earnings materialize as forecast, First Cash Financial Services’ True Worth™ valuation would be $162.24 at the end of 2018, which would be a 21.5% annual rate of return from the current price.

Earnings Yield Estimates

Discounted Future Cash Flows: All companies derive their value from the future cash flows (earnings) they are capable of generating for their stake holders over time. Therefore, because Earnings Determine Market Price in the long run, we expect the future earnings of a company to justify the price we pay.

Since all investments potentially compete with all other investments, it is useful to compare investing in any perspective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in First Cash Financial Services to an equal investment in 10 year Treasury bonds, illustrates that First Cash Financial Services’ expected earnings would be 7.3 times that of the 10 Year T-Bond Interest. (See EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

Although, with just a quick glance you can know a lot about the company, it’s imperative that the reader conducts their own due diligence in order to validate whether the consensus estimates seem reasonable or not.

Disclosure: No position at the time of writing.

H.B. Fuller Co: Fundamental Stock Research Analysis

Thu, 17 Jan 2013 18:24:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 2005. A quick glance vividly reveals the historical operating record of the company.

This article will reveal the business prospects of H.B. Fuller Co through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

For more than 120 years, H.B. Fuller has been a leading global adhesives provider focusing on perfecting adhesives, sealants, paints and other specialty chemical products to improve products and lives.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on H.B. Fuller Co shows a picture of in-value based upon the historical earnings growth rate of 16.7% and a current P/E of 16.6. Analysts are forecasting the earnings growth to continue at about 13%, and when you look at the forecasting graph below, the stock appears in-value (it’s inside of the value corridor of the five orange lines - based on future growth).

H.B. Fuller Co: Historical Earnings, Price, Dividends and Normal P/E Since 2005

Performance Table H.B. Fuller Co

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 12.4% capital appreciation (green circle), long-term shareholders of H.B. Fuller Co, assuming an initial investment of $1,000, would have received an additional $153.02 in dividends (blue highlighting) that increased their total return from 12.4% to 13.3% per annum versus 4.2% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for H.B. Fuller Co is 1.01 which is historically normal.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 8 leading analysts reporting to Capital IQ forecast H.B. Fuller Co’s long-term earnings growth at 13% (orange circle). H.B. Fuller Co has medium long-term debt at 37% of capital (red circle). H.B. Fuller Co is currently trading at a P/E of 16.6, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 13%, H.B. Fuller Co’s share price would $71.85 at the end of 2018 (brown circle on EYE Chart), which would represent a 13% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in H.B. Fuller Co to an equal investment in 10-year Treasury bonds illustrates that H.B. Fuller Co’s expected earnings would be 6.1 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

For more information on how to interpret FAST Graphs™, please click here.

Disclosure: No Positions at the time of writing.

Valmont Industries Inc: Fundamental Stock Research Analysis

Wed, 16 Jan 2013 21:44:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 1999. A quick glance vividly reveals the historical operating record of the company.

This article will reveal the business prospects of Valmont Industries Inc (VMI) through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Valmont Industries Inc is the global leader in designing and manufacturing poles, towers and structures for lighting and traffic, wireless communication and utility markets, industrial access systems, highway safety barriers and a provider of protective coating services. Valmont also leads the world in mechanized irrigation equipment for agriculture, enhancing food production while conserving and protecting natural water resources. In addition, Valmont produces a wide variety of tubing for commercial and industrial applications.

Earnings Determine Market Price: The following earnings and price correlated FAST Graphs™ clearly illustrates the importance of earnings. The Earnings Growth Rate Line or True Worth™ Line (orange line with white triangles) is correlated with the historical stock price line. On graph after graph the lines will move in tandem. If the stock price strays away from the earnings line (over or under), inevitably it will come back to earnings.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on Valmont Industries Inc shows a picture of in-value based upon the historical earnings growth rate of 15.9% and a current P/E of 16.9. Analysts are forecasting the earnings growth to continue at about 15%, and when you look at the forecasting graph below, the stock appears fairly valued (it’s inside of the value corridor of the five orange lines - based on future growth).

