price to sales ratio
DIEBOLD INC. $33 (New York symbol DBD; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 63.2 million; Market cap: $2.1 billion; Price-to-sales ratio: 0.7; Dividend yield: 3.4%; TSINetwork Rating: Average; www.diebold.com) makes ATMs, safes, vaults and building security systems.
In the three months ended June 30, 2012, the company’s earnings rose 30.7%, to $26.5 million from $20.3 million a year earlier. Earnings per share rose 32.3%, to $0.41 from $0.31, on fewer shares outstanding. If you exclude unusual items, such as a writedown of obsolete computer software, Diebold’s earnings per share would have risen 11.4%, to $0.49 from $0.44.
Revenue rose 12.2%, to $743.2 million from $662.4 million. That’s mainly because the company continues to see strong demand for ATMs from banks in North and South America. That’s helping it offset weaker sales in Europe. Sales in Asia were flat.
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In the three months ended June 30, 2012, the company’s earnings rose 30.7%, to $26.5 million from $20.3 million a year earlier. Earnings per share rose 32.3%, to $0.41 from $0.31, on fewer shares outstanding. If you exclude unusual items, such as a writedown of obsolete computer software, Diebold’s earnings per share would have risen 11.4%, to $0.49 from $0.44.
Revenue rose 12.2%, to $743.2 million from $662.4 million. That’s mainly because the company continues to see strong demand for ATMs from banks in North and South America. That’s helping it offset weaker sales in Europe. Sales in Asia were flat.
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NCR CORP. $23 (New York symbol NCR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 159.1 million; Market cap: $3.7 billion; Price-to-sales ratio: 0.6; No dividends paid; TSINetwork Rating: Average; www.ncr.com) is a leading maker of ATMs, checkout scanners, cash registers and self-serve kiosks.
NCR is benefiting from its $1.2-billion purchase of Radiant Systems Inc. in August 2011. Radiant makes point-of-sale terminals and self-serve kiosks for hotels, restaurants and gas stations. NCR also sold its struggling DVD-rental kiosk business for $100 million. These moves pushed up NCR’s revenue by 10.8% in the second quarter of 2012, to $1.4 billion from $1.3 billion a year earlier. Earnings jumped 48.9%, to $67 million, or $0.41 a share, from $45 million, or $0.28.
The stock is up nearly 40% since the start of 2012. Even so, it trades at just 9.4 times the $2.46 a share that NCR will probably earn in 2012.
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NCR is benefiting from its $1.2-billion purchase of Radiant Systems Inc. in August 2011. Radiant makes point-of-sale terminals and self-serve kiosks for hotels, restaurants and gas stations. NCR also sold its struggling DVD-rental kiosk business for $100 million. These moves pushed up NCR’s revenue by 10.8% in the second quarter of 2012, to $1.4 billion from $1.3 billion a year earlier. Earnings jumped 48.9%, to $67 million, or $0.41 a share, from $45 million, or $0.28.
The stock is up nearly 40% since the start of 2012. Even so, it trades at just 9.4 times the $2.46 a share that NCR will probably earn in 2012.
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CEDAR FAIR L.P. $33 (New York symbol FUN; Income Portfolio, Consumer sector; Units outstanding: 55.5 million; Market cap: $1.8 billion; Price-to-sales ratio: 1.7; Dividend yield: 4.8%; TSINetwork Rating: Average; www.cedarfair.com) reported revenue of $881 million from the beginning of the year through the Labour Day holiday weekend. That’s up 4.8%, from the same period in 2011.
New rides and attractions are helping Cedar Fair draw more visitors to its 11 amusement parks and seven water parks. Overall attendance rose 1%, while average spending per guest gained 4%. The partnership still plans to raise its annual distribution rate from $1.60 a unit (4.8% yield) in 2012 to $2.00 (6.1% yield) in 2013.
Cedar Fair is a buy.
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New rides and attractions are helping Cedar Fair draw more visitors to its 11 amusement parks and seven water parks. Overall attendance rose 1%, while average spending per guest gained 4%. The partnership still plans to raise its annual distribution rate from $1.60 a unit (4.8% yield) in 2012 to $2.00 (6.1% yield) in 2013.
Cedar Fair is a buy.
