price to sales ratio
NEWELL RUBBERMAID INC. $32 (New York symbol NWL; Aggressive Growth and Income Portfolios, Consumer sector; Shares outstanding: 276.7 million; Market cap: $8.9 billion; Price-to-sales ratio: 1.6; Dividend yield: 2.1%; TSINetwork Rating: Average; www.newellrubbermaid.com) is buying Ignite Holdings, a private company that makes reusable water bottles and thermal mugs under the Contigo and Avex brands.
Newell will pay $308 million when it completes the purchase later this year. That’s equal to 57.6% of the $534.9 million, or $1.83 a share, that Newell earned in 2013. The new operations will add $125 million to its annual sales of $5.7 billion.
The company feels its expertise will cut Ignite’s manufacturing costs. Newell can also use its extensive global distribution networks to increase Ignite’s sales.
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Newell will pay $308 million when it completes the purchase later this year. That’s equal to 57.6% of the $534.9 million, or $1.83 a share, that Newell earned in 2013. The new operations will add $125 million to its annual sales of $5.7 billion.
The company feels its expertise will cut Ignite’s manufacturing costs. Newell can also use its extensive global distribution networks to increase Ignite’s sales.
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PEPSICO INC. $89 (New York symbol PEP; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.5 billion; Market cap: $133.5 billion; Price-to-sales ratio: 2.1; Dividend yield: 3.0%; TSINetwork Rating: Above Average; www.pepsico.com) continues to face pressure from activist investor Nelson Peltz to spin off or sell its beverage business, which has suffered as health-conscious consumers cut their soft drink consumption. Peltz owns about 1% of the company’s shares.
The beverage operations supply 48% of PepsiCo’s sales. The remaining 52% comes from its snack food operations, which include Frito-Lay potato chips and Quaker Oats cereals.
The company has rejected the proposal because it feels making both soft drinks and snacks gives it manufacturing, distribution and marketing advantages. Instead, it aims to boost its profits with a new five-year plan that includes automating more of its bottling plants and closing less-efficient facilities. PepsiCo will use the resulting savings to buy back $5 billion worth of its shares in 2014.
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The beverage operations supply 48% of PepsiCo’s sales. The remaining 52% comes from its snack food operations, which include Frito-Lay potato chips and Quaker Oats cereals.
The company has rejected the proposal because it feels making both soft drinks and snacks gives it manufacturing, distribution and marketing advantages. Instead, it aims to boost its profits with a new five-year plan that includes automating more of its bottling plants and closing less-efficient facilities. PepsiCo will use the resulting savings to buy back $5 billion worth of its shares in 2014.
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BROADRIDGE FINANCIAL SERVICES INC. $41 (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 120.7 million; Market cap: $4.9 billion; Price-to-sales ratio: 2.0; Dividend yield: 2.0%; TSINetwork Rating: Average; www.broadridge.com) began trading on April 2, 2007, after former parent Automatic Data Processing handed out Broadridge stock to its own investors as a special dividend.
The company serves the investment industry in three main areas: investor communications, securities processing and transaction clearing. It processes 85% of all proxy votes in the U.S.
Broadridge earned $55.1 million in its fiscal 2014 third quarter, which ended March 31, 2014. That’s up 11.3% from $49.5 million a year earlier. Earnings per share rose 12.8%, to $0.44 from $0.39.
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The company serves the investment industry in three main areas: investor communications, securities processing and transaction clearing. It processes 85% of all proxy votes in the U.S.
Broadridge earned $55.1 million in its fiscal 2014 third quarter, which ended March 31, 2014. That’s up 11.3% from $49.5 million a year earlier. Earnings per share rose 12.8%, to $0.44 from $0.39.
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TERADATA CORP. $43 (New York symbol TDC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 157.7 million; Market cap: $6.8 billion; Price-to-sales ratio: 2.6; No dividends paid; TSINetwork Rating: Average; www.teradata.com) was a wholly owned subsidiary of NCR Corp. until it was spun off on October 1, 2007. Teradata is up 65% since then.
