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Brembo S.p.A. (BIT:BRE) Earns A Nice Return On Capital Employed Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we are going to look at Brembo S.p.A. (BIT:BRE) to see whether it might be an attractive investment prospect. Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. First, we'll go over how we calculate ROCE. Second, we'll look at its ROCE compared to similar companies. Finally, we'll look at how its current liabilities affect its ROCE. ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Generally speaking a higher ROCE is better. Ultimately, it is a useful but imperfect metric. Renowned investment researcher Michael Mauboussinhas suggestedthat a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'. The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Brembo: 0.19 = €324m ÷ (€2.7b - €1.0b) (Based on the trailing twelve months to March 2019.) So,Brembo has an ROCE of 19%. See our latest analysis for Brembo ROCE is commonly used for comparing the performance of similar businesses. In our analysis, Brembo's ROCE is meaningfully higher than the 8.8% average in the Auto Components industry. We would consider this a positive, as it suggests it is using capital more effectively than other similar companies. Regardless of where Brembo sits next to its industry, its ROCE in absolute terms appears satisfactory, and this company could be worth a closer look. Brembo's current ROCE of 19% is lower than its ROCE in the past, which was 26%, 3 years ago. Therefore we wonder if the company is facing new headwinds. The image below shows how Brembo's ROCE compares to its industry, and you can click it to see more detail on its past growth. When considering ROCE, bear in mind that it reflects the past and does not necessarily predict the future. ROCE can be deceptive for cyclical businesses, as returns can look incredible in boom times, and terribly low in downturns. ROCE is only a point-in-time measure. Future performance is what matters, and you can see analyst predictions in ourfreereport on analyst forecasts for the company. Current liabilities are short term bills and invoices that need to be paid in 12 months or less. The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. To check the impact of this, we calculate if a company has high current liabilities relative to its total assets. Brembo has total liabilities of €1.0b and total assets of €2.7b. Therefore its current liabilities are equivalent to approximately 37% of its total assets. Brembo has a middling amount of current liabilities, increasing its ROCE somewhat. With a decent ROCE, the company could be interesting, but remember that the level of current liabilities make the ROCE look better. Brembo looks strong on this analysis,but there are plenty of other companies that could be a good opportunity. Here is afree listof companies growing earnings rapidly. I will like Brembo better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Calculating The Fair Value Of Fenix Outdoor International AG (STO:FOI B) Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Fenix Outdoor International AG (STO:FOI B) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. I will be using the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple! Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model. View our latest analysis for Fenix Outdoor International We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: [{"": "Levered FCF (\u20ac, Millions)", "2019": "\u20ac80.00", "2020": "\u20ac84.00", "2021": "\u20ac86.00", "2022": "\u20ac87.53", "2023": "\u20ac88.73", "2024": "\u20ac89.70", "2025": "\u20ac90.51", "2026": "\u20ac91.19", "2027": "\u20ac91.79", "2028": "\u20ac92.34"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x1", "2020": "Analyst x1", "2021": "Analyst x1", "2022": "Est @ 1.78%", "2023": "Est @ 1.38%", "2024": "Est @ 1.09%", "2025": "Est @ 0.9%", "2026": "Est @ 0.76%", "2027": "Est @ 0.66%", "2028": "Est @ 0.59%"}, {"": "Present Value (\u20ac, Millions) Discounted @ 6.16%", "2019": "\u20ac75.36", "2020": "\u20ac74.53", "2021": "\u20ac71.88", "2022": "\u20ac68.91", "2023": "\u20ac65.80", "2024": "\u20ac62.66", "2025": "\u20ac59.55", "2026": "\u20ac56.52", "2027": "\u20ac53.59", "2028": "\u20ac50.78"}] Present Value of 10-year Cash Flow (PVCF)= €639.55m "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 0.4%. We discount the terminal cash flows to today's value at a cost of equity of 6.2%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = €92m × (1 + 0.4%) ÷ (6.2% – 0.4%) = €1.6b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €€1.6b ÷ ( 1 + 6.2%)10= €890.20m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is €1.53b. In the final step we divide the equity value by the number of shares outstanding. This results in an intrinsic value estimate in the company’s reported currency of €113.74. However, FOI B’s primary listing is in Switzerland, and 1 share of FOI B in EUR represents 10.565 ( EUR/ SEK) share of OM:FOI B,so the intrinsic value per share in SEK is SEK1201.61.Compared to the current share price of SEK1000, the company appears about fair value at a 17% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Fenix Outdoor International as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.2%, which is based on a levered beta of 0.961. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Whilst important, DCF calculation shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Fenix Outdoor International, I've put together three further aspects you should further examine: 1. Financial Health: Does FOI B have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Future Earnings: How does FOI B's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with ourfree analyst growth expectation chart. 3. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of FOI B? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every SE stock every day, so if you want to find the intrinsic value of any other stock justsearch here. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Here's What Fenix Outdoor International AG's (STO:FOI B) ROCE Can Tell Us Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we are going to look at Fenix Outdoor International AG (STO:FOI B) to see whether it might be an attractive investment prospect. Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. First of all, we'll work out how to calculate ROCE. Second, we'll look at its ROCE compared to similar companies. Then we'll determine how its current liabilities are affecting its ROCE. ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. In general, businesses with a higher ROCE are usually better quality. Ultimately, it is a useful but imperfect metric. Author Edwin Whitingsaysto be careful when comparing the ROCE of different businesses, since 'No two businesses are exactly alike.' Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Fenix Outdoor International: 0.21 = €85m ÷ (€513m - €101m) (Based on the trailing twelve months to March 2019.) Therefore,Fenix Outdoor International has an ROCE of 21%. View our latest analysis for Fenix Outdoor International One way to assess ROCE is to compare similar companies. In our analysis, Fenix Outdoor International's ROCE is meaningfully higher than the 8.0% average in the Specialty Retail industry. We would consider this a positive, as it suggests it is using capital more effectively than other similar companies. Regardless of the industry comparison, in absolute terms, Fenix Outdoor International's ROCE currently appears to be excellent. The image below shows how Fenix Outdoor International's ROCE compares to its industry, and you can click it to see more detail on its past growth. It is important to remember that ROCE shows past performance, and is not necessarily predictive. ROCE can be deceptive for cyclical businesses, as returns can look incredible in boom times, and terribly low in downturns. ROCE is only a point-in-time measure. What happens in the future is pretty important for investors, so we have prepared afreereport on analyst forecasts for Fenix Outdoor International. Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual. To check the impact of this, we calculate if a company has high current liabilities relative to its total assets. Fenix Outdoor International has total assets of €513m and current liabilities of €101m. Therefore its current liabilities are equivalent to approximately 20% of its total assets. This is quite a low level of current liabilities which would not greatly boost the already high ROCE. Low current liabilities and high ROCE is a good combination, making Fenix Outdoor International look quite interesting. Fenix Outdoor International looks strong on this analysis,but there are plenty of other companies that could be a good opportunity. Here is afree listof companies growing earnings rapidly. I will like Fenix Outdoor International better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
NBA free agency: Warriors getting D'Angelo Russell stirs up Twitter Somehow, Steph Curry and D'Angelo Russell are teammates. (Photo by Matteo Marchi/Getty Images) In the grand scheme of this year’s NBA free agency, the Warriors’ big moves were supposed to be simple. The Warriors were keeping Klay Thompson while Kevin Durant likely headed for other pastures. The team would still be good, but not the behemoth of the last three years. [Free agency updates: Keep track of the moves, rumors, cap space and more ] What was not supposed to happen was the team landing one of the brightest young stars in free agency with former Brooklyn Nets point guard D’Angelo Russell and completely reinventing its future in the process. Naturally, NBA Twitter wasn’t ready for the Warriors’ shocker on Sunday. Here’s how it ended up reacting. NBA Twitter reacts to Warriors picking up D’Angelo Russell So, to recap Day 1 of free agency: (1/137) — Robby Kalland (@RKalland) July 1, 2019 RIP the Steph Curry just runs a normal NBA offense as the lead initiator and primary option June 30, 2019 - June 30, 2019 — Mike Zavagno (@MZavagno11) July 1, 2019 Lol DLo is the GOAT of blowing up relationships that involve an Iggy https://t.co/dGEdfBdRZy — Josh Hill (@jdavhill) July 1, 2019 NBA fans everywhere when the Warriors traded for D’Angelo Russell. 🤣 pic.twitter.com/hTzClTJ0uL — House of Highlights (@HoHighlights) July 1, 2019 … I guess Russell is a 3 now? — Hardwood Paroxysm (@HPbasketball) July 1, 2019 I did this cool photoshop of Steph and DAR pic.twitter.com/RJztxP8sKh — Scott Howard (@ScottHoward42) July 1, 2019 Andre Iguodala and Kyle Korver are members of the Memphis Grizzlies organization. This has been a tweet about the NBA. — Zach Lowe (@ZachLowe_NBA) July 1, 2019 D’Angelo Russell is a Warrior ‼️‼️😳 pic.twitter.com/TYlIxUlDj3 — Complex Sports (@ComplexSports) July 1, 2019 #Nets : “We got the best free agent class of the summer locked up and now—just for good measure—we’re going to kick the rest of the Western Conference in the junk by helping Golden State.” https://t.co/2AxzPpYbZH — Adam Clanton (@adamclanton) July 1, 2019 NBA free agency >>>> NBA games. https://t.co/LrURZGtmGA — Stewart Mandel (@slmandel) July 1, 2019 Warriors perimeter defense with a Steph Curry and D’angelo Russell backcourt pic.twitter.com/cGSyvgVCHa — Ryan (@Kazzy_Daddy) July 1, 2019 NBA teams: look at all these moves we're making! Warriors: lol okay. watch this https://t.co/pWMWYJL0hJ — SB Nation (@SBNation) July 1, 2019 Towns really celebrated getting DLo before his team realized no one wanted to take Wiggins to help them lmao pic.twitter.com/nWP5miP97Q — sreekar (@sreekyshooter) July 1, 2019 Karl-Anthony Towns looking for D’Angelo Russell at the T-Wolves facility pic.twitter.com/DIrwGXG0h3 — Chris Rosvoglou (@RosvoglouReport) July 1, 2019 Today has been a monumental day in the NBA. This is insane. Also, Lakers really are Kawhi or bust now https://t.co/JU9A9ne17e — Jorge Sedano (@SedanoESPN) July 1, 2019 Wildest Day 1 ever in NBA free-agent history ... #clinched — Marc Stein (@TheSteinLine) July 1, 2019 More from Yahoo Sports: World Cup: England’s coach praises Rapinoe's character Mets put living players in ‘In Memoriam’ montage Gronk's physical appearance sends a clear message about retirement Here are the full rosters for the 2019 MLB All-Star Game