Valmont Industries Inc: Historical Earnings, Price, Dividends and Normal P/E Since 1999

Performance Table Valmont Industries Inc

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 18.1% capital appreciation (green circle), long-term shareholders of Valmont Industries Inc, assuming an initial investment of $1,000, would have received an additional $439.63 in dividends (blue highlighting) that increased their total return from 18.1% to 18.4% per annum versus 2.6% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for Valmont Industries Inc is 1.28 which is historically high.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 7 leading analysts reporting to Capital IQ forecast Valmont Industries Inc’s long-term earnings growth at 15% (orange circle). Valmont Industries Inc has low long-term debt at 25% of capital (red circle). Valmont Industries Inc is currently trading at a P/E of 16.9, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 15%, Valmont Industries Inc’s share price would $287.22 at the end of 2018 (brown circle on EYE Chart), which would represent a 13% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in Valmont Industries Inc to an equal investment in 10-year Treasury bonds illustrates that Valmont Industries Inc’s expected earnings would be 6.2 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

For more information on how to interpret FAST Graphs™, please click here.

Disclosure: No position at the time of writing.

Baxter International Inc: Fundamental Stock Research Analysis

Wed, 16 Jan 2013 20:18:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 2004. A quick glance vividly reveals the historical operating record of the company.

Baxter International, Inc (BAX) develops, manufactures and markets products that save and sustain the lives of people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions.

This article will reveal the business prospects of Baxter International Inc through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings Determine Market Price: The following earnings and price correlated FAST Graphs™ clearly illustrates the importance of earnings. The Earnings Growth Rate Line or True Worth™ Line (orange line with white triangles) is correlated with the historical stock price line. On graph after graph the lines will move in tandem. If the stock price strays away from the earnings line (over or under), inevitably it will come back to earnings.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on Baxter International Inc shows a picture of in-value based upon the historical earnings growth rate of 9.9% and a current P/E of 14.8. Analysts are forecasting the earnings growth to continue at about 10.4%, and when you look at the forecasting graph below, the stock appears in-value (it’s inside of the value corridor of the five orange lines - based on future growth).

Baxter International Inc: Historical Earnings, Price, Dividends and Normal P/E Since 2004

Performance Table Baxter International Inc

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 9.1% capital appreciation (green circle), long-term shareholders of Baxter International Inc, assuming an initial investment of $1,000, would have received an additional $277.33 in dividends (blue highlighting) that increased their total return from 9.1% to 9.1% per annum versus 4.8% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for Baxter International Inc is 2.62 which is historically normal.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 24 leading analysts reporting to Capital IQ forecast Baxter International Inc’s long-term earnings growth at 8% (orange circle). Baxter International Inc has medium long-term debt at 44% of capital (red circle). Baxter International Inc is currently trading at a P/E of 14.8, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 8%, Baxter International Inc’s share price would $106.89 at the end of 2018 (brown circle on EYE Chart), which would represent a 10.4% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in Baxter International Inc to an equal investment in 10-year Treasury bonds illustrates that Baxter International Inc’s expected earnings would be 5.1 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

For more information on how to interpret FAST Graphs™, please click here.

Disclosure: No position at the time of writing.

Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation. A comprehensive due diligence effort is recommended.

Family Dollar Stores: Fundamental Stock Research Analysis

Mon, 14 Jan 2013 17:59:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 1999. A quick glance vividly reveals the historical operating record of the company.

Family Dollar Stores (FDO) is one of the fastest growing discount store chains in the United States. The merchandising strategy that drives this growth provides customers with good values on basic merchandise for the family and home in a small-box, neighborhood format.

This article will reveal the business prospects of Family Dollar Stores through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on Family Dollar Stores shows a picture of in-value based upon the historical earnings growth rate of 13.5% and a current P/E of 14.9. Analysts are forecasting the earnings growth to continue at about 13%, and when you look at the forecasting graph below, the stock appears in-value (it’s inside of the value corridor of the five orange lines - based on future growth).

