price to sales ratio
BAXALTA INC. $31 (New York symbol BXLT; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 544.3 million; Market cap: $16.9 billion; Price-to-sales ratio: n.a.; Dividend yield: 0.9%; TSINetwork Rating: Average; www.baxalta.com) makes vaccines and drugs in three main areas: hematology (blood diseases), immunology (immune system) and oncology (cancer).
Before former parent Baxter spun off Baxalta, it bought Germany-based SuppreMol for $225 million. This firm develops drugs for disorders in which the immune system attacks healthy tissue.
Baxter also paid $900 million for the Oncaspar leukemia drug, from Italian pharmaceutical firm Sigma- Tau Finanziaria. Oncaspar has $100 million in annual sales.
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Before former parent Baxter spun off Baxalta, it bought Germany-based SuppreMol for $225 million. This firm develops drugs for disorders in which the immune system attacks healthy tissue.
Baxter also paid $900 million for the Oncaspar leukemia drug, from Italian pharmaceutical firm Sigma- Tau Finanziaria. Oncaspar has $100 million in annual sales.
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BAXTER INTERNATIONAL INC. $39 (New York symbol BAX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 544.3 million; Market cap: $21.2 billion; Price-to-sales ratio: 1.3; Dividend yield: 1.2%; TSINetwork Rating: Average; www.baxter.com) makes a variety of medical devices, such as intravenous pumps and kidney-dialysis equipment. Hospital products supply 60% of its revenue; the remaining 40% comes from renal (kidney disease) equipment.
On July 1, 2015, the company spun off Baxalta, a maker of vaccines and other drugs. Investors received one Baxalta share as a tax-deferred dividend for every Baxter share they held.
Baxter still owns 19.5% of Baxalta; it plans to sell or distribute these shares within five years. As a separate firm, Baxter expects its research costs to fall from 6% of revenue to less than 5.5%.
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On July 1, 2015, the company spun off Baxalta, a maker of vaccines and other drugs. Investors received one Baxalta share as a tax-deferred dividend for every Baxter share they held.
Baxter still owns 19.5% of Baxalta; it plans to sell or distribute these shares within five years. As a separate firm, Baxter expects its research costs to fall from 6% of revenue to less than 5.5%.
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GANNETT CO., INC. $13 (New York symbol GCI; Conservative Growth Portfolio, Consumer sector: Shares outstanding: 114.9 million; Market cap: $1.5 billion; Price-to-sales ratio: n.a.; Dividend yield: 4.9%; TSINetwork Rating: Average; www.gannett.com) publishes daily newspapers in 92 U.S. markets, including its flagship newspaper, USAToday, as well as 19 papers in the U.K. It also has over 200 magazines and other publications.
As a separate firm, Gannett should earn $1.98 a share in 2015, and the stock trades at just 6.6 times that figure. The $0.64 dividend yields 4.9%.
Gannett is still a buy.
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As a separate firm, Gannett should earn $1.98 a share in 2015, and the stock trades at just 6.6 times that figure. The $0.64 dividend yields 4.9%.
Gannett is still a buy.
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TEGNA INC. $29 (New York symbol TGNA; Conservative Growth Portfolio, Consumer sector: Shares outstanding: 226.9 million; Market cap: $6.6 billion; Price-to-sales ratio: 1.1; Dividend yield: 1.9%; TSINetwork Rating: Average; www.tegna.com) owns 46 TV stations, as well as websites that attract over 39 million unique visitors a month.
Gannett spun off its newspaper-publishing operations on June 29, 2015.
Investors received two shares of the new Gannett for each share they held. The rest of the company became Tegna. Investors only become liable for capital gains taxes when they sell.
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Gannett spun off its newspaper-publishing operations on June 29, 2015.
Investors received two shares of the new Gannett for each share they held. The rest of the company became Tegna. Investors only become liable for capital gains taxes when they sell.
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PAYPAL HOLDINGS INC. $38 (Nasdaq symbol PYPL; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 1.2 billion; Market cap: $45.6 billion; Price-to-sales ratio: n.a.; No dividends paid; TSINetwork Rating: Above Average; www.paypal.com) processes online transactions, including purchases made through eBay’s auction websites. In the past few years, it has expanded into stores and mobile payments. eBay investors received one PayPal share for each eBay share they held. They only become liable for capital gains taxes when they sell their new shares. Operating as a separate firm will let PayPal pursue alliances with more retailers, cutting its reliance on eBay. At the same time, it continues to invest in its mobile operations, which will help it profit as more people buy goods and pay bills through smartphones.
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AMERICAN EXPRESS CO. $76 (New York symbol AXP, Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.0 billion; Market cap: $76.0 billion; Price-to-sales ratio: 2.4; Yield: 1.5%; TSINetwork Rating: Average; www.americanexpress.com) issues the only credit card Costco accepts at its U.S. outlets. However, this deal expires in March 2016, so fewer Costco shoppers are signing up for new cards. As a result, Amex will likely sell these loans.
The proceeds would help the company fund new services. For example, it recently launched Amex Express Checkout. Similar to PayPal (see page 73), this service makes it easier for U.S. cardholders to buy goods online.
Meanwhile, Amex earned $1.47 billion in the second quarter of 2015, down 3.7% from $1.53 billion a year earlier. The 2014 quarter included 100% of Amex’s business-travel division, which it later merged into a 50/50 joint venture. Per-share profits fell 0.7%, to $1.42 from $1.43, on fewer shares outstanding.
