price to sales ratio
ENCANA CORP. $24 (Toronto symbol ECA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 740.9 million; Market cap: $17.8 billion; Price-to-sales ratio: 2.6; Dividend yield: 1.3%; TSINetwork Rating: Average; www.encana.com) has agreed to sell its operations in Alberta’s Bighorn area to privately held Jupiter Resources. Encana will get $1.8 billion when the sale closes in the next few weeks (all amounts except share price and market cap in U.S. dollars). To put that in context, the company earned $515 million, or $0.70 a share, in the quarter ended March 31, 2014. The company is also selling a gas-fired power plant and its 50% stake in a second plant, both in Alberta, for an undisclosed sum....
BOMBARDIER INC. (Toronto symbols BBD.A $3.81 and BBD.B $3.75; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.7 billion; Market cap: $6.4 billion; Price-to-sales ratio: 0.4; Dividend yield: 2.5%; TSINetwork Rating: Average; www.bombardier.com) has received new orders for up to 48 of its CSeries passenger jets. These are the first orders since a problem with the plane’s engine forced Bombardier to suspend test flights in May 2014. The engine’s maker, Pratt & Whitney, has addressed this issue, and Bombardier expects to begin delivering these planes in 2015. Including these new deals, the company now has firm orders for 205 CSeries planes. If buyers exercise all their options to buy additional aircraft, Bombardier’s total orders would rise to 495 planes and be worth about $35 billion U.S....
LINAMAR CORP. $64 (Toronto symbol LNR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 64.8 million; Market cap: $4.1 billion; Price-to-sales ratio: 1.1; Dividend yield: 0.6%; TSINetwork Rating: Average; www.linamar.com) gets around 80% of its revenue by making engines, transmissions and other precision-machined parts for automakers. It has 44 plants in North America, Europe and Asia. The remaining 20% of Linamar’s revenue mainly comes from self-propelled, scissor-type elevating work platforms, which it sells under the Skyjack name. The company also makes other industrial machinery, such as parts for wind farms. Pent-up car demand boosted results...
BHP BILLITON LTD. ADRs $72 (New York symbol BHP; Conservative Growth Portfolio, Resources sector; ADRs outstanding: 1.6 billion; Market cap: $115.2 billion; Price-to-sales ratio: 2.9; Dividend yield: 3.3%; TSINetwork Rating: Average; www. bhpbilliton.com) is the world’s largest mining company, with major operations in Australia, South Africa, the U.S. and the U.K.
BHP’s main products include iron ore (31% of revenue; 43% of earnings), oil and potash (20%; 32%), copper (18%; 16%), coal (17%; 6%), and aluminum, manganese and nickel (14%; 3%). BHP cuts its risk by focusing on projects with high-quality, long-lasting reserves.
BHP’s main products include iron ore (31% of revenue; 43% of earnings), oil and potash (20%; 32%), copper (18%; 16%), coal (17%; 6%), and aluminum, manganese and nickel (14%; 3%). BHP cuts its risk by focusing on projects with high-quality, long-lasting reserves.
Oil and gas expansion spurred results
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VERIZON COMMUNICATIONS INC. $52 (New York symbol VZ, Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 4.1 billion; Market cap: $213.2 billion; Price-to-sales ratio: 1.3; Dividend yield: 4.1%; TSINetwork Rating: Average; www.verizon.com) recently completed its $130-billion purchase of the 45% of Verizon Wireless that it didn’t already own from U.K.-based Vodafone Group.
The company now owns 100% of Verizon Wireless, which sells wireless services to 104.6 million subscribers in the U.S. Wireless now supplies 68% of Verizon’s revenue. The remaining 32% comes from its 20.4 million regular phone customers and 16.2 million high-speed Internet and digital TV subscribers. Thanks mainly to the Verizon Wireless purchase, the company’s earnings per share jumped 24.7% in the three months ended June 30, 2014, to $0.91 from $0.73 a year earlier. Revenue gained 5.7%, to $31.5 billion from $29.8 billion.
The company should earn $3.54 a share in 2014, and the stock trades at 14.7 times that forecast. The $2.12 dividend yields 4.1%.
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The company now owns 100% of Verizon Wireless, which sells wireless services to 104.6 million subscribers in the U.S. Wireless now supplies 68% of Verizon’s revenue. The remaining 32% comes from its 20.4 million regular phone customers and 16.2 million high-speed Internet and digital TV subscribers. Thanks mainly to the Verizon Wireless purchase, the company’s earnings per share jumped 24.7% in the three months ended June 30, 2014, to $0.91 from $0.73 a year earlier. Revenue gained 5.7%, to $31.5 billion from $29.8 billion.
The company should earn $3.54 a share in 2014, and the stock trades at 14.7 times that forecast. The $2.12 dividend yields 4.1%.