Family Dollar Stores: Historical Earnings, Price, Dividends and Normal P/E Since 1999

Performance Table Family Dollar Stores

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 6.9% capital appreciation (green circle), long-term shareholders of Family Dollar Stores, assuming an initial investment of $1,000, would have received an additional $278.60 in dividends (blue highlighting) that increased their total return from 6.9% to 7.7% per annum versus 2.6% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for Family Dollar Stores is .68 which is historically normal.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 26 leading analysts reporting to Capital IQ forecast Family Dollar Stores’ long-term earnings growth at 13% (orange circle). Family Dollar Stores has medium long-term debt at 27% of capital (red circle). Family Dollar Stores is currently trading at a P/E of 14.9, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 13%, Family Dollar Stores’ share price would $109.93 at the end of 2018 (brown circle on EYE Chart), which would represent a 13.8% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in Family Dollar Stores to an equal investment in 10-year Treasury bonds illustrates that Family Dollar Stores’ expected earnings would be 6 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

For more information on how to interpret FAST Graphs™, please click here

Disclosure: No Positions at the time of writing.

Advance Auto Parts Inc: Fundamental Stock Research Analysis

Mon, 14 Jan 2013 15:52:00 GMT

Advance Auto Parts Inc (AAP) is a leading automotive aftermarket retailer of parts, accessories, batteries, and maintenance items in the United States, serves both the do-it-yourself and professional installer markets.

This article will reveal the business prospects of Advance Auto Parts Inc through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings Determine Market Price: The following earnings and price correlated FAST Graphs™ clearly illustrates the importance of earnings. The Earnings Growth Rate Line or True Worth™ Line (orange line with white triangles) is correlated with the historical stock price line. On graph after graph the lines will move in tandem. If the stock price strays away from the earnings line (over or under), inevitably it will come back to earnings.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on Advance Auto Parts Inc shows a picture of undervaluation based upon the historical earnings growth rate of 17.7% and a current P/E of 14.1. Analysts are forecasting the earnings growth to continue at about 9.8%, and when you look at the forecasting graph below, the stock appears in-value (it’s inside of the value corridor of the five orange lines - based on future growth).

Advance Auto Parts Inc: Historical Earnings, Price, Dividends and Normal P/E Since 2003

Performance Table Advance Auto Parts Inc

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 16% capital appreciation (green circle), long-term shareholders of Advance Auto Parts Inc, assuming an initial investment of $1,000, would have received an additional $103.04 in dividends (blue highlighting) that increased their total return from 16% to 16.3% per annum versus 6.9% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for Advance Auto Parts Inc is .85 which is historically normal.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 21 leading analysts reporting to Capital IQ forecast Advance Auto Parts Inc’s long-term earnings growth at 9.8% (orange circle). Advance Auto Parts Inc has medium long-term debt at 34% of capital (red circle). Advance Auto Parts Inc is currently trading at a P/E of 14.1, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 9.8%, Advance Auto Parts Inc’s share price would $133.82 at the end of 2018 (brown circle on EYE Chart), which would represent a 11.2% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in Advance Auto Parts Inc to an equal investment in 10-year Treasury bonds illustrates that Advance Auto Parts Inc’s expected earnings would be 5.9 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

For more information on how to interpret FAST Graphs™, please click here

Disclosure: Long AAP at the time of writing.

How To Interpret FAST Graphs™

Fri, 11 Jan 2013 05:00:00 GMT

FAST Graphs™ are a "tool to think with" and as such, have no agenda of their own. Instead, they are designed to provide "essential fundamentals at a glance" and allow the user to interpret the data according to their own philosophies, strategies and beliefs. In this context, FAST Graphs™ are the deliverer or reporter of important information.

Essentially, the FAST Graphs™ stock research tool provides investors many benefits, but there are four things they do very well.

1. They provide a historical review and instantaneous perspective of how well the business behind the stock has historically performed (the orange earnings justified valuation line).

2. They provide an instantaneous perspective of how the market has historically capitalized or priced the company's operating results or business performance (the blue normal PE ratio line).