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The proceeds would help the company fund new services. For example, it recently launched Amex Express Checkout. Similar to PayPal (see page 73), this service makes it easier for U.S. cardholders to buy goods online.
Meanwhile, Amex earned $1.47 billion in the second quarter of 2015, down 3.7% from $1.53 billion a year earlier. The 2014 quarter included 100% of Amex’s business-travel division, which it later merged into a 50/50 joint venture. Per-share profits fell 0.7%, to $1.42 from $1.43, on fewer shares outstanding.
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J.P. MORGAN CHASE & CO. $69 (New York symbol JPM; Income Portfolio, Finance sector; Shares outstanding: 3.7 billion; Market cap: $255.3 billion; Price-to-sales ratio: 2.8; Dividend yield: 2.6%; TSINetwork Rating: Average; www.jpmorganchase.com) has four main divisions: Consumer and Community Banking, which includes branches and credit cards (45% of 2014 revenue, 44% of earnings); Corporate and Investment Bank, including brokerage and underwriting services (36%, 33%); Asset Management (12%, 10%); and Commercial Banking (7%, 13%). About 75% of Morgan’s revenue comes from the U.S.
The bank’s revenue fell 8.3%, from $102.7 billion in 2010 to $94.2 billion in 2014. That’s mainly because it sold some operations to cut its exposure to riskier businesses, such as owning and trading commodities. Low interest rates have also hurt the revenue it receives from new loans.
Even so, earnings jumped 22.5%, from $17.4 billion in 2010 to $21.3 billion in 2012. Per-share profits gained 31.3%, from $3.96 to $5.20, on fewer shares outstanding. Morgan continues to settle lawsuits related to its role in the 2008 financial crisis. As a result, its 2013 earnings fell to $4.35 a share (or a total of $17.9 billion). Earnings recovered to $5.29 a share (or $21.8 billion) in 2014.
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The bank’s revenue fell 8.3%, from $102.7 billion in 2010 to $94.2 billion in 2014. That’s mainly because it sold some operations to cut its exposure to riskier businesses, such as owning and trading commodities. Low interest rates have also hurt the revenue it receives from new loans.
Even so, earnings jumped 22.5%, from $17.4 billion in 2010 to $21.3 billion in 2012. Per-share profits gained 31.3%, from $3.96 to $5.20, on fewer shares outstanding. Morgan continues to settle lawsuits related to its role in the 2008 financial crisis. As a result, its 2013 earnings fell to $4.35 a share (or a total of $17.9 billion). Earnings recovered to $5.29 a share (or $21.8 billion) in 2014.
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WELLS FARGO & CO. $58 (New York symbol WFC; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 5.2 billion; Market cap: $301.6 billion; Price-to-sales ratio: 3.5; Dividend yield: 2.6%; TSINetwork Rating: Average; www.wellsfargo.com) operates through three divisions: Community Banking provides consumer mortgages, loans, credit cards and other financial services (57% of 2014 revenue, 59% of earnings); Wholesale Banking supplies business loans (27%, 32%); and Wealth, Brokerage and Retirement offers wealth management, brokerage and trust services to individuals and institutions, such as pension plans (16%, 9%). The U.S. supplies 95% of Wells Fargo’s revenue.
Weak loan demand and lower interest rates cut the bank’s revenue by 5.0%, from $85.2 billion in 2010 to $80.9 billion in 2011. Loan volumes improved in 2012, causing revenue to rise to $86.1 billion. Lower fee income cut the bank’s revenue to $83.8 billion in 2013. Revenue rebounded to $84.3 billion in 2014, thanks to gains at the bank’s wealth management business.
Earnings jumped 85.5%, from $2.21 a share (or a total of $12.4 billion) in 2010 to $4.10 a share (or $23.1 billion) in 2014.
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Weak loan demand and lower interest rates cut the bank’s revenue by 5.0%, from $85.2 billion in 2010 to $80.9 billion in 2011. Loan volumes improved in 2012, causing revenue to rise to $86.1 billion. Lower fee income cut the bank’s revenue to $83.8 billion in 2013. Revenue rebounded to $84.3 billion in 2014, thanks to gains at the bank’s wealth management business.
Earnings jumped 85.5%, from $2.21 a share (or a total of $12.4 billion) in 2010 to $4.10 a share (or $23.1 billion) in 2014.
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In the past few years, Verizon and AT&T have aggressively expanded their wireless and high-speed Internet networks. That has attracted new users and helped offset falling revenue from traditional phones. But new challengers continue to emerge, like low-cost wireless service from Google and video-streaming services like Netflix, which threaten their fibre optic TV offerings. In response, both AT&T and Verizon are buying up companies that should help them compete— and keep raising their dividends....
CONAGRA FOODS INC. $44 (New York symbol CAG; Income Portfolio, Consumer sector; Shares outstanding: 427.1 million; Market cap: $18.8 billion; Price-to-sales ratio: 1.1; Dividend yield: 2.3%; TSINetwork Rating: Above Average; www.conagrafoods.com) bought Ralcorp Holdings, the largest private-label food maker in the U.S., for $4.75 billion in January 2013. The purchase has not worked out as well as ConAgra had hoped, as strong competition hurt Ralcorp’s sales and earnings. As a result, the company has had to write down this investment by $2.1 billion. In response, ConAgra has launched a restructuring plan aimed at improving Ralcorp’s profitability. This strategy includes better packaging, speeding up deliveries and launching new products. It has also cut its private-label prices, which should help improve Ralcorp’s market share....