price to sales ratio
These two leading mining companies reported lower earnings for 2012. But they’re both working on important projects that should boost their earnings in 2013 and beyond.
NEWMONT MINING CORP. $40 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 496.7 million; Market cap: $19.9 billion; Price-to-sales ratio: 2.0; Dividend yield: 4.3%; TSINetwork Rating: Average; www.newmont.com) gets 90% of its revenue from gold mines in the U.S., Australia and Peru....
NEWMONT MINING CORP. $40 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 496.7 million; Market cap: $19.9 billion; Price-to-sales ratio: 2.0; Dividend yield: 4.3%; TSINetwork Rating: Average; www.newmont.com) gets 90% of its revenue from gold mines in the U.S., Australia and Peru....
AMERICAN EXPRESS CO. $66 (New York symbol AXP, Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.1 billion; Market cap: $72.6 billion; Price-to-sales ratio: 2.1; Dividend yield: 1.4%; TSINetwork Rating: Average; www.- americanexpress.com) has passed the Federal Reserve’s latest “stress test,” which measures how well banks and other financial firms would cope with a sharp jump in unemployment, falling stock prices and other unfavourable economic conditions.
As a result, the company raised its quarterly dividend by 15.0%, to $0.23 a share from $0.20....
As a result, the company raised its quarterly dividend by 15.0%, to $0.23 a share from $0.20....
MCCORMICK & CO. INC. $72 (New York symbol MKC; Income Portfolio, Consumer sector; Shares outstanding: 132.7 million; Market cap: $9.6 billion; Price-to-sales ratio: 2.1; Dividend yield: 1.9%; TSINetwork Rating: Average; www.mccormick.com) earned $407.8 million, or $3.04 a share, in its 2012 fiscal year, which ended November 30, 2012....
DUN & BRADSTREET CORP. $82 (New York symbol DNB; Conservative Growth Portfolio, Finance sector; Shares outstanding: 40.9 million; Market cap: $3.4 billion; Price-to-sales ratio: 2.0; Dividend yield: 2.0%; TSINetwork Rating: Average; www.dnb.com) began operating in 1841 and is now the world’s largest provider of credit reports on individual companies....
DUN & BRADSTREET CORP. $82 (New York symbol DNB; Conservative Growth Portfolio, Finance sector; Shares outstanding: 40.9 million; Market cap: $3.4 billion; Price-to-sales ratio: 2.0; Dividend yield: 2.0%; TSINetwork Rating: Average; www.dnb.com) began operating in 1841 and is now the world’s largest provider of credit reports on individual companies. Its database contains information on 220 million businesses in over 200 countries. Companies use these reports to make lending and purchasing decisions and to cut their credit losses.
The company gets 63% of its revenue from credit reports. The remaining 37% comes from other information products, including software to help businesses manage customer data and websites.
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The company gets 63% of its revenue from credit reports. The remaining 37% comes from other information products, including software to help businesses manage customer data and websites.
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MCCORMICK & CO. INC. $72 (New York symbol MKC; Income Portfolio, Consumer sector; Shares outstanding: 132.7 million; Market cap: $9.6 billion; Price-to-sales ratio: 2.1; Dividend yield: 1.9%; TSINetwork Rating: Average; www.mccormick.com) earned $407.8 million, or $3.04 a share, in its 2012 fiscal year, which ended November 30, 2012. That’s up 9.0% from $374.2 million, or $2.79 a share, in 2011. Sales rose 8.6%, to $4.0 billion from $3.7 billion.
The company is benefiting from its recent purchases of spice makers and food companies in India and Eastern Europe. As well, its ongoing cost-cutting plan saved it $56 million in 2012.
Earnings should rise to between $3.15 and $3.23 a share in 2013. The stock trades at a high but still reasonable 22.6 times the midpoint of that range.
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The company is benefiting from its recent purchases of spice makers and food companies in India and Eastern Europe. As well, its ongoing cost-cutting plan saved it $56 million in 2012.
Earnings should rise to between $3.15 and $3.23 a share in 2013. The stock trades at a high but still reasonable 22.6 times the midpoint of that range.
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GENUINE PARTS CO. $77 (New York symbol GPC; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 154.9 million; Market cap: $11.9 billion; Price-to-sales ratio: 0.9; Dividend yield: 2.8%; TSINetwork Rating: Average; www.genpt.com) has exercised its option to buy full control of privately held Exego Group, which sells auto parts through 290 stores in Australia and 92 in New Zealand.
Genuine Parts paid $150 million for 30% of Exego in January 2012. It will pay $800 million for the remaining 70% when the deal closes in April 2013.
This is a big purchase for Genuine Parts, which earned $648.0 million, or $4.14 a share, in 2012. However, Exego is profitable, and this purchase will cut the company’s reliance on North America, which accounts for nearly all of its sales.
