price to sales ratio
TOYOTA MOTOR CO. ADRs $84 (New York symbol TM; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.7 billion; Market cap: $142.8 billion; Price-to-sales ratio: 0.7; Dividend yield: 1.5%; TSINetwork Rating: Above Average; www.toyota.com) is Japan’s largest automobile maker and the world’s second-biggest after General Motors. Toyota also makes industrial equipment, such as forklifts and prefabricated housing. Like most carmakers, it offers vehicle loans through its financing division.
The company is starting to recover from the disruptions caused by the March 2011 earthquake and tsunami in Japan and the recent flooding in Thailand. Toyota sold 2.0 million vehicles in its fiscal 2012 third quarter, which ended December 31, 2011, up 9.3% from 1.8 million a year earlier.
As a result, its revenue rose 12.3%, to $63.2 billion from $56.3 billion. However, higher income taxes and unfavourable exchange rates cut its earnings by 6.8%, to $1.05 billion, or $0.61 per ADR, from $1.1 billion, or $0.65 per ADR. (Each American Depositary Receipt represents two Toyota common shares.)
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The company is starting to recover from the disruptions caused by the March 2011 earthquake and tsunami in Japan and the recent flooding in Thailand. Toyota sold 2.0 million vehicles in its fiscal 2012 third quarter, which ended December 31, 2011, up 9.3% from 1.8 million a year earlier.
As a result, its revenue rose 12.3%, to $63.2 billion from $56.3 billion. However, higher income taxes and unfavourable exchange rates cut its earnings by 6.8%, to $1.05 billion, or $0.61 per ADR, from $1.1 billion, or $0.65 per ADR. (Each American Depositary Receipt represents two Toyota common shares.)
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WAL-MART STORES INC. $59 (New York symbol WMT; Conservative Growth Portfolio: Consumer sector; Shares outstanding: 3.4 billion; Market cap: $200.6 billion; Price-to-sales ratio: 0.5; Dividend yield: 2.5%; TSINetwork Rating: Above Average; www.walmart.com) is buying 51% of Yihaodian, a Chinese company that sells groceries, clothing, consumer electronics and other goods over the Internet.
Wal-Mart did not say how much it is paying for this investment, but it already owns a minority stake in Yihaodian. This familiarity cuts the risk of an unpleasant surprise. As well, Wal-Mart’s expertise will help this company expand sales and cut costs. The deal should close later this year.
This is the latest in a series of acquisitions that have expanded Wal-Mart’s overseas operations. That’s helping it offset slower growth in the U.S., which accounts for 60% of its overall sales.
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Wal-Mart did not say how much it is paying for this investment, but it already owns a minority stake in Yihaodian. This familiarity cuts the risk of an unpleasant surprise. As well, Wal-Mart’s expertise will help this company expand sales and cut costs. The deal should close later this year.
This is the latest in a series of acquisitions that have expanded Wal-Mart’s overseas operations. That’s helping it offset slower growth in the U.S., which accounts for 60% of its overall sales.
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VISA INC. $116 (New York symbol V; Conservative Growth Portfolio, Finance sector; Shares outstanding: 813.3 million; Market cap: $94.3 billion; Price-to-sales ratio: 9.8; Dividend yield: 0.8%; TSINetwork Rating: Above Average; www.visa.com) operates the world’s largest retail electronic payments network. The company processes credit, debit, prepaid and commercial payments under the Visa, Visa Electron, Interlink and PLUS brands.
Visa’s credit cards are accepted around the world. Visa/PLUS is one of the largest global automated teller machine networks, offering cash access in more than 200 countries.
The company first sold shares to the public at $44; it began trading on New York in March 2008.
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Visa’s credit cards are accepted around the world. Visa/PLUS is one of the largest global automated teller machine networks, offering cash access in more than 200 countries.
The company first sold shares to the public at $44; it began trading on New York in March 2008.
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VISA INC. $116 (New York symbol V; Conservative Growth Portfolio, Finance sector; Shares outstanding: 813.3 million; Market cap: $94.3 billion; Price-to-sales ratio: 9.8; Dividend yield: 0.8%; TSINetwork Rating: Above Average; www.visa.com) operates the world’s largest retail electronic payments network. The company processes credit, debit, prepaid and commercial payments under the Visa, Visa Electron, Interlink and PLUS brands.
Visa’s credit cards are accepted around the world. Visa/PLUS is one of the largest global automated teller machine networks, offering cash access in more than 200 countries.
The company first sold shares to the public at $44; it began trading on New York in March 2008.
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Visa’s credit cards are accepted around the world. Visa/PLUS is one of the largest global automated teller machine networks, offering cash access in more than 200 countries.