Lil Nas X seemingly comes out in Pride Day post: 'Thought it was obvious' Lil Nas X is celebrating the end of Pride Month with a special message to his fans. The “Old Town Road” rapper appeared to come out as gay on Twitter Sunday, asking his followers to listen more carefully to “C7osure (You like),” a track off of his recent EP 7. “Some of y’all already know, some of y’all don’t care, some of y’all not gone fwm no more. but before this month ends I want y’all to listen closely to c7osure,” X wrote, along with a rainbow emoji. some of y’all already know, some of y’all don’t care, some of y’all not gone fwm no more. but before this month ends i want y’all to listen closely to c7osure. 🌈🤩✨ pic.twitter.com/O9krBLllqQ — nope (@LilNasX) June 30, 2019 In the song, he croons, “Brand new places I’ll choose and I’ll go, I know / Embracin’ this news I behold unfolding / I know, I know, I know it don’t feel like it’s time / But I look back at this moment, I’ll see that I’m fine.” Lil Nas X offered another hint in a followup tweet, posting a zoomed in image of his EP cover art, showing one of the buildings in the background cityscape lit up in rainbow colors. He captioned the photo, “deadass thought I made it obvious.” deadass thought i made it obvious pic.twitter.com/HFCbVqBkLM — nope (@LilNasX) June 30, 2019 X’s tweet was met with an outpouring of support on social media. Some, like TV host Jawn Murray, expressed concern that the rapper, whose genre-blending hit “Old Town Road” was removed from the country charts earlier this year, would have further trouble finding acceptance in the country music scene after seeming to come out. Story continues Go krazy lil bro we love you @LilNasX https://t.co/TK5KA0ujao — Boi-1da (@Boi1da) June 30, 2019 Congrats ... very proud — Sophia (@SophiaCannon) July 1, 2019 if @LilNasX wants to make out I’m here — Nicola Foti (@soundlyawake) July 1, 2019 So you mean to tell me the old town road rapper @LilNasX who's been on top of the charts for weeks and weeks and weeks just came out? The one who made the big hit? Wut? I'm inspired as hell. And very tearful. Thanks, bro. #Pride pic.twitter.com/TPIKn5v7rr — Kenidra4Humanity (@KenidraRWoods_) July 1, 2019 Lil Nas X is also having fun with fans responding to the message, retweeting jokes and congratulations from fans and colleagues in the music industry. Absolutely no one: @LilNasX : i thought it was obvious pic.twitter.com/JHAnLL7Kvo — rosemary (@Rolocolen) July 1, 2019 The announcement is just the latest moment this year for the Atlanta rapper to celebrate. Riding high off his smash hit single “Old Town Road” and its various remixes, X released his eight-track EP earlier this month, featuring Cardi B, OneRepublic’s Ryan Tedder, and, of course, Billy Ray Cyrus. As EW previewed , the EP blends genres from country to trap to pop-punk, and even includes some slow jams alongside its energetic bops. Nine Inch Nails’ Atticus Ross and Blink-182’s Travis Barker have writing credits on the new record, and the track “Panini” interpolates parts of Nirvana’s “In Bloom.” Related content: Everything we know about Lil Nas X’s upcoming EP, 7 Lil Nas X goes down the ‘Old Town Road’ with Billy Ray Cyrus, Chris Rock in new video Lil Nas X drops EP 7, featuring Cardi B and ‘Old Town Road’
While the Leadership Race Heats Up, Can Either Deliver on Brexit? As the global financial markets respond to the news of China and the U.S returning to the battered trade negotiating table, there’s a war of a different kind brewing in the UK. The Conservative Party leadership race is heating up and, while many Tory Party members will have hoped for a new beginning, Brexit continues to suggest more doom and gloom ahead for the blues. Both Boris Johnson and Jeremy Hunt have been hitting the press in a bid to garner the majority support of party members. Time is not on anyone’s side, with the 160,000 Conservative Party members due to receive the postal ballots in a week’s time. Of great importance between now and a televised live debate, scheduled for next Tuesday, will be for both candidates to have a clear plan on Brexit. While the final hustings are expected to take place on 17thJuly, ahead of the announcement of the leadership race winner the following week, public sentiment will likely be driven by the 9thJuly debate. The Tories are already facing the wrath of voters. We saw dire results in both the local elections and the European elections. A snap general election would likely be no different. Since the EU referendum and David Cameron’s tears, support has diminished at a rapid pace, leaving the Tories in a coalition government. Next time around, they may well be missing altogether from the day to day running of the country. That could all change, however, should either of the candidates manage to, not only deliver a plan but one that is palatable for both the EU and for the UK Parliament. Both are tall orders. For the EU, having the likes of Nigel Farage out of the EU Parliament is an incentive to find common ground. That common