price to sales ratio
SONY CORP. ADRs $25 (New York symbol SNE; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.3 billion; Market cap: $32.5 billion; Price-to-sales ratio: 0.4; Dividend suspended in September 2014; TSINetwork Rating: Average; www.sony.com) recently announced plans to sell $2.6 billion worth of new common shares, as well as $1.0 billion of convertible bonds. It will use the proceeds to make more of its industry-leading image sensors for digital cameras, smartphones and tablets.
The company has had trouble selling its own smartphones and other devices, so it makes sense to focus on electronic components. As part of a recent restructuring, Sony quit making cheaper mobile phones for emerging markets, though it still makes higher-priced models for developed nations.
Meanwhile, in its fiscal 2016 first quarter, which ended June 30, 2015, Sony’s revenue fell 17.3%, to $14.8 billion from $17.9 billion a year earlier. In Japanese yen, revenue fell just 0.1%.
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The company has had trouble selling its own smartphones and other devices, so it makes sense to focus on electronic components. As part of a recent restructuring, Sony quit making cheaper mobile phones for emerging markets, though it still makes higher-priced models for developed nations.
Meanwhile, in its fiscal 2016 first quarter, which ended June 30, 2015, Sony’s revenue fell 17.3%, to $14.8 billion from $17.9 billion a year earlier. In Japanese yen, revenue fell just 0.1%.
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CANON INC. ADRs $30 (New York symbol CAJ; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.1 billion; Market cap: $33.0 billion; Price-to-sales ratio: 1.1; Dividend yield: 4.2%; TSINetwork Rating: Above Average; www.canon.com) gets over half of its revenue by making office equipment, mainly printers and copiers. Other products include digital cameras and parts for TVs and medical gear.
Businesses continue to buy more of Canon’s copiers and laser printers, but consumers are taking more pictures with smartphones. That’s hurting the company’s camera sales.
In the three months ended June 30, 2015, Canon’s revenue fell 13.0%, to $8.0 billion from $9.2 billion a year earlier. Without the negative impact of the high U.S. dollar, sales in Japanese yen gained 5.1%. Overall earnings fell 30.2%, to $559.0 million from $800.5 million. Earnings per ADR dropped 29.2%, to $0.51 from $0.72, on fewer ADRs outstanding (each American depositary receipt represents one common share).
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Businesses continue to buy more of Canon’s copiers and laser printers, but consumers are taking more pictures with smartphones. That’s hurting the company’s camera sales.
In the three months ended June 30, 2015, Canon’s revenue fell 13.0%, to $8.0 billion from $9.2 billion a year earlier. Without the negative impact of the high U.S. dollar, sales in Japanese yen gained 5.1%. Overall earnings fell 30.2%, to $559.0 million from $800.5 million. Earnings per ADR dropped 29.2%, to $0.51 from $0.72, on fewer ADRs outstanding (each American depositary receipt represents one common share).
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NEWMONT MINING CORP. $16 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 529.1 million; Market cap: $8.5 billion; Price-to-sales ratio: 1.1; Dividend yield: 0.6%; TSINetwork Rating: Average; www.newmont.com) has purchased the Cripple Creek & Victor gold mine in Colorado for $820 million.
Cripple Creek will produce 350,000 to 400,000 ounces of gold a year once it completes its current expansion in 2016. To put that in context, Newmont expects to produce 4.6 million to 4.9 million ounces in 2015. The mine should last until at least 2026. The company feels it can cut Cripple Creek’s operating costs by 10%. However, like most gold firms, Newmont’s shares will need a gold-price recovery to move significantly higher.
Newmont is still a hold.
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Cripple Creek will produce 350,000 to 400,000 ounces of gold a year once it completes its current expansion in 2016. To put that in context, Newmont expects to produce 4.6 million to 4.9 million ounces in 2015. The mine should last until at least 2026. The company feels it can cut Cripple Creek’s operating costs by 10%. However, like most gold firms, Newmont’s shares will need a gold-price recovery to move significantly higher.
Newmont is still a hold.
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APACHE CORP. $40 (New York symbol APA; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 378.0 million; Market cap: $15.1 billion; Price-to-sales ratio: 1.4; Dividend yield: 2.5%; TSINetwork Rating: Average; www.apachecorp.com) continues to sell overseas properties as part of a plan to focus on its less-risky onshore operations in North America.