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CONAGRA FOODS INC. $31 (New York symbol CAG; Income Portfolio, Consumer sector; Shares outstanding: 422.5 million; Market cap: $13.1 billion; Price-to-sales ratio: 0.7; Dividend yield: 3.2%; TSINetwork Rating: Above Average; www.conagrafoods.com) has paid $93 million for Chinese potato producer TaiMei Potato Industry Ltd.
This is ConAgra’s first potato-processing facility in China. The purchase will help the company increase sales of its Lamb Weston frozen potato products in China and other parts of Asia.
ConAgra is a buy.
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This is ConAgra’s first potato-processing facility in China. The purchase will help the company increase sales of its Lamb Weston frozen potato products in China and other parts of Asia.
ConAgra is a buy.
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EBAY INC. $53 (Nasdaq symbol EBAY; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 1.2 billion; Market cap: $63.6 billion; Price-to-sales ratio: 4.0; No dividends paid; TSINetwork Rating: Above Average; www.ebay.com) has signed a deal with Russia Post that will speed up delivery of foreign goods Russian buyers purchase on eBay’s websites.
As well, eBay will soon launch a website in Russia that will let domestic merchants sell more of their goods online.
Expanding in Russia adds risk, particularly as the U.S. and Europe plan to impose new economic sanctions against the country in response to its annexation of Crimea. However, Russia only accounts for a small fraction of eBay’s revenue and earnings.
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As well, eBay will soon launch a website in Russia that will let domestic merchants sell more of their goods online.
Expanding in Russia adds risk, particularly as the U.S. and Europe plan to impose new economic sanctions against the country in response to its annexation of Crimea. However, Russia only accounts for a small fraction of eBay’s revenue and earnings.
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STATE STREET CORP. $72 (New York symbol STT; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 425.0 million; Market cap: $30.6 billion; Price-to-sales ratio: 3.2; Dividend yield: 1.7%; TSINetwork Rating: Average; www. statestreet.com) sells accounting and administrative services to large institutional investors, such as mutual funds and pension plans.
The company’s fee income rises and falls with the value of the securities it manages. Thanks to improving stock markets and new contracts, earnings rose 5.6% in the quarter ended June 30, 2014, to $603 million from $571 million a year earlier.
State Street spent $410 million on share buybacks in the latest quarter. As a result, earnings per share gained 12.1%, to $1.39 from $1.24. Revenue rose 3.7%, to $2.7 billion from $2.6 billion.
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The company’s fee income rises and falls with the value of the securities it manages. Thanks to improving stock markets and new contracts, earnings rose 5.6% in the quarter ended June 30, 2014, to $603 million from $571 million a year earlier.
State Street spent $410 million on share buybacks in the latest quarter. As a result, earnings per share gained 12.1%, to $1.39 from $1.24. Revenue rose 3.7%, to $2.7 billion from $2.6 billion.
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MOTOROLA SOLUTIONS INC. $65 (New York symbol MSI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 255.3 million; Market cap: $16.6 billion; Price-to-sales ratio: 2.0; Dividend yield: 1.9%; TSINetwork Rating: Average; www.motorolasolutions.com) took its current form on January 4, 2011, when the old Motorola Inc. spun off its struggling cellphone business, Motorola Mobility, as a separate firm. The remaining operations became Motorola Solutions after the breakup.
The company makes specialized communications equipment, such as radios for police and fire vehicles. Government clients account for about 70% of its revenue.
Motorola Solutions recently agreed to sell its enterprise division, which provides the remaining 30% of its revenue. This business makes bar-code scanners and interactive kiosks for corporate clients.
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The company makes specialized communications equipment, such as radios for police and fire vehicles. Government clients account for about 70% of its revenue.
Motorola Solutions recently agreed to sell its enterprise division, which provides the remaining 30% of its revenue. This business makes bar-code scanners and interactive kiosks for corporate clients.
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CINTAS CORP. $63 (Nasdaq symbol CTAS; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 117.0 million; Market cap: $7.4 billion; Price-to-sales ratio: 1.7; Dividend yield: 1.2%; TSINetwork Rating: Average; www.cintas.com) earned $374.4 million in its 2014 fiscal year, which ended May 31, 2014, up 18.7% from $315.4 million in 2013. Per-share earnings rose 21.0%, to $3.05 from $2.52, on fewer shares outstanding. If you exclude a gain on the sale of Cintas’s document-shredding business, it would have earned $2.79 a share in fiscal 2014.
Revenue rose 5.5%, to $4.6 billion from $4.3 billion, as the improving economy spurred demand for Cintas’s uniform-rental and office-cleaning services.
The company will probably earn $3.06 to $3.15 a share in fiscal 2015. The stock trades at a high, but still reasonable, 20.3 times the midpoint of that range.
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Revenue rose 5.5%, to $4.6 billion from $4.3 billion, as the improving economy spurred demand for Cintas’s uniform-rental and office-cleaning services.
The company will probably earn $3.06 to $3.15 a share in fiscal 2015. The stock trades at a high, but still reasonable, 20.3 times the midpoint of that range.
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