ground, however, would raise questions over the future of the EU. A simple path out of the EU would certainly have other member states questioning their membership. From a UK parliament perspective. Either candidate will struggle to bring together a divided Conservative Party. Brexit alone has created the division in the ranks. With the EU unwilling to renegotiate and the division in the ranks ever present, it’s more of a mission impossible for the incoming leader. From outside of the Conservative Party, other parties are looking for the Tories to fail on Brexit. A failure to deliver on Brexit would give the opposition party and even the Brexit Party and Lib Dems a chance at taking office. While a snap general election is unlikely between now and Halloween, a general election is on the horizon. With neither the Tories nor the Labour Party performing well in the local elections, another coalition looks inevitable. With the Labour Party sitting on the “remain” side of the fence, coalition partner options could be limited. The Tories may also have an issue with the internal divisions on Brexit. Neither party, therefore, may be able to form a coalition with Nigel Farage’s Brexit Party. In recent days, both candidates have focused on what policies they would introduce if victorious. Neither, however, appear to have a concrete plan on how to tackle the EU’s reluctance to negotiate further. Both, however, are willing to lead the country out of the EU without a deal. As we saw back in April, the UK Parliament is unwilling to let that to happen. Is the only real solution a snap general election to allow voters to decide the fate of the country? Nigel Farage would most certainly find the support of the pro-Brexiteers, but perhaps not all of them. Negative sentiment towards a “no-deal” would test the resolve of some pro-Brexiteers… The markets had anticipated a Johnson v Hunt battle in the leadership race. The expected outcome gave the Pound a 0.53% gain for June. Considering the state of British politics, a 0.23% loss year-to-date to the end of June is a palatable one. We can expect volatility to return, however. Once the Tories have their new leader and he has taken over as Prime Minister, the Brexit show will resume… For the financial markets, Britain remaining with the EU would certainly be the best outcome. 2ndbest would be a deal departure and obviously, the worst-case scenario is a no-deal Brexit. As of today, two scenarios seem to be the most likely. Either a snap election and 2ndEU Referendum or a no-deal Brexit. At the time of writing, the Pound was up by 0.03% to $1.2698. Thisarticlewas originally posted on FX Empire • Natural Gas Price Prediction – Prices Slide but Remain Range Bound • GBP/USD Daily Forecast – Sterling Extends Losses, 1.2600 in Focus • USD/CAD Daily Forecast – 200-day SMA Restraining Pair’s Upward Price Actions • European Equities: Can the Majors Really Continue to Rise with Weak Stats? • Risk Sentiment Cautious as Trade Truce Paints Illusion of Market Stability • Bitcoin Cash – ABC, Litecoin and Ripple Daily Analysis – 02/07/19
What Does Feintool International Holding AG's (VTX:FTON) Share Price Indicate? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Feintool International Holding AG (VTX:FTON), which is in the machinery business, and is based in Switzerland, received a lot of attention from a substantial price movement on the SWX over the last few months, increasing to CHF79 at one point, and dropping to the lows of CHF65. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Feintool International Holding's current trading price of CHF69.3 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Feintool International Holding’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Feintool International Holding According to my valuation model, Feintool International Holding seems to be fairly priced at around 7.8% below my intrinsic value, which means if you buy Feintool International Holding today, you’d be paying a fair price for it. And if you believe the company’s true value is CHF75.18, then there’s not much of an upside to gain from mispricing. So, is there another chance to buy low in the future? Given that Feintool International Holding’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility. Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Feintool International Holding’s earnings over the next few years are expected to increase by 25%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. Are you a shareholder?It seems like the market has already priced in FTON’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value? Are you a potential investor?If you’ve been keeping tabs on FTON, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Feintool International Holding. You can find everything you need to know about Feintool International Holding inthe latest infographic research report. If you are no longer interested in Feintool International Holding, you can use our free platform to see my list of over50 other stocks with a high growth potential. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Is Now The Time To Put SIMONA (FRA:SIM) On Your Watchlist? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks with a good story, even if those businesses lose money. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. So if you're like me, you might be more interested in profitable, growing companies, likeSIMONA(FRA:SIM). Now, I'm not saying that the stock is necessarily undervalued today; but I can't shake an appreciation for the profitability of the business itself. In comparison, loss making companies act like a sponge for capital - but unlike such a sponge they do not always produce something when squeezed. View our latest analysis for SIMONA If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS). It's no surprise, then, that I like to invest in companies with EPS growth. Over the last three years, SIMONA has grown EPS by 12% per year. That's a pretty good rate, if the company can sustain it. I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats). SIMONA maintained stable EBIT margins over the last year, all while growing revenue 6.0% to €418m. That's progress. In the chart below, you can see how the company has grown earnings, and revenue, over time. To see the actual numbers, click on the chart. While it's always good to see growing profits, you should always remember that a weak balance sheet could come back to bite. So check SIMONA'sbalance sheet strength, before getting too excited. Many consider high insider ownership to be a strong sign of alignment between the leaders of a company and the ordinary shareholders. So we're pleased to report that SIMONA insiders own a meaningful share of the business. In fact, they own 64% of the company, so they will share in the same delights and challenges experienced by the ordinary shareholders. This makes me think they will be incentivised to plan for the long term - something I like to see. And their holding is extremely valuable at the current share price, totalling €193m. That means they have plenty of their own capital riding on the performance of the business! As I already mentioned, SIMONA is a growing business, which is what I like to see. If that's not enough on its own, there is also the rather notable levels of insider ownership. That combination appeals to me, for one. So yes, I do think the stock is worth keeping an eye on. Of course, just because SIMONA is growing does not mean it is undervalued. If you're wondering about the valuation, check outthis gauge of its price-to-earnings ratio, as compared to its industry. You can invest in any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here isa list of companies with insider buying in the last three months. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Did Nestlé's (VTX:NESN) Share Price Deserve to Gain 45%? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Generally speaking the aim of active stock picking is to find companies that provide returns that are superior to the market average. And in our experience, buying the right stocks can give your wealth a significant boost. For example, long termNestlé S.A.(VTX:NESN) shareholders have enjoyed a 45% share price rise over the last half decade, well in excess of the market return of around 12% (not including dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 35% in the last year, including dividends. See our latest analysis for Nestlé To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). During five years of share price growth, Nestlé achieved compound earnings per share (EPS) growth of 1.4% per year. This EPS growth is slower than the share price growth of 7.7% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth. You can see how EPS has changed over time in the image below (click on the chart to see the exact values). We know that Nestlé has improved its bottom line lately, but is it going to grow revenue? If you're interested, you could check thisfreereport showing consensus revenue forecasts. It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Nestlé, it has a TSR of 68% for the last 5 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence! It's good to see that Nestlé has rewarded shareholders with a total shareholder return of 35% in the last twelve months. Of course, that includes the dividend. That gain is better than the annual TSR over five years, which is 11%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. Before deciding if you like the current share price, check how Nestlé scores on these3 valuation metrics. But note:Nestlé may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with past earnings growth (and further growth forecast). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CH exchanges. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Kylie Minogue sparkles on Glastonbury stage 14 years after cancer battle By Paul Sandle GLASTONBURY, England (Reuters) - Kylie Minogue delighted a huge crowd at Glastonbury with hits including "Spinning Around", "Shocked" and "Better the Devil You Know", 14 years after illness forced her to cancel a headline performance at the festival. Kylie, as she is universally known, played all the catchy disco pop hits that the audience had come to hear, from "I Should Be So Lucky", her breakthrough 1988 worldwide number one, to 2010 release "All the Lovers". Minogue was due to headline Glastonbury, the world's largest greenfield festival, in 2005, but was forced to pull out after she was diagnosed with breast cancer. "I wished things were different but life is what it is," she said, chocking back tears of emotion. "We're all here together in this moment." She said some of the artists in 2005 had covered her songs, and she welcomed on stage one of them, Coldplay's Chris Martin, to join her in performing "Can't Get You Out of My Head". The gig changed gear midway when the 51-year-old was joined by previous collaborator Nick Cave for the murder-themed ballad "Where the Wild Roses Grow". But the serious interlude was brief in a show that featured a blast of rainbow Pride confetti, four costume changes, and mass singalongs from the sun-bathed capacity crowd, including for the "Spinning Around" finale. Minogue was followed by U.S. singer Miley Cyrus, who opened with "Nothing Breaks Like a Heart", her collaboration with Mark Ronson, who joined her on stage. Her father Billy Ray Cyrus also appeared during the show, performing "Old Town Road", with rapper Lil Nas X. U.S. rock band Vampire Weekend will play the main Pyramid Stage later on Sunday before British goth rock band the Cure close the festival. (Additional reporting by Hanna Rantala; editing by Kate Holton)