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Genuine Parts paid $150 million for 30% of Exego in January 2012. It will pay $800 million for the remaining 70% when the deal closes in April 2013.
This is a big purchase for Genuine Parts, which earned $648.0 million, or $4.14 a share, in 2012. However, Exego is profitable, and this purchase will cut the company’s reliance on North America, which accounts for nearly all of its sales.
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TEXAS INSTRUMENTS INC. $35 (Nasdaq symbol TXN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.1 billion; Market cap: $38.5 billion; Price-to-sales ratio: 3.0; Dividend yield: 3.2%; TSINetwork Rating: Average; www.ti.com) is receiving more orders for its analog chips, which convert sounds and temperatures into digital signals that computers can understand. Manufacturers use analog chips in a wide variety of products, including cars, medical devices and home appliances.
Texas Instruments now expects revenue of $2.80 billion to $2.91 billion in the first quarter of 2013. That’s up from its earlier forecast of $2.69 billion to $2.91 billion. It also expects to earn $0.28 to $0.32 a share in the quarter, up from its prior forecast of $0.24 to $0.32.
As well, Texas Instruments has raised its quarterly dividend by 33.3%, to $0.28 a share from $0.21. The new annual rate of $1.12 yields 3.2%. The company also added $5 billion to its share repurchase authorization. It can now buy back up to $8.4 billion of its shares, or 22% of its market cap. There is no time limit for these purchases.
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Texas Instruments now expects revenue of $2.80 billion to $2.91 billion in the first quarter of 2013. That’s up from its earlier forecast of $2.69 billion to $2.91 billion. It also expects to earn $0.28 to $0.32 a share in the quarter, up from its prior forecast of $0.24 to $0.32.
As well, Texas Instruments has raised its quarterly dividend by 33.3%, to $0.28 a share from $0.21. The new annual rate of $1.12 yields 3.2%. The company also added $5 billion to its share repurchase authorization. It can now buy back up to $8.4 billion of its shares, or 22% of its market cap. There is no time limit for these purchases.
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AMERICAN EXPRESS CO. $66 (New York symbol AXP, Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.1 billion; Market cap: $72.6 billion; Price-to-sales ratio: 2.1; Dividend yield: 1.4%; TSINetwork Rating: Average; www.- americanexpress.com) has passed the Federal Reserve’s latest “stress test,” which measures how well banks and other financial firms would cope with a sharp jump in unemployment, falling stock prices and other unfavourable economic conditions.
As a result, the company raised its quarterly dividend by 15.0%, to $0.23 a share from $0.20. The new annual rate of $0.92 yields 1.4%. Amex also announced that it would buy back $4.0 billion worth of its shares in 2013, and $1 billion more in the first quarter of 2014.
American Express is a buy.
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As a result, the company raised its quarterly dividend by 15.0%, to $0.23 a share from $0.20. The new annual rate of $0.92 yields 1.4%. Amex also announced that it would buy back $4.0 billion worth of its shares in 2013, and $1 billion more in the first quarter of 2014.
American Express is a buy.
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NEWMONT MINING CORP. $40 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 496.7 million; Market cap: $19.9 billion; Price-to-sales ratio: 2.0; Dividend yield: 4.3%; TSINetwork Rating: Average; www.newmont.com) gets 90% of its revenue from gold mines in the U.S., Australia and Peru. Copper, zinc and other metals supply the remaining 10%.
In 2012, Newmont sold its gold for an average of $1,662 an ounce, up 6.4% from $1,562 in 2011. But production fell 4.9%, to 5.6 million ounces from 5.9 million. That’s because it had to cut production at its 31.5%-owned Batu Hijau gold/copper project in Indonesia as the mine prepares to open a new phase in 2014.
As a result of the lower production, Newmont’s revenue fell 4.7% to $9.9 billion from $10.4 billion. Rising operating costs and higher royalty payments have also pushed up Newmont’s cost per ounce by 14.6%, to $677 from $591. That cut its 2012 earnings by 14.7%, to $1.85 billion, or $3.73 a share. In 2011, it earned $2.2 billion, or $4.39 a share.
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In 2012, Newmont sold its gold for an average of $1,662 an ounce, up 6.4% from $1,562 in 2011. But production fell 4.9%, to 5.6 million ounces from 5.9 million. That’s because it had to cut production at its 31.5%-owned Batu Hijau gold/copper project in Indonesia as the mine prepares to open a new phase in 2014.
As a result of the lower production, Newmont’s revenue fell 4.7% to $9.9 billion from $10.4 billion. Rising operating costs and higher royalty payments have also pushed up Newmont’s cost per ounce by 14.6%, to $677 from $591. That cut its 2012 earnings by 14.7%, to $1.85 billion, or $3.73 a share. In 2011, it earned $2.2 billion, or $4.39 a share.
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