price to sales ratio
ATCO LTD. (Toronto symbols ACO.X [class I non-voting] $92 and ACO.Y [class II voting] $92; Income Portfolio, Utilities sector; Shares outstanding: 57.5 million; Market cap: $5.3 billion; Price-to-sales ratio: 1.2; Dividend yield: 1.6%; TSINetwork Rating: Above Average; www.atco.com) is a holding company. Its main subsidiary is 52.9%-owned Canadian Utilities (see left). It also owns 75.5% of ATCO Structures & Logistics, which builds temporary buildings for construction companies and energy exploration firms; Canadian Utilities owns the remaining 24.5%.
In 2012, ATCO’s revenue rose 11.9% to $4.4 billion from $4.0 billion a year earlier. In addition to a higher contribution from Canadian Utilities, revenue at its structures division rose 24.8% due to new mines, such as the Jansen potash project in Saskatchewan. Earnings rose 14.7%, to $375 million, or $6.48 a share, from $327 million, or $5.64.
ATCO continues to trade for less than the value of its assets; investors call this a “holding company discount.” Based on current prices, you can buy a share of ATCO for $92 and get roughly $93 worth of Canadian Utilities. That means you get ATCO’s non-utility businesses, which provide a third of its earnings, for free.
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In 2012, ATCO’s revenue rose 11.9% to $4.4 billion from $4.0 billion a year earlier. In addition to a higher contribution from Canadian Utilities, revenue at its structures division rose 24.8% due to new mines, such as the Jansen potash project in Saskatchewan. Earnings rose 14.7%, to $375 million, or $6.48 a share, from $327 million, or $5.64.
ATCO continues to trade for less than the value of its assets; investors call this a “holding company discount.” Based on current prices, you can buy a share of ATCO for $92 and get roughly $93 worth of Canadian Utilities. That means you get ATCO’s non-utility businesses, which provide a third of its earnings, for free.
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CANADIAN UTILITIES LTD. (Toronto symbols CU [class A non-voting] $79 and CU.X [class B voting] $79; Income Portfolio, Utilities sector; Shares outstanding: 128.6 million; Market cap: $10.1 billion; Price-to-sales ratio: 3.2; Dividend yield: 2.5%; TSINetwork Rating: Above A v e r a g e ; www.canadianutilities.com) distributes electricity and natural gas in Alberta. It also operates 18 power plants in Canada, Australia and the U.K. ATCO Ltd. (see right) owns 52.9% of the company.
In July 2011, Canadian Utilities bought an Australian natural gas distributor for $1.1 billion. This move, along with an expansion of its power transmission grid in Alberta, continues to benefit the company. These new assets have also helped offset lower revenue from its Alberta power plants due to planned maintenance shutdowns.
As a result, the company’s earnings rose 13.1% in 2012, to a record $561 million, or $4.11 a share. The new Australian business contributed $26 million to that total. In 2011, Canadian Utilities earned $496 million, or $3.65 a share. Revenue rose 4.7%, to $3.1 billion from $3.0 billion.
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In July 2011, Canadian Utilities bought an Australian natural gas distributor for $1.1 billion. This move, along with an expansion of its power transmission grid in Alberta, continues to benefit the company. These new assets have also helped offset lower revenue from its Alberta power plants due to planned maintenance shutdowns.
As a result, the company’s earnings rose 13.1% in 2012, to a record $561 million, or $4.11 a share. The new Australian business contributed $26 million to that total. In 2011, Canadian Utilities earned $496 million, or $3.65 a share. Revenue rose 4.7%, to $3.1 billion from $3.0 billion.
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TORSTAR CORP. $7.00 (Toronto symbol TS.B; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 79.7 million; Market cap: $557.9 million; Price-to-sales ratio: 0.4; Dividend yield: 7.5%; TSINetwork Rating: Above Average; www- .torstar.com) continues to struggle with falling newspaper ad sales, particularly at The Toronto Star, its flagship paper. Strong competition and unfavourable foreign exchange rates are also hurting profits at wholly owned Harlequin Enterprises, the world’s leading romance novel publisher.
In 2012, Torstar’s revenue fell 4.1%, to $1.49 billion from $1.55 billion in 2011. Earnings fell 52.6%, to $103.2 million, or $1.29 a share, from $217.7 million, or $2.72 a share. If you disregard writedowns and other unusual items, earnings per share would have declined 25.0%, to $1.35 from $1.80.
To improve its profitability, Torstar continues to cut jobs and sell surplus real estate. Since 2010, these moves have cut its annual costs by $34.4 million. In 2013, annual savings should rise to $50.0 million.
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In 2012, Torstar’s revenue fell 4.1%, to $1.49 billion from $1.55 billion in 2011. Earnings fell 52.6%, to $103.2 million, or $1.29 a share, from $217.7 million, or $2.72 a share. If you disregard writedowns and other unusual items, earnings per share would have declined 25.0%, to $1.35 from $1.80.
To improve its profitability, Torstar continues to cut jobs and sell surplus real estate. Since 2010, these moves have cut its annual costs by $34.4 million. In 2013, annual savings should rise to $50.0 million.