3. They provide a precise consensus estimate of leading analysts' near term earnings expectations for a company's current fiscal year and next fiscal year followed by a five year earnings growth consensus estimate (estimated earnings and return calculator graph).

4. They provide the opportunity to override and therefore input the user's own estimates or expectations of the company's future prospects (override function is located on navigation bar).

Tool To Think With

FAST Graphs™ are a dynamic tool that calculates the company's changing growth rates each time a different time period is selected. Therefore, the user can determine such things as whether the company's earnings growth rates are accelerating, decelerating or staying the same, and see major inflection points, if any, with a company's business vividly revealed. This is a major component of the "tools to think with" aspect of this fundamental research tool.

Earnings & Price Correlation

FAST Graphs™ reveal the undeniable correlation and relationship between earnings and stock price on any publicly traded company. This "tool to think with" helps the user determine fair valuation; past, present and future, on any company being examined. Therefore, the user is empowered with the proper perspectives towards making sound buy, sell or hold investing decisions.

The Key

The key to running the FAST Graphs™ tool is the proper utilization of the light brown or tan vertical navigation bar to the left. This navigation bar is what drives the FAST Graphs™. We suggest clicking the drop-down menu box titled "Select Yrs" and running multiple graphs starting with a 15-year default graph and then shortening the graphs to, for example, a 10-year graph, followed by a 5-year graph, followed by a 2-year graph, etc. Any combinations of years, from as short as the last 2 years all the way out to the last 20 years, can be run.

A Dynamic Tool

When running multiple graphs you will notice that FAST Graphs™ is a dynamic tool that automatically calculates and recalculates growth rates and valuations. The most obvious advantage to running dynamic graphs over multiple time periods is to determine whether or not growth rates are accelerating, decelerating or staying the same. Consequently, it might also make sense to focus more on the most recent time frames such as the last five years, two years, etc.

Comprehensive Research More Efficiently

The FAST Graphs™ research tool is designed to help the user more efficiently conduct a comprehensive research effort. Just above the historical graph is a link to the company's website. This enables the researcher to access the company's financials, review any presentations they have provided, read news releases, etc.

Link to Company’s Website/Google Finance/MSN Money

In addition to the link to the company's website on the top of the historical chart, there are three additional links in the tan navigation bar to the left of the graphs. Two of the links, "Summary" and "Quote" will take the user to Google Finance and MSN Money respectively. These links provide additional research that the user can quickly and easily examine.

Link to Zacks’ Estimates

The final link at the bottom of the navigation bar "To Find Other Estimates or Symbols" takes the user to the MSN Money page where Zacks' earnings estimates can be reviewed. This provides the user a cross-check of the earnings estimates that can be compared to the Standard & Poor's Corp. Capital IQ that FAST Graphs™ defaults to.

The following screenshots depict all of the historical and forecasting graphics available with FAST Graphs™. Remember, the live fully functioning FAST Graphs™ are dynamic tools that can be utilized instantly and easily provide a comprehensive perspective of a stock, how its business has performed and how the market has value that performance over time.

Historical FAST Graphs™

The historical charts provide you historical information. This includes historical growth rates, normal P/E ratios, earnings per share, dividends, etc. In other words, they tell you what has happened and how the stock price has reacted to what has happened. Running multiple graphs allows you to determine whether earnings growth has accelerated, decelerated or stayed the same.

PE & Interest Rates and Sales & Price/Sales

Regarding the red graphs with the blue lines, the first one simply graphs interest rates for whatever time frame you are drawing, and either the year-end PE or year-end P/FFO, whichever is appropriate. If you point your curser at the top of the red area a pop-up will appear showing you what the interest rate on a 10-year treasury was on that date. If you put your mouse pointer on the dark blue squares on the dark blue line, the year-end PE or P/FFO will pop up.

In theory, there should be an inverse relationship between the blue line and the red shaded area. In other words, during normal times, as interest rates would rise, PE ratios would fall, and vice-versa. However, since the irrational exuberant period (1999-2001), there has been a direct relationship. As interest rates have fallen so have PEs. Nevertheless, the point of those graphs are to allow you to see what normal PE ratios (P/FFO) for the company have been, and whether or not interest rates had any effect.

