price to sales ratio
MCGRAW-HILL COMPANIES INC. $55 (New York symbol MHP; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 280.2 million; Market cap: $15.4 billion; Price-to-sales ratio: 2.4; Dividend yield: 1.9%; TSINetwork Rating: Average; www.mcgraw-hill.com) will soon split into two separate, publicly traded companies. One of these new firms, McGraw-Hill Financial, will sell financial-information products. This business will include Standard & Poor’s, which provides credit ratings on bonds, and McGraw-Hill’s J.D. Power market- research firm. Right now, this division supplies 60% of McGraw-Hill’s total revenue. The other company, McGraw-Hill Education Inc., will publish textbooks for schools and colleges. It sells its products in 28 countries and 65 languages....
MONSANTO CO. $86 (New York symbol MON, Aggressive Growth Portfolio; Manufacturing & Industry sector; Shares outstanding: 534.6 million; Market cap: $46.0 billion; Price-to-sales ratio: 3.4; Dividend yield: 1.7%; TSINetwork Rating: Above Average; www.monsanto.com) is a multinational firm that sells technology-based agricultural products, such as genetically modified seeds, to farmers, grain processors and food companies. Overseas markets account for about 45% of its revenue.
Monsanto has two business segments. Its Seeds and Genomics division, which supplies 73% of its total revenue, makes genetically modified seeds for corn, soybeans and other crops.
The company gets the remaining 27% of its sales from its Agricul- tural Productivity division, which makes herbicides for farmers under the Roundup brand. Roundup accounts for about 10% of Monsanto’s overall sales. The company also makes lawn and garden herbicides for consumers.
...
Monsanto has two business segments. Its Seeds and Genomics division, which supplies 73% of its total revenue, makes genetically modified seeds for corn, soybeans and other crops.
The company gets the remaining 27% of its sales from its Agricul- tural Productivity division, which makes herbicides for farmers under the Roundup brand. Roundup accounts for about 10% of Monsanto’s overall sales. The company also makes lawn and garden herbicides for consumers.
...
MCGRAW-HILL COMPANIES INC. $55 (New York symbol MHP; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 280.2 million; Market cap: $15.4 billion; Price-to-sales ratio: 2.4; Dividend yield: 1.9%; TSINetwork Rating: Average; www.mcgraw-hill.com) will soon split into two separate, publicly traded companies.
One of these new firms, McGraw-Hill Financial, will sell financial-information products. This business will include Standard & Poor’s, which provides credit ratings on bonds, and McGraw-Hill’s J.D. Power market- research firm. Right now, this division supplies 60% of McGraw-Hill’s total revenue.
The other company, McGraw-Hill Education Inc., will publish textbooks for schools and colleges. It sells its products in 28 countries and 65 languages.
...
One of these new firms, McGraw-Hill Financial, will sell financial-information products. This business will include Standard & Poor’s, which provides credit ratings on bonds, and McGraw-Hill’s J.D. Power market- research firm. Right now, this division supplies 60% of McGraw-Hill’s total revenue.
The other company, McGraw-Hill Education Inc., will publish textbooks for schools and colleges. It sells its products in 28 countries and 65 languages.
...
SNAP-ON INC. $76 (New York symbol SNA; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 58.2 million; Market cap: $4.4 billion; Price-to-sales ratio: 1.5; Dividend yield: 1.8%; TSINetwork Rating: Average; www.snapon.com) makes tools for auto mechanics. The company sells its products through a fleet of franchised vans that visit garages. It also makes specialized tools for mining companies, electrical power generators and other industrial customers.
Snap-On’s earnings rose 8.6% in the three months ended September 30, 2012, to $1.26 from $1.16 a year earlier. That’s mainly due to improved results from its financing division, which provides loans to help mechanics buy Snap-On tools. Revenue rose 3.0%, to $752.1 million from $729.9 million.
Snap-On is a buy.
...
Snap-On’s earnings rose 8.6% in the three months ended September 30, 2012, to $1.26 from $1.16 a year earlier. That’s mainly due to improved results from its financing division, which provides loans to help mechanics buy Snap-On tools. Revenue rose 3.0%, to $752.1 million from $729.9 million.
Snap-On is a buy.
...
DIAGEO PLC ADRs $113 (New York symbol DEO; Conservative Growth Portfolio, Consumer sector; ADRs outstanding: 627.1 million; Market cap: $70.9 billion; Price-to-sales ratio: 4.1; Dividend yield: 2.5%; TSINetwork Rating: Above Average; www.diageo.com) continues see strong demand for its top brands, such as Smirnoff vodka, Johnnie Walker scotch whisky and Captain Morgan rum, in fast-growing markets like Latin America and Africa. The company aims to get half of its sales from emerging markets by 2015, up from the current 40%.
In its fiscal 2013 first quarter, which ended September 30, 2012, Diageo’s sales rose 6% from a year earlier. If you exclude contributions from acquisitions, sales would have risen 5%.
Sales increased 6% in North America, 11% in Africa, 16% in Latin America and 2% in Asia. However, European sales fell 1%.
...
In its fiscal 2013 first quarter, which ended September 30, 2012, Diageo’s sales rose 6% from a year earlier. If you exclude contributions from acquisitions, sales would have risen 5%.
Sales increased 6% in North America, 11% in Africa, 16% in Latin America and 2% in Asia. However, European sales fell 1%.
...