The company first sold shares to the public at $44; it began trading on New York in March 2008.
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Enbridge continues to invest heavily in its pipelines and other businesses. Since 2008, it has started up over $12 billion worth of new growth projects. That’s equal to 39% of its market cap. The company now wants to take advantage of rising oil sands production by building the Northern Gateway pipeline, which would pump crude oil from Edmonton to a proposed storage terminal in Kitimat, B.C. From there, the oil would be shipped by tanker to refineries in Asia. At $5.5 billion, Northern Gateway is the single biggest pipeline project in Enbridge’s 63-year history. If regulators approve, the line could start up in 2017....
GENNUM CORP. $13.50 (Toronto symbol GND; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 35.5 million; Market cap: $477.8 million; Price-to-sales ratio: 3.5; Dividend yield: 1.0%; TSINetwork Rating: Average; www.gennum.com) soared 119% in one day after the company accepted a $13.55-a-share takeover offer from U.S.-based Semtech Corp. (Nasdaq symbol SMTC). It’s clear that Semtech shares our high opinion of this well-managed junior company. Gennum went through a sharp setback in the recession, as TV broadcasters had less to spend on the company’s equipment, which lets them store, edit and transfer video signals. That’s why the stock fell from $14.50 in January 2007 to just $3.50 in December 2008. It rebounded to $8.35 in February 2011, but moved down to $5.75 in December 2011....
Ten oil sands operators have already agreed to use Enbridge’s Northern Gateway pipeline, which would let them ship more of their oil to Asia. These companies have also pledged a total of $200 million to fund the new line’s initial development and engineering. Enbridge has not said which oil companies have committed to the pipeline, but this group likely includes Suncor, Imperial Oil and Cenovus. SUNCOR ENERGY INC. $35 (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.6 billion; Market cap: $56.0 billion; Price-to-sales ratio: 1.3; Dividend yield: 1.3%; TSINetwork Rating: Average; www.suncor.com) became Canada’s largest integrated oil company in 2009, when it merged with Petro-Canada. It gets 60% of its production from its oil sands projects in Alberta; the remaining 40% is conventional oil and natural gas. Suncor also operates four refineries and 1,500 gas stations under the Petro-Canada banner....
BELL ALIANT INC. $28 (Toronto symbol BA, Conservative Growth Portfolio, Utilities sector; Shares outstanding: 229.1 million; Market cap: $6.4 billion; Price-to-sales ratio: 2.3; Dividend yield: 6.8%; TSINetwork Rating: Average; www.bellaliant.ca) sells telephone and Internet services to 2.6 million customers in Atlantic Canada, as well as rural parts of Ontario and Quebec. The company also sells wireless services through an alliance with BCE Inc., which owns 43.8% of Bell Aliant. We’ve lowered Bell Aliant’s TSINetwork Rating to Average from Above Average. It’s still prominent in its industry, with a record of steady profits and dividends, and its balance sheet remains strong. However, it faces rising competition across all of its businesses. In addition, many of its phone customers are giving up their land lines and switching to wireless devices. Bell Aliant is still a buy.
BANK OF NOVA SCOTIA $52 (Toronto symbol BNS; Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.1 billion; Market cap: $57.2 billion; Price-to-sales ratio: 2.1; Dividend yield: 4.0%; TSINetwork Rating: Above Average; www.scotiabank.com) is raising $1.7 billion by selling up to 33 million common shares for $50.25 each. The bank is also thinking about selling Scotia Plaza, its 68-storey office tower in downtown Toronto. Bank of Nova Scotia could get up to $1 billion for this building. The cash from these sales will help Bank of Nova Scotia comply with new international regulations that require banks to maintain more capital to cover potential loan losses. A stronger balance sheet will also help the bank pursue more acquisitions, particularly in fast-growing markets in Asia and Latin America....
ENCANA CORP. $19 (Toronto symbol ECA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 736.3 million; Market cap: $14.0 billion; Price-to-sales ratio: 1.8; Dividend yield: 4.0%; TSINetwork Rating: Average; www.encana.com) is one of North America’s largest natural gas producers. The company prefers to focus on large unconventional reserves, including shale gas, which is natural gas that is trapped in rock formations. To extract it, companies must pump water and chemicals into the rock. This fractures the rock and releases the natural gas. Encana’s proven and probable reserves could last 23 years. In 2011, the company agreed to sell $3.5 billion of non-essential assets (all amounts except share price and market cap in U.S. dollars). The sales are part of Encana’s plan to focus on its main gas-producing properties in Alberta, B.C., Wyoming, Michigan, Colorado and Louisiana. The company will also use the proceeds to maintain its quarterly dividend of $0.20 U.S. a share, for a 4.0% annualized yield....