The second graph is simply sales (the red shaded area) and price (the blue line) overlaid in order to determine the current and historical price to sales. This is an important valuation measurement that this graph reveals. When you point to the red shaded are, sales in millions and date will pop up. When you point to the blue line, the price to sales ratio will pop up. This graph helps you determine whether the company’s current price to sale ratio is high, low or normal.

Performance Graph

The Performance graph calculates the performance of the stock over whatever time frame has been graphed. The dates that the performance is measured against are listed at the top of the graph. If the company pays dividends, a dividend cash flow table will be included. The performance is calculated as if the dividends were paid out and not reinvested. Therefore, you can see the entire performance that came from dividends, the entire performance that came from capital appreciation, and the total return combination of both.

Forecasting Graph

The Earnings and Price Return Calculator (forecasting charts) plot weekly closing prices, and the last plot is the previous day’s close. The dark orange line is calculated using one of three formulas. Follow this link here to the definitions. However, once the PE valuation is calculated, the lighter orange lines above and below are drawn at the same slope, however, they are 10% increments above and below the dark orange line. Notice they are parallel. The scale to the right tells you what PE ratio each of the orange and blue lines on this graph represent. To be clear, if the price is touching one of those lines, then it is trading at the PE ratio that can be determined by the scale to the right. Again, assuming this stock is precisely touching one of those lines. If not, then you simply eyeball extrapolate between the two.

10-Year Earnings Yield Estimate (EYE Chart)

The EYE ratio chart and table, which stands for Earnings Yield Estimator, generates the table that translates the Estimated Earnings and Return Calculator graph into numbers. The table is based on whatever earnings estimate is found on the Estimated Earnings and Return Calculator. However, you do have the option of over-riding the earnings estimate to a higher or lower number according to your belief, and a new EYE table will be generated based on your over-ride. The basic idea is to mathematically determine whether or not an investment in a prospective company justifies you for the risk you are assuming based on the earnings yield.

The columns are color-coded in order to provide a quick perspective of certain relationships. When the column turns blue, this indicates that the cumulative dividend yield would now surpass the cumulative interest payments from the 10-year Treasury bond it is compared to in yellow.

Importantly, focus on the columns at the top of the table which tell you what you are looking at in each column. The brown cell in the Target Prc Est Tot Ret Column indicates the last price for the fiscal year and the rate of return it represents.

To summarize, the EYE ratio estimator simply puts the estimated earnings and return calculator picture into numbers and compares it to an equal investment in a 10-year Treasury bond.

(End of Article)

AZZ Inc: Fundamental Stock Research Analysis

Thu, 10 Jan 2013 21:30:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 1999. A quick glance vividly reveals the historical operating record of the company.

AZZ Incorporated (AZZ) is an electrical equipment and components manufacturer, serving the worldwide markets of power generation, transmission and distribution, and the general industrial markets, and a provider of hot dip galvanizing services to the steel fabrication market nationwide and in Canada.

This article will reveal the business prospects of AZZ Inc through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on AZZ Inc shows a picture of in-value based upon the historical earnings growth rate of 17.8% and a current P/E of 17.8. Analysts are forecasting the earnings growth to continue at about 13%, and when you look at the forecasting graph below, the stock currently is priced at the high end of our valuation corridor (it’s inside of the value corridor of the five orange lines - based on future growth).

AZZ Inc: Historical Earnings, Price, Dividends and Normal P/E Since 1999

Performance Table AZZ Inc

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 22.5% capital appreciation (green circle), long-term shareholders of AZZ Inc, assuming an initial investment of $1,000, would have received an additional $707.47 in dividends (blue highlighting) that increased their total return from 22.5% to 22.9% per annum versus 2.6% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for AZZ Inc is 1.94 which is historically high.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 4 leading analysts reporting to Capital IQ forecast AZZ Inc’s long-term earnings growth at 13% (orange circle). AZZ Inc has medium long-term debt at 38% of capital (red circle). AZZ Inc is currently trading at a P/E of 17.8, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 13%, AZZ Inc’s share price would $67.75 at the end of 2018 (brown circle on EYE Chart), which would represent a 12.3% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in AZZ Inc to an equal investment in 10-year Treasury bonds illustrates that AZZ Inc’s expected earnings would be 6 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

For more information on how to interpret FAST Graphs™, please click here.