FEDEX CORP. $91 (New York symbol FDX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 314.1 million; Market cap: $28.6 billion; Price-to-sales ratio: 0.7; Dividend yield: 0.6%; TSI Network Rating: Average; www.fedex.com) is seeing lower demand for its overnight international air delivery services. That’s because the uncertain economy is prompting shippers to use lower but cheaper forms of transportation, such as trucks and ships. In response, FedEx plans to lower its costs by replacing older planes and trucks with more fuel-efficient models. It is also cutting jobs and consolidating facilities.
The company expects these moves to increase its earnings by $1.7 billion by May 31, 2015, which is the end of its 2015 fiscal year. In its latest fiscal year, FedEx earned $2.1 billion, or $6.59 a share.
FedEx is a buy.
...
The company expects these moves to increase its earnings by $1.7 billion by May 31, 2015, which is the end of its 2015 fiscal year. In its latest fiscal year, FedEx earned $2.1 billion, or $6.59 a share.
FedEx is a buy.
...
XEROX CORP. $6.48 (New York symbol XRX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.3 billion; Market cap: $8.4 billion; Price-to-sales ratio: 0.4; Dividend yield: 2.6%; TSINetwork Rating: Average; www.xerox.com) now gets half of its sales from managing certain tasks, such as billing and accounting, for its clients. It sells these services under long-term ontracts. That gives it more predictable revenue streams than selling copiers and other hardware.
Still, demand for the company’s products and services is cyclical, and the stock will likely stay in a narrow range until global economic growth improves. Xerox’s $7.5-billion long-term debt is also a high 89% of its market cap. That means the company will likely put more of its future cash flow into debt repayments and less toward buying back shares or raising its dividend.
Xerox is a sell.
...
Still, demand for the company’s products and services is cyclical, and the stock will likely stay in a narrow range until global economic growth improves. Xerox’s $7.5-billion long-term debt is also a high 89% of its market cap. That means the company will likely put more of its future cash flow into debt repayments and less toward buying back shares or raising its dividend.
Xerox is a sell.
...
WEYERHAEUSER CO. $28 (New York symbol WY; Conservative Growth Portfolio, Resources sector; Shares outstanding: 537.8 million; Market cap: $15.1 billion; Price-to-sales ratio: 2.3; Dividend yield: 2.4%; TSINetwork Rating: Extra Risk; www.weyerhaeuser.com) is a leading maker of forest products, including paper and packaging.
The stock is up 48% since the start of 2012. That’s mainly because of signs that the U.S. housing market is starting to recover, which should spur lumber demand. However, paper prices remain depressed.
As well, Weyerhaeuser trades at a high 50.9 times its projected 2012 earnings of $0.55 a share. That makes it vulnerable to sudden drop if growth slows.
...
The stock is up 48% since the start of 2012. That’s mainly because of signs that the U.S. housing market is starting to recover, which should spur lumber demand. However, paper prices remain depressed.
As well, Weyerhaeuser trades at a high 50.9 times its projected 2012 earnings of $0.55 a share. That makes it vulnerable to sudden drop if growth slows.
...
STATE STREET CORP. $44 (New York symbol STT; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 479.1 million; Market cap: $21.1 billion; Price-to-sales ratio: 2.2; Dividend yield: 2.2%; TSINetwork Rating: Extra Risk; www.statestreet.com) has completed its $550-million purchase of the hedge fund management business of Goldman Sachs Group Inc. (New York symbol GS). These operations should immediately add to its earnings.
Meanwhile, the company earned $473 million in the three months ended September 30, 2012. That’s down 0.6% from $476 million a year earlier. Earnings per share rose 3.1%, to $0.99 from $0.96, on fewer shares outstanding. Revenue fell 2.7%, to $2.35 billion from $2.41 billion, as lower volumes hurt its trading division.
State Street is a buy.
...
Meanwhile, the company earned $473 million in the three months ended September 30, 2012. That’s down 0.6% from $476 million a year earlier. Earnings per share rose 3.1%, to $0.99 from $0.96, on fewer shares outstanding. Revenue fell 2.7%, to $2.35 billion from $2.41 billion, as lower volumes hurt its trading division.
State Street is a buy.
...
WELLS FARGO & CO. $34 (New York symbol WFC; Conservative Growth Portfolio, Finance sector; Shares outstanding: 5.3 billion; Market cap: $180.2 billion; Price-to-sales ratio: 2.1; Dividend yield: 2.6%; TSINetwork Rating: Average; www.wellsfargo.com) earned $4.9 billion, or $0.88 a share, in the three months ended September 30, 2012. That’s up 21.7% from $4.1 billion, or $0.72 a share, a year earlier.
The bank continues to do a good job of adjusting the terms of troubled loans it acquired when it bought rival banking firm Wachovia in 2008. In the latest quarter, it set aside $1.6 billion to cover bad loans, down 12.1% from $1.8 billion a year ago.
Revenue rose 8.0%, to $21.2 billion from $19.6 billion. Low interest rates continue to encourage businesses and consumers to take out loans. The wealth management division is also attracting more clients.
...
The bank continues to do a good job of adjusting the terms of troubled loans it acquired when it bought rival banking firm Wachovia in 2008. In the latest quarter, it set aside $1.6 billion to cover bad loans, down 12.1% from $1.8 billion a year ago.
Revenue rose 8.0%, to $21.2 billion from $19.6 billion. Low interest rates continue to encourage businesses and consumers to take out loans. The wealth management division is also attracting more clients.
...