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DUN & BRADSTREET CORP. $80 (New York symbol DNB; Conservative Growth Portfolio, Finance sector; Shares outstanding: 44.9 million; Market cap: $3.6 billion; Price-to-sales ratio: 2.1; Dividend yield: 1.9%; TSINetwork Rating: Average; www.dnb.com) shot up from around $70 in late July 2012 on reports that the company may be trying to sell itself.
Dun & Bradstreet recently cut its full-year revenue outlook for 2012 because the slowing global economy is hurting demand for its credit reports. It now expects revenue to rise between 0% and 3%, down from its earlier forecast of 3% to 5%. However, an ongoing cost-cutting plan should continue to push up its earnings.
Until the company provides more information, we see the stock as a hold.
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Dun & Bradstreet recently cut its full-year revenue outlook for 2012 because the slowing global economy is hurting demand for its credit reports. It now expects revenue to rise between 0% and 3%, down from its earlier forecast of 3% to 5%. However, an ongoing cost-cutting plan should continue to push up its earnings.
Until the company provides more information, we see the stock as a hold.
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CAMPBELL SOUP CO. $35 (New York symbol CPB; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 316.0 million; Market cap: $11.1 billion; Price-to-sales ratio: 1.4; Dividend yield: 3.3%; TSINetwork Rating: Above Average; www.campbellsoupcompany.com) is the world’s largest maker of canned soups. It also makes Prego canned pasta and sauces, Pepperidge Farm cookies and V8 vegetable juices.
In its 2012 fiscal year, which ended July 29, 2012, Campbell’s earnings fell 7.4%, to $783 million from $846 million in fiscal 2011. The company spent $412 million on share buybacks in fiscal 2012. Because of fewer shares outstanding, earnings per share fell 3.9%, to $2.44 from $2.54.
These figures exclude costs related to a recent restructuring plan, under which the company cut jobs and closed its Russian operations.
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In its 2012 fiscal year, which ended July 29, 2012, Campbell’s earnings fell 7.4%, to $783 million from $846 million in fiscal 2011. The company spent $412 million on share buybacks in fiscal 2012. Because of fewer shares outstanding, earnings per share fell 3.9%, to $2.44 from $2.54.
These figures exclude costs related to a recent restructuring plan, under which the company cut jobs and closed its Russian operations.
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CONAGRA FOODS INC. $28 (New York symbol CAG; Income Portfolio, Consumer sector; Shares outstanding: 406.1 million; Market cap: $11.4 billion; Price-to-sales ratio: 0.8; Dividend yield: 3.6%; TSINetwork Rating: Above Average; www. conagrafoods.com) makes a wide variety of packaged foods, including Chef Boyardee canned pasta, Hunt’s tomato sauce, Peter Pan peanut butter, Orville Redenbacher popcorn and Reddiwip whipped cream.
In its fiscal 2013 first quarter, which ended August 26, 2012, ConAgra’s earnings soared 166.6%, to $250.1 million, or $0.61 a share. A year earlier, it earned $93.8 million, or $0.23 a share.
If you exclude all unusual items, including gains and losses on hedging contracts that ConAgra uses to lock in prices for wheat, corn and other ingredients, earnings per share would have risen 41.9%, to $0.44 from $0.31.
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In its fiscal 2013 first quarter, which ended August 26, 2012, ConAgra’s earnings soared 166.6%, to $250.1 million, or $0.61 a share. A year earlier, it earned $93.8 million, or $0.23 a share.
If you exclude all unusual items, including gains and losses on hedging contracts that ConAgra uses to lock in prices for wheat, corn and other ingredients, earnings per share would have risen 41.9%, to $0.44 from $0.31.
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H.J. HEINZ CO. $56 (New York symbol HNZ; Income Portfolio, Consumer sector; Shares outstanding: 320.2 million; Market cap: $17.9 billion; Price-to-sales ratio: 1.5; Dividend yield: 3.7%; TSINetwork Rating: Above Average; www.heinz.com) makes a wide variety of processed foods, including condiments, sauces, soups, baked beans, pastas and baby food. Its flagship product, Heinz ketchup, accounts for about 60% of U.S. ketchup sales.
The company continues to target fast-growing markets like China, Russia and Brazil for new growth. For example, in April 2011 it bought 80% of Brazil’s leading maker of tomato pastes, sauces and condiments for $493.5 million.
Even with these new operations, Heinz’s sales fell 1.5% in its fiscal 2013 first quarter, which ended July 29, 2012, to $2.79 billion from $2.83 billion a year earlier. However, the company gets 60% of its revenue from outside North America, and the higher U.S. dollar is hurting the value of its overseas sales.