Disclosure: No position at the time of writing.

Towers Watson & Co: Fundamental Stock Research Analysis

Tue, 08 Jan 2013 21:15:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 2000. A quick glance vividly reveals the historical operating record of the company.

Towers Watson (TW) is a leading global professional services company that helps organizations improve performance through effective people, risk and financial management. The company offers solutions in the areas of benefits, talent management, rewards, and risk and capital management.

This article will reveal the business prospects of Towers Watson & Co through the lens of FAST Graphs – fundamentals analyzer software tool. Therefore, it is offered as the first step before a more comprehensive research effort. Our objective is to provide companies that have excellent historical records and appear reasonably priced based on past, present and future data and expectations.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on Towers Watson & Co shows a picture of undervaluation based upon the historical earnings growth rate of 14.2% and a current P/E of 12.6. Analysts are forecasting the earnings growth to continue at about 12%, and when you look at the forecasting graph below, the stock appears undervalued (it’s inside of the value corridor of the five orange lines - based on future growth).

Towers Watson & Co: Historical Earnings, Price, Dividends and Normal P/E Since 2000

Performance Table Towers Watson & Co

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 10.4% capital appreciation (green circle), long-term shareholders of Towers Watson & Co, assuming an initial investment of $1,000, would have received an additional $181.95 in dividends (blue highlighting) that increased their total return from 10.4% to 10.9% per annum versus 1.7% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for Towers Watson & Co is 1.20 which is historically normal.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 9 leading analysts reporting to Capital IQ forecast Towers Watson & Co’s long-term earnings growth at 12% (orange circle). Towers Watson & Co has low long-term debt at 19% of capital (red circle). Towers Watson & Co is currently trading at a P/E of 12.6, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 12%, Towers Watson & Co’s share price would $131.94 at the end of 2018 (brown circle on EYE Chart), which would represent a 16.8% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in Towers Watson & Co to an equal investment in 10-year Treasury bonds illustrates that Towers Watson & Co’s expected earnings would be 8 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

Disclosure: No position at the time of writing.

Johnson Controls Inc: Fundamental Stock Research Analysis

Mon, 07 Jan 2013 19:54:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 1999. A quick glance vividly reveals the historical operating record of the company.

This article will reveal the business prospects of Johnson Controls Inc (JCI) through the lens of FAST Graphs – fundamentals analyzer software tool.

Earnings Determine Market Price: The following earnings and price correlated FAST Graphs™ clearly illustrates the importance of earnings. The Earnings Growth Rate Line or True Worth™ Line (orange line with white triangles) is correlated with the historical stock price line. On graph after graph the lines will move in tandem. If the stock price strays away from the earnings line (over or under), inevitably it will come back to earnings.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on Johnson Controls Inc shows a slight picture of undervaluation based upon the historical earnings growth rate of 10.6% and a current P/E of 13.6. Analysts are forecasting the earnings growth to continue at about 14.7%, and when you look at the forecasting graph below, the stock appears undervalued (it’s inside of the value corridor of the five orange lines - based on future growth).

Johnson Controls Inc: Historical Earnings, Price, Dividends and Normal P/E Since 1999

Performance Table Johnson Controls Inc

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 8.6% capital appreciation (green circle), long-term shareholders of Johnson Controls Inc, assuming an initial investment of $1,000, would have received an additional $567.13 in dividends (blue highlighting) that increased their total return from 8.6% to 9.9% per annum versus 2.6% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for Johnson Controls Inc is .51 which is historically normal.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 21 leading analysts reporting to Capital IQ forecast Johnson Controls Inc’s long-term earnings growth at 14.7% (orange circle). Johnson Controls Inc has medium long-term debt at 31% of capital (red circle). Johnson Controls Inc is currently trading at a P/E of 13.6, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 14.7%, Johnson Controls Inc’s share price would $81.96 at the end of 2018 (brown circle on EYE Chart), which would represent a 19.8% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in Johnson Controls Inc to an equal investment in 10-year Treasury bonds illustrates that Johnson Controls Inc’s expected earnings would be 9.2 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

Disclosure: Long JCI at the time of writing.