The company recently sold stakes in liquefied natural gas projects and other properties in Australia for $5.7 billion and used the cash to repay $2.7 billion of loans. As of June 30, 2015, Apache’s long-term debt was $9.7 billion, or 64% of its market cap. It also held cash of $2.95 billion.
Excluding writedowns and other unusual items, earnings dropped 85.8% in the three months ended June 30, 2015, to $82 million, or $0.22 a share, from $576 million, or $1.49 a share, a year earlier. Revenue fell 39.9%, to $2.0 billion from $3.3 billion. The company now plans to cut its capital spending to between $3.6 billion and $3.9 billion in 2015, down from $10.9 billion in 2014.
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The company recently sold stakes in liquefied natural gas projects and other properties in Australia for $5.7 billion and used the cash to repay $2.7 billion of loans. As of June 30, 2015, Apache’s long-term debt was $9.7 billion, or 64% of its market cap. It also held cash of $2.95 billion.
Excluding writedowns and other unusual items, earnings dropped 85.8% in the three months ended June 30, 2015, to $82 million, or $0.22 a share, from $576 million, or $1.49 a share, a year earlier. Revenue fell 39.9%, to $2.0 billion from $3.3 billion. The company now plans to cut its capital spending to between $3.6 billion and $3.9 billion in 2015, down from $10.9 billion in 2014.
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CHEVRON CORP. $73 (New York symbol CVX; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $138.7 billion; Price-to-sales ratio: 0.9; Dividend yield: 5.9%; TSINetwork Rating: Above Average; www.chevron.com) has sold $11 billion worth of less important businesses since 2014. It should reach its goal of selling $15 billion of assets by 2017.
Even with the sales, the company’s oil output will likely average 3.1 million barrels a day in 2017, up 19.2% from 2.6 million in the second quarter of 2015.
That’s mainly because Chevron plans to start up two big offshore gas projects: its 47.3%-owned Gorgon field, off Australia’s northwest coast, and the nearby Wheatstone field (64.14% owned). Each will also have a plant to convert the gas into a liquid for shipment to buyers in Asia.
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Even with the sales, the company’s oil output will likely average 3.1 million barrels a day in 2017, up 19.2% from 2.6 million in the second quarter of 2015.
That’s mainly because Chevron plans to start up two big offshore gas projects: its 47.3%-owned Gorgon field, off Australia’s northwest coast, and the nearby Wheatstone field (64.14% owned). Each will also have a plant to convert the gas into a liquid for shipment to buyers in Asia.
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NORDSTROM INC. $74 (New York symbol JWN; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 188.2 million; Market cap: $13.9 billion; Price-to-sales ratio: 1.0; Dividend yield: 2.0%; TSINetwork Rating: Average; www.nordstrom.com) owns and operates 304 stores in the U.S. and Canada that mainly sell upscale clothing, accessories and footwear.
In its fiscal 2016 second quarter, which ended August 1, 2015, sales rose 9.1%, to $3.7 billion from $3.4 billion a year earlier. Same-store sales (which exclude contributions from new outlets) rose 4.9%. Earnings gained 14.7%, to $1.09 a share from $0.95.
Toronto-Dominion Bank (Toronto symbol TD) recently agreed to buy the company’s credit card loans for $1.8 billion. Nordstrom will probably use these funds to pay down its total debt of $3.1 billion.
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In its fiscal 2016 second quarter, which ended August 1, 2015, sales rose 9.1%, to $3.7 billion from $3.4 billion a year earlier. Same-store sales (which exclude contributions from new outlets) rose 4.9%. Earnings gained 14.7%, to $1.09 a share from $0.95.
Toronto-Dominion Bank (Toronto symbol TD) recently agreed to buy the company’s credit card loans for $1.8 billion. Nordstrom will probably use these funds to pay down its total debt of $3.1 billion.
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TERADATA CORP. $29 (New York symbol TDC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 141.6 million; Market cap: $4.1 billion; Price-to-sales ratio: 1.5; No dividends paid; TSINetwork Rating: Average; www.teradata.com) makes computers and software that capture and store large amounts of a business’s data. It then analyzes this information and identifies buying habits and other trends.
In the second quarter of 2015, Teradata’s earnings fell 33.3%, to $76 million from $114 million a year earlier. Per-share profits declined 26.4%, to $0.53 from $0.72, on fewer shares outstanding. Revenue slipped 7.8%, to $623 million from $676 million.