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ENBRIDGE INC. $46 (Toronto symbol ENB; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 806.5 million; Market cap: $37.1 billion; Price-to-sales ratio: 1.4; Dividend yield: 2.7%; TSINetwork Rating: Above Average; www.enbridge.com) operates pipelines that pump crude oil and natural gas from western Canada to customers in eastern Canada and the U.S. The company’s pipelines handle around 65% of all western Canadian crude oil exports.
Pipelines supply 90% of Enbridge’s revenue. The remaining 10% mainly comes from distributing gas to 2 million consumers in Ontario, Quebec, New Brunswick and New York State.
Enbridge’s revenue fell 22.7%, from $16.1 billion in 2008 to $12.5 billion in 2009, as the recession cut gas sales and prices. In 2010, the company started up the $3.5-billion Alberta Clipper pipeline, which pumps oil from Alberta to refineries in Illinois. That helped push up Enbridge’s revenue by 103.0% in 2012, to $25.3 billion.
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Pipelines supply 90% of Enbridge’s revenue. The remaining 10% mainly comes from distributing gas to 2 million consumers in Ontario, Quebec, New Brunswick and New York State.
Enbridge’s revenue fell 22.7%, from $16.1 billion in 2008 to $12.5 billion in 2009, as the recession cut gas sales and prices. In 2010, the company started up the $3.5-billion Alberta Clipper pipeline, which pumps oil from Alberta to refineries in Illinois. That helped push up Enbridge’s revenue by 103.0% in 2012, to $25.3 billion.
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Newell and Tupperware, which make plastic food containers and other household products, have both moved up sharply in the past year. That’s mainly because they’re doing a great job of cutting costs, which is raising their profits and giving them more cash for dividends....
THE BOEING CO. $85 (New York symbol BA; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 756.2 million; Market cap: $64.3 billion; Price-to-sales ratio: 0.8; Dividend yield: 2.3%; TSINetwork Rating: Above Average; www.boeing.com) had to ground all of its new 787 Dreamliner passenger planes in January 2013 after a battery problem forced one to make an emergency landing in Japan.
The 787 uses advanced rechargeable lithium-ion batteries to power its electrical systems....
The 787 uses advanced rechargeable lithium-ion batteries to power its electrical systems....
An American Depositary Receipt (ADR) is an investment unit for foreign companies that trade on U.S. stock markets. One ADR typically represents one or more shares of the overseas firm.
ADRs make its easier to invest in foreign companies, such as the three we analyze below, without the complications of buying or selling on foreign exchanges or in foreign currencies....
ADRs make its easier to invest in foreign companies, such as the three we analyze below, without the complications of buying or selling on foreign exchanges or in foreign currencies....
APPLE INC. $451 (Nasdaq symbol AAPL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 939.1 million; Market cap: $423.5 billion; Price-to-sales ratio: 2.6; Dividend yield: 2.4%; TSINetwork Rating: Average; www.apple.com) is down 36% from its all-time high of $705.07 in September 2012.
Thanks to the huge success of the iPhone and iPad, as well as the star power of the late Steve Jobs, Apple’s co-founder and CEO, the company became a media and broker favourite....
Thanks to the huge success of the iPhone and iPad, as well as the star power of the late Steve Jobs, Apple’s co-founder and CEO, the company became a media and broker favourite....
These two companies own some of the top brands in the fashion industry. However, recent payroll tax hikes have lowered most Americans’ take-home pay. That could hurt clothing sales.
LIMITED BRANDS INC. $44 (New York symbol LTD; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 288.4 million; Market cap: $12.7 billion; Price-to-sales ratio: 1.2; Dividend yield: 2.7%; TSINetwork Rating: Average; www.- limitedbrands.com) owns the Victoria’s Secret lingerie chain and the Bath & Body Works personalcare products stores.
Limited is restructuring the La Senza lingerie chain in Canada, including closing a third of its stores (it now has 158 outlets) and shifting its focus to younger shoppers.
In its 2013 fiscal year, which ended February 2, 2013, Limited’s sales rose just 0.9%, to $10.5 billion from $10.4 billion in 2012....
LIMITED BRANDS INC. $44 (New York symbol LTD; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 288.4 million; Market cap: $12.7 billion; Price-to-sales ratio: 1.2; Dividend yield: 2.7%; TSINetwork Rating: Average; www.- limitedbrands.com) owns the Victoria’s Secret lingerie chain and the Bath & Body Works personalcare products stores.
Limited is restructuring the La Senza lingerie chain in Canada, including closing a third of its stores (it now has 158 outlets) and shifting its focus to younger shoppers.
In its 2013 fiscal year, which ended February 2, 2013, Limited’s sales rose just 0.9%, to $10.5 billion from $10.4 billion in 2012....
NORDSTROM INC. $53 (New York symbol JWN; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 195.9 million; Market cap: $10.4 billion; Price-to-sales ratio: 0.9; Dividend yield: 2.3%; TSINetwork Rating: Average; www.nordstrom.com) plans to invest $240 million to expand its online operations, which supply about 10% of its sales....