3M Co: Fundamental Stock Research Analysis

Mon, 07 Jan 2013 17:22:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 1999. A quick glance vividly reveals the historical operating record of the company.

This article will reveal the business prospects of 3M Co (MMM) through the lens of FAST Graphs – fundamentals analyzer software tool.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on 3M Co shows a picture of in-value based upon the historical earnings growth rate of 9% and a current P/E of 15.1. Analysts are forecasting the earnings growth to continue at about 8.9%, and when you look at the forecasting graph below, the stock appears in-value (it’s inside of the value corridor of the five orange lines - based on future growth).

3M Co: Historical Earnings, Price, Dividends and Normal P/E Since 1999

Performance Table 3M Co

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 7.3% capital appreciation (green circle), long-term shareholders of 3M Co, assuming an initial investment of $1,000, would have received an additional $664.17 in dividends (blue highlighting) that increased their total return from 7.3% to 9% per annum versus 2.6% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for 3M Co is 2.23 which is historically low.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 14 leading analysts reporting to Capital IQ forecast 3M Co’s long-term earnings growth at 8.9% (orange circle). 3M Co has low long-term debt at 21% of capital (red circle). 3M Co is currently trading at a P/E of 15.1, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 8.9 %, 3M Co’s share price would $157.73 at the end of 2018 (brown circle on EYE Chart), which would represent a 11.1% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in 3M Co to an equal investment in 10-year Treasury bonds illustrates that 3M Co’s expected earnings would be 5.3 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

Disclosure: No position at the time of writing.

UGI Corp: Fundamental Stock Research Analysis

Fri, 04 Jan 2013 20:44:00 GMT

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings per share since 1999. A quick glance vividly reveals the historical operating record of the company.

This article will reveal the business prospects of UGI Corp (UGI) through the lens of FAST Graphs – fundamentals analyzer software tool.

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on UGI Corp shows a picture of in-value based upon the historical earnings growth rate of 13.2% and a current P/E of 16.2. Analysts are forecasting the earnings growth to continue at about 12%, and when you look at the forecasting graph below, the stock appears in-value (it’s inside of the value corridor of the five orange lines - based on future growth).

UGI Corp: Historical Earnings, Price, Dividends and Normal P/E Since 1999

Performance Table UGI Corp

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident. In addition to the 10.9% capital appreciation (green circle), long-term shareholders of UGI Corp, assuming an initial investment of $1,000, would have received an additional $1239.22 in dividends (blue highlighting) that increased their total return from 10.9% to 12.9% per annum versus 2.4% in the S&P 500.

A further indication of valuation can be seen by examining a company’s current P/S ratio relative to its historical P/S ratio. The current P/S ratio for UGI Corp is .58 which is historically normal.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1. The rate of change (growth rate) of the company’s earnings

2. The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound and profitable performance.

The consensus of 5 leading analysts reporting to Capital IQ forecast UGI Corp’s long-term earnings growth at 12% (orange circle). UGI Corp has medium long-term debt at 50% of capital (red circle). UGI Corp is currently trading at a P/E of 16.2, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, based upon forecasted earnings growth of 12%, UGI Corp’s share price would $63.73 at the end of 2018 (brown circle on EYE Chart), which would represent a 14.4% annual rate of total return which includes dividends paid (yellow highlighting).

Earnings Yield Estimates

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in UGI Corp to an equal investment in 10-year Treasury bonds illustrates that UGI Corp’s expected earnings would be 6.7 (purple circle) times that of the 10-year T-bond interest (see EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

Disclosure: No position at the time of writing.