The company’s technology captures and stores large amounts of a business’s data, including its sales and inventory. Teradata then analyzes this information and identifies buying habits and trends, which helps its clients improve their decision-making.
In the three months ended March 31, 2014, the company’s earnings rose 19.2%, to $87 million from $73 million a year earlier. Teradata spent $86 million on share buybacks in the latest quarter. Due to fewer shares outstanding, earnings per share gained 25.6%, to $0.54 from $0.43. Revenue rose 7.0%, to $628 million from $587 million.
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The company’s technology captures and stores large amounts of a business’s data, including its sales and inventory. Teradata then analyzes this information and identifies buying habits and trends, which helps its clients improve their decision-making.
In the three months ended March 31, 2014, the company’s earnings rose 19.2%, to $87 million from $73 million a year earlier. Teradata spent $86 million on share buybacks in the latest quarter. Due to fewer shares outstanding, earnings per share gained 25.6%, to $0.54 from $0.43. Revenue rose 7.0%, to $628 million from $587 million.
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AGILENT TECHNOLOGIES INC. $57 (New York symbol A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 333.0 million; Market cap: $19.0 billion; Price-to-sales ratio: 2.8; Dividend yield: 0.9%; TSINetwork Rating: Average; www.agilent.com) was a unit of Hewlett- Packard until 1999, when Hewlett spun it off as a separate firm. Agilent now plans to break itself into two publicly traded companies in November 2014.
One firm will keep the Agilent name and focus on testing equipment for medical-research labs. This business supplies 60% of Agilent’s revenue and will pay a dividend comparable to the current 0.9% yield.
The second company, called Keysight Technologies, will make testing systems for improving electronics, such as cellphones and computer equipment. Keysight will not pay a dividend, at least initially.
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One firm will keep the Agilent name and focus on testing equipment for medical-research labs. This business supplies 60% of Agilent’s revenue and will pay a dividend comparable to the current 0.9% yield.
The second company, called Keysight Technologies, will make testing systems for improving electronics, such as cellphones and computer equipment. Keysight will not pay a dividend, at least initially.
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BAXTER INTERNATIONAL INC. $76 (New York symbol BAX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 542.6 million; Market cap: $41.2 billion; Price-to-sales ratio: 2.7; Dividend yield: 2.7%; TSINetwork Rating: Average; www.baxter.com) recently announced that it will split into two separate companies.
One firm will focus on medical devices, such as intravenous pumps and kidney dialysis equipment. This business currently provides 60% of Baxter’s revenue. The other company will make biopharmaceuticals, including vaccines and hemophilia drugs.
In mid-2015, Baxter will hand out shares in the biopharmaceutical firm to its investors as a tax-deferred dividend.
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One firm will focus on medical devices, such as intravenous pumps and kidney dialysis equipment. This business currently provides 60% of Baxter’s revenue. The other company will make biopharmaceuticals, including vaccines and hemophilia drugs.
In mid-2015, Baxter will hand out shares in the biopharmaceutical firm to its investors as a tax-deferred dividend.
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HILLSHIRE BRANDS CO. $63 (New York symbol HSH; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 123.4 million; Market cap: $7.8 billion; Price-to-sales ratio: 2.0; Dividend yield: 1.1%; TSINetwork Rating: Average; www.hillshirebrands.com) took its current form on June 28, 2012, when the old Sara Lee Corp. split into two separate companies: Hillshire and European coffee maker D.E. Master Blenders.
D.E. Master accepted a $16.50-a-share takeover offer in June 2013, for a 55% gain since the Sara Lee breakup.
Hillshire makes a variety of packaged meat products. Its main brands include Ball Park hot dogs, Jimmy Dean sausages and Hillshire Farm deli meats. Other foods include Sara Lee frozen desserts and Chef Pierre pies.
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D.E. Master accepted a $16.50-a-share takeover offer in June 2013, for a 55% gain since the Sara Lee breakup.
Hillshire makes a variety of packaged meat products. Its main brands include Ball Park hot dogs, Jimmy Dean sausages and Hillshire Farm deli meats. Other foods include Sara Lee frozen desserts and Chef Pierre pies.