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The company continues to target fast-growing markets like China, Russia and Brazil for new growth. For example, in April 2011 it bought 80% of Brazil’s leading maker of tomato pastes, sauces and condiments for $493.5 million.
Even with these new operations, Heinz’s sales fell 1.5% in its fiscal 2013 first quarter, which ended July 29, 2012, to $2.79 billion from $2.83 billion a year earlier. However, the company gets 60% of its revenue from outside North America, and the higher U.S. dollar is hurting the value of its overseas sales.
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GENERAL MILLS INC. $40 (New York symbol GIS, Conservative Growth Portfolio, Consumer sector; Shares outstanding: 645.2 million; Market cap: $25.8 billion; Price-to-sales ratio: 1.5; Dividend yield: 3.3%; TSINetwork Rating: Above Average; www.generalmills.com) is one of the world’s largest food makers. Its top brands include Big G (cereal), Green Giant (canned and frozen vegetables), Pillsbury (baking dough), Old El Paso (tacos) and Progresso (soups and sauces).
In General Mills’ fiscal 2013 first quarter, which ended August 26, 2012, its sales rose 5.3%, to $4.05 billion from $3.8 billion a year earlier. Most of this gain is due to the company’s July 2011 purchase of a 51% stake in the private company that makes Yoplait yogurt; General Mills has made Yoplait products under license in the U.S. since 1977. The company also recently paid $940 million for a privately held maker of snacks and convenience meals in Brazil.
The extra sales from these new businesses helped offset the negative impact of foreign exchange rates; overseas markets supplied 27% of its total sales. As well, General Mills lowered some of its prices to compete with low-cost generic brands.
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In General Mills’ fiscal 2013 first quarter, which ended August 26, 2012, its sales rose 5.3%, to $4.05 billion from $3.8 billion a year earlier. Most of this gain is due to the company’s July 2011 purchase of a 51% stake in the private company that makes Yoplait yogurt; General Mills has made Yoplait products under license in the U.S. since 1977. The company also recently paid $940 million for a privately held maker of snacks and convenience meals in Brazil.
The extra sales from these new businesses helped offset the negative impact of foreign exchange rates; overseas markets supplied 27% of its total sales. As well, General Mills lowered some of its prices to compete with low-cost generic brands.
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NORDION INC. $6.87 (Toronto symbol NDN; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 62.0 million; Market cap: $425.9 million; Price-to-sales ratio: 1.0; Dividend suspended in September 2012; TSINetwork Rating: Extra Risk; www.nordion.com) fell 30% after it lost its arbitration case against government-owned Atomic Energy of Canada Ltd. It may also have to pay part of Atomic Energy’s legal costs. Nordion gets 40% of its revenue from selling isotopes for medical research and cancer treatments. Most of its isotopes come from Atomic Energy’s 53-year old Chalk River nuclear reactor near Ottawa. In 1996, the company hired Atomic Energy to build two new reactors, called MAPLE, which would replace Chalk River. In 2006, Atomic Energy bought MAPLE and agreed to supply isotopes to Nordion for 40 years. However, Atomic Energy shut down MAPLE in 2008 due to rising costs....
All three of these telecom firms are using their steady cash flows to upgrade their networks with the latest technology. That’s letting them launch profitable new services, such as Internet TV and video calling, that are cutting their reliance on their shrinking telephone (or land line) businesses. These popular services are also helping all three companies maintain their high dividends. BCE INC. $44 (Toronto symbol BCE; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 773.9 million; Market cap: $34.1 billion; Priceto- sales ratio: 1.6; Dividend yield: 5.2%; TSINetwork Rating: Above Average; www.bce.ca) has 5.9 million telephone customers in Ontario and Quebec, as well as 2.1 million high-speed Internet subscribers and 2.1 million TV clients. In addition, the company’s wireless business now has 7.5 million subscribers across Canada. BCE continues to expand its media division, which includes the 28-station CTV Television Network, 30 specialty channels and 33 radio stations. The company recently agreed to buy Astral Media (Toronto symbols ACM.A and ACM.B), which owns 22 TV stations, 84 radio stations and several pay TV and specialty channels, such as The Movie Network, Family Channel and Teletoon. Astral also owns billboards and sells other outdoor advertising in Quebec, Ontario and B.C....