Strong competition from bigger firms like IBM and Oracle, as well as cloud-based analytics services, continue to hurt Teradata’s earnings. That’s why the stock trades at just 12.3 times the $2.35 a share the company will probably earn in 2015.
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In the second quarter of 2015, Teradata’s earnings fell 33.3%, to $76 million from $114 million a year earlier. Per-share profits declined 26.4%, to $0.53 from $0.72, on fewer shares outstanding. Revenue slipped 7.8%, to $623 million from $676 million.
Strong competition from bigger firms like IBM and Oracle, as well as cloud-based analytics services, continue to hurt Teradata’s earnings. That’s why the stock trades at just 12.3 times the $2.35 a share the company will probably earn in 2015.
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NCR CORP. $24 (New York symbol NCR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 169.8 million; Market cap: $4.1 billion; Price-to-sales ratio: 0.6; No dividends paid; TSINetwork Rating: Average; www.ncr.com) makes automated teller machines, cash registers, self-serve checkouts and kiosks. The company set up Teradata (see right) as a separate firm in October 2007. It’s now conducting a strategic review, which could lead to more divisions being sold or spun off.
Meanwhile, NCR lost $344 million, or $2.03 a share, in the three months ended June 30, 2015. A year earlier, it earned $90 million, or $0.53 a share.
The loss mainly came from a one-time charge stemming from NCR’s transfer of an underfunded U.K. pension plan to an insurance company. Without unusual items, it earned $0.66 a share in the latest quarter, down 2.9% from $0.68.
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Meanwhile, NCR lost $344 million, or $2.03 a share, in the three months ended June 30, 2015. A year earlier, it earned $90 million, or $0.53 a share.
The loss mainly came from a one-time charge stemming from NCR’s transfer of an underfunded U.K. pension plan to an insurance company. Without unusual items, it earned $0.66 a share in the latest quarter, down 2.9% from $0.68.
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KEYSIGHT TECHNOLOGIES INC. $31 (New York symbol KEYS; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 169.0 million; Market cap: $5.2 billion; Price-to-sales ratio: 1.8; No dividends paid; TSINetwork Rating: Average; www.keysight.com) makes equipment for testing electronics. Clients include makers of computer chips (44% of total revenue) and communications gear (33%), as well as aerospace and defence firms (23%).
In its fiscal 2015 third quarter, which ended July 31, 2015, the company’s revenue fell 12.2%, to $665 million from $757 million a year earlier. Excluding unusual items, earnings declined 29.3%, to $94 million, or $0.55 a share, from $133 million, or $0.80. It spends 14% of its revenue on research.
As of July 31, 2015, Keysight held cash of $1.0 billion, or $5.92 a share. Its long-term debt of $1.1 billion is equal to 21% of its market cap. In August 2015, the company used $600 million of its cash to buy U.K.-based Anite, a software maker whose products will make Keysight’s testing equipment for wireless handsets perform better.
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In its fiscal 2015 third quarter, which ended July 31, 2015, the company’s revenue fell 12.2%, to $665 million from $757 million a year earlier. Excluding unusual items, earnings declined 29.3%, to $94 million, or $0.55 a share, from $133 million, or $0.80. It spends 14% of its revenue on research.
As of July 31, 2015, Keysight held cash of $1.0 billion, or $5.92 a share. Its long-term debt of $1.1 billion is equal to 21% of its market cap. In August 2015, the company used $600 million of its cash to buy U.K.-based Anite, a software maker whose products will make Keysight’s testing equipment for wireless handsets perform better.
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AGILENT TECHNOLOGIES INC. $36 (New York symbol A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 332.0 million; Market cap: $12.0 billion; Price-to-sales ratio: 1.6; Dividend yield: 1.1%; TSINetwork Rating: Average; www.agilent.com) split into two publicly traded firms on November 1, 2014.
One company kept the Agilent name and stock symbol and focuses on testing equipment for medical research labs. The other firm, called Keysight Technologies (see right), makes testing systems for electronics.
Under the spinoff, Agilent shareholders received one Keysight share for every two shares they held.
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One company kept the Agilent name and stock symbol and focuses on testing equipment for medical research labs. The other firm, called Keysight Technologies (see right), makes testing systems for electronics.
Under the spinoff, Agilent shareholders received one Keysight share for every two shares they held.
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