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KRAFT FOODS GROUP INC. $57 (Nasdaq symbol KRFT; Conservative Growth and Income Portfolios, Consumer sector; Shares outstanding: 595.3 million; Market cap: $33.9 billion; Price-to-sales ratio: 1.9; Dividend yield: 3.7%; TSINetwork Rating: Above Average; www.kraftfoodsgroup.com) makes a variety of grocery products, including Kraft macaroni and cheese, Maxwell House coffee, Oscar Mayer meats, Philadelphia cream cheese, Jell-O desserts and Miracle Whip salad dressing.
Following the split from Mondelez, Kraft began consolidating plants and eliminating less-profitable products. The company expects to spend $625 million by the time it completes the plan in late 2014.
In the three months ended June 28, 2014, Kraft’s earnings fell 41.9%, to $482 million, or $0.80 a share. A year earlier, it earned $829 million, or $1.38 a share. If you disregard unusual items, earnings per share increased 7.9%, to $0.82 from $0.76.
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Following the split from Mondelez, Kraft began consolidating plants and eliminating less-profitable products. The company expects to spend $625 million by the time it completes the plan in late 2014.
In the three months ended June 28, 2014, Kraft’s earnings fell 41.9%, to $482 million, or $0.80 a share. A year earlier, it earned $829 million, or $1.38 a share. If you disregard unusual items, earnings per share increased 7.9%, to $0.82 from $0.76.
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MONDELEZ INTERNATIONAL INC. $37 (Nasdaq symbol MDLZ; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.7 billion; Market cap: $62.9 billion; Price-to-sales ratio: 1.9; Dividend yield: 1.5%; TSINetwork Rating: Above Average; www.mondelezinternational.com) took its current form on October 1, 2012, when the old Kraft Foods Inc. broke itself into two publicly traded companies: Mondelez International and Kraft Foods Group.
Mondelez makes cookies and biscuits (Oreo, Chips Ahoy, Ritz), chocolate bars (Cadbury, Toblerone) and gum and candy (Trident, Chiclets and Halls cough drops). It also makes coffee and other beverages, as well as grocery and cheese products for overseas markets.
The company has agreed to merge its packaged coffee business with European coffee maker D.E. Master Blenders. Under this deal, Mondelez will contribute its coffee brands, including Jacobs, Gevalia and Tassimo, to a new firm called Jacobs Douwe Egberts. In return, it will get $5 billion in cash and 49% of the new company when the deal closes later this year.
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Mondelez makes cookies and biscuits (Oreo, Chips Ahoy, Ritz), chocolate bars (Cadbury, Toblerone) and gum and candy (Trident, Chiclets and Halls cough drops). It also makes coffee and other beverages, as well as grocery and cheese products for overseas markets.
The company has agreed to merge its packaged coffee business with European coffee maker D.E. Master Blenders. Under this deal, Mondelez will contribute its coffee brands, including Jacobs, Gevalia and Tassimo, to a new firm called Jacobs Douwe Egberts. In return, it will get $5 billion in cash and 49% of the new company when the deal closes later this year.
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WINDSTREAM HOLDINGS INC. $11 (Nasdaq symbol WIN; Income Portfolio, Utilities sector; Shares outstanding: 602.7 million; Market cap: $6.6 billion; Price-to-sales ratio: 1.2; Dividend yield: 9.1%; TSINetwork Rating: Average; www.windstream.com) gets 73% of its revenue from high-speed Internet and business telecommunications. It also sells regular phone services, mainly in rural parts of the U.S.
The stock jumped 20% after the company announced that it would transfer its fibre-optic and copper networks, along with some land and buildings, to a new real estate investment trust (REIT). The company will then lease these assets from the REIT.
Windstream plans to hand out units in the new REIT to its own shareholders in the first quarter of 2015.
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The stock jumped 20% after the company announced that it would transfer its fibre-optic and copper networks, along with some land and buildings, to a new real estate investment trust (REIT). The company will then lease these assets from the REIT.
Windstream plans to hand out units in the new REIT to its own shareholders in the first quarter of 2015.
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