Do You Know What CEWE Stiftung & Co. KGaA's (FRA:CWC) P/E Ratio Means? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. To keep it practical, we'll show how CEWE Stiftung & Co. KGaA's (FRA:CWC) P/E ratio could help you assess the value on offer.CEWE Stiftung KGaA has a P/E ratio of 14.35, based on the last twelve months. That is equivalent to an earnings yield of about 7.0%. See our latest analysis for CEWE Stiftung KGaA Theformula for P/Eis: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for CEWE Stiftung KGaA: P/E of 14.35 = €85.7 ÷ €5.97 (Based on the year to March 2019.) A higher P/E ratio means that buyers have to paya higher pricefor each €1 the company has earned over the last year. All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' P/E ratios primarily reflect market expectations around earnings growth rates. When earnings grow, the 'E' increases, over time. And in that case, the P/E ratio itself will drop rather quickly. And as that P/E ratio drops, the company will look cheap, unless its share price increases. It's nice to see that CEWE Stiftung KGaA grew EPS by a stonking 29% in the last year. And it has bolstered its earnings per share by 9.6% per year over the last five years. With that performance, I would expect it to have an above average P/E ratio. The P/E ratio essentially measures market expectations of a company. We can see in the image below that the average P/E (17) for companies in the commercial services industry is higher than CEWE Stiftung KGaA's P/E. CEWE Stiftung KGaA's P/E tells us that market participants think it will not fare as well as its peers in the same industry. Since the market seems unimpressed with CEWE Stiftung KGaA, it's quite possible it could surprise on the upside. It is arguably worth checkingif insiders are buying shares, because that might imply they believe the stock is undervalued. It's important to note that the P/E ratio considers the market capitalization, not the enterprise value. So it won't reflect the advantage of cash, or disadvantage of debt. Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings. Such expenditure might be good or bad, in the long term, but the point here is that the balance sheet is not reflected by this ratio. CEWE Stiftung KGaA has net cash of €9.0m. That should lead to a higher P/E than if it did have debt, because its strong balance sheets gives it more options. CEWE Stiftung KGaA has a P/E of 14.3. That's below the average in the DE market, which is 20. It grew its EPS nicely over the last year, and the healthy balance sheet implies there is more potential for growth. The below average P/E ratio suggests that market participants don't believe the strong growth will continue. When the market is wrong about a stock, it gives savvy investors an opportunity. If the reality for a company is not as bad as the P/E ratio indicates, then the share price should increase as the market realizes this. So thisfreevisual report on analyst forecastscould hold the key to an excellent investment decision. But note:CEWE Stiftung KGaA may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with strong recent earnings growth (and a P/E ratio below 20). We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Should CEWE Stiftung KGaA (FRA:CWC) Be Disappointed With Their 60% Profit? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Generally speaking the aim of active stock picking is to find companies that provide returns that are superior to the market average. Buying under-rated businesses is one path to excess returns. For example, long termCEWE Stiftung & Co. KGaA(FRA:CWC) shareholders have enjoyed a 60% share price rise over the last half decade, well in excess of the market return of around 8.2% (not including dividends). On the other hand, the more recent gains haven't been so impressive, with shareholders gaining just 11%, including dividends. Check out our latest analysis for CEWE Stiftung KGaA While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. During five years of share price growth, CEWE Stiftung KGaA achieved compound earnings per share (EPS) growth of 9.6% per year. That makes the EPS growth particularly close to the yearly share price growth of 9.8%. Therefore one could conclude that sentiment towards the shares hasn't morphed very much. In fact, the share price seems to largely reflect the EPS growth. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image). We know that CEWE Stiftung KGaA has improved its bottom line lately, but is it going to grow revenue? If you're interested, you could check thisfreereport showing consensus revenue forecasts. It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, CEWE Stiftung KGaA's TSR for the last 5 years was 80%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments! It's nice to see that CEWE Stiftung KGaA shareholders have received a total shareholder return of 11% over the last year. That's including the dividend. Having said that, the five-year TSR of 13% a year, is even better. Before deciding if you like the current share price, check how CEWE Stiftung KGaA scores on these3 valuation metrics. If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on DE exchanges. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Zooming in on FRA:CSH's 4.7% Dividend Yield Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we'll take a closer look at CENIT Aktiengesellschaft (FRA:CSH) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. With a goodly-sized dividend yield despite a relatively short payment history, investors might be wondering if CENIT is a new dividend aristocrat in the making. We'd agree the yield does look enticing. Some simple analysis can reduce the risk of holding CENIT for its dividend, and we'll focus on the most important aspects below. Click the interactive chart for our full dividend analysis Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. In the last year, CENIT paid out 91% of its profit as dividends. Its payout ratio is quite high, and the dividend is not well covered by earnings. If earnings are growing or the company has a large cash balance, this might be sustainable - still, we think it is a concern. Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. CENIT paid out 207% of its free cash flow last year, which we think is concerning if cash flows do not improve. Paying out such a high percentage of cash flow suggests that the dividend was funded from either cash at bank or by borrowing, neither of which is desirable over the long term. Cash is slightly more important than profit from a dividend perspective, but given CENIT's payments were not well covered by either earnings or cash flow, we are concerned about the sustainability of this dividend. Consider gettingour latest analysis on CENIT's financial position here. From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. Looking at the last decade of data, we can see that CENIT paid its first dividend at least nine years ago. Although it has been paying a dividend for several years now, the dividend has been cut at least once by more than 20%, and we're cautious about the consistency of its dividend across a full economic cycle. During the past nine-year period, the first annual payment was €0.30 in 2010, compared to €0.60 last year. Dividends per share have grown at approximately 8.0% per year over this time. CENIT's dividend payments have fluctuated, so it hasn't grown 8.0% every year, but the CAGR is a useful rule of thumb for approximating the historical growth. Dividends have grown at a reasonable rate, but with at least one substantial cut in the payments, we're not certain this dividend stock would be ideal for someone intending to live on the income. Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. CENIT's EPS are effectively flat over the past five years. Over the long term, steady earnings per share is a risk as the value of the dividends can be reduced by inflation. When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. It's a concern to see that the company paid out such a high percentage of its earnings and cashflow as dividends. Earnings per share are down, and CENIT's dividend has been cut at least once in the past, which is disappointing. In this analysis, CENIT doesn't shape up too well as a dividend stock. We'd find it hard to look past the flaws, and would not be inclined to think of it as a reliable dividend-payer. Are management backing themselves to deliver performance? Check their shareholdings in CENIT inour latest insider ownership analysis. Looking for more high-yielding dividend ideas? Try ourcurated list of dividend stocks with a yield above 3%. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Is oOh!media Limited (ASX:OML) A Great Dividend Stock? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Is oOh!media Limited (ASX:OML) a good dividend stock? How can we tell? Dividend paying companies with growing earnings can be highly rewarding in the long term. Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. With a 2.8% yield and a four-year payment history, investors probably think oOh!media looks like a reliable dividend stock. A 2.8% yield is not inspiring, but the longer payment history has some appeal. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this. Click the interactive chart for our full dividend analysis Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Looking at the data, we can see that 71% of oOh!media's profits were paid out as dividends in the last 12 months. This is a fairly normal payout ratio among most businesses. It allows a higher dividend to be paid to shareholders, but does limit the capital retained in the business - which could be good or bad. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. The company paid out 84% of its free cash flow as dividends last year, which is adequate, but reduces the wriggle room in the event of a downturn. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. As oOh!media has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A quick check of its financial situation can be done with two ratios: net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and net interest cover. Net debt to EBITDA measures total debt load relative to company earnings (lower = less debt), while net interest cover measures the ability to pay interest on the debt (higher = greater ability to pay interest costs). oOh!media has net debt of 3.41 times its EBITDA, which is getting towards the limit of most investors' comfort zones. Judicious use of debt can enhance shareholder returns, but also adds to the risk if something goes awry. We calculated its interest cover by measuring its earnings before interest and tax (EBIT), and dividing this by the company's net interest expense. oOh!media has EBIT of 9.11 times its interest expense, which we think is adequate. We update our data on oOh!media every 24 hours, so you can always getour latest analysis of its financial health, here. Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. Looking at the data, we can see that oOh!media has been paying a dividend for the past four years. This company's dividend has been unstable, and with a relatively short history, we think it's a little soon to draw strong conclusions about its long term dividend potential. During the past four-year period, the first annual payment was AU$0.056 in 2015, compared to AU$0.11 last year. Dividends per share have grown at approximately 18% per year over this time. The dividends haven't grown at precisely 18% every year, but this is a useful way to average out the historical rate of growth. oOh!media has grown distributions at a rapid rate despite cutting the dividend at least once in the past. Companies that cut once often cut again, but it might be worth considering if the business has turned a corner. With a relatively unstable dividend, it's even more important to evaluate if earnings per share (EPS) are growing - it's not worth taking the risk on a dividend getting cut, unless you might be rewarded with larger dividends in future. It's good to see oOh!media has been growing its earnings per share at 67% a year over the past 5 years. With recent, rapid earnings per share growth and a payout ratio of 71%, this business looks like an interesting prospect if earnings are reinvested effectively. We'd also point out that oOh!media issued a meaningful number of new shares in the past year. Trying to grow the dividend when issuing new shares reminds us of the ancient Greek tale of Sisyphus - perpetually pushing a boulder uphill. Companies that consistently issue new shares are often suboptimal from a dividend perspective. To summarise, shareholders should always check that oOh!media's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. oOh!media's is paying out more than half its income as dividends, but at least the dividend is covered by both reported earnings and cashflow. We were also glad to see it growing earnings, but it was concerning to see the dividend has been cut at least once in the past. In sum, we find it hard to get excited about oOh!media from a dividend perspective. It's not that we think it's a bad business; just that there are other companies that perform better on these criteria. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 7 analysts we track are forecasting for oOh!mediafor freewith publicanalyst estimates for the company. We have also put together alist of global stocks with a market capitalisation above $1bn and yielding more 3%. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Is oOh!media Limited (ASX:OML) A Smart Choice For Dividend Investors? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Is oOh!media Limited (ASX:OML) a good dividend stock? How can we tell? Dividend paying companies with growing earnings can be highly rewarding in the long term. Unfortunately, it's common for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments. Investors might not know much about oOh!media's dividend prospects, even though it has been paying dividends for the last four years and offers a 2.8% yield. While the yield may not look too great, the relatively long payment history is interesting. There are a few simple ways to reduce the risks of buying oOh!media for its dividend, and we'll go through these below. Explore this interactive chart for our latest analysis on oOh!media! Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Looking at the data, we can see that 71% of oOh!media's profits were paid out as dividends in the last 12 months. A payout ratio above 50% generally implies a business is reaching maturity, although it is still possible to reinvest in the business or increase the dividend over time. We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. oOh!media paid out 84% of its cash flow last year. This may be sustainable but it does not leave much of a buffer for unexpected circumstances. It's positive to see that oOh!media's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. As oOh!media has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A quick check of its financial situation can be done with two ratios: net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and net interest cover. Net debt to EBITDA measures total debt load relative to company earnings (lower = less debt), while net interest cover measures the ability to pay interest on the debt (higher = greater ability to pay interest costs). oOh!media is carrying net debt of 3.41 times its EBITDA, which is getting towards the upper limit of our comfort range on a dividend stock that the investor hopes will endure a wide range of economic circumstances. Net interest cover can be calculated by dividing earnings before interest and tax (EBIT) by the company's net interest expense. oOh!media has EBIT of 9.11 times its interest expense, which we think is adequate. Consider gettingour latest analysis on oOh!media's financial position here. One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. Looking at the data, we can see that oOh!media has been paying a dividend for the past four years. This company's dividend has been unstable, and with a relatively short history, we think it's a little soon to draw strong conclusions about its long term dividend potential. During the past four-year period, the first annual payment was AU$0.056 in 2015, compared to AU$0.11 last year. Dividends per share have grown at approximately 18% per year over this time. The dividends haven't grown at precisely 18% every year, but this is a useful way to average out the historical rate of growth. oOh!media has grown distributions at a rapid rate despite cutting the dividend at least once in the past. Companies that cut once often cut again, but it might be worth considering if the business has turned a corner. With a relatively unstable dividend, it's even more important to evaluate if earnings per share (EPS) are growing - it's not worth taking the risk on a dividend getting cut, unless you might be rewarded with larger dividends in future. Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see oOh!media has grown its earnings per share at 67% per annum over the past five years. Earnings per share are sharply up, but we wonder if paying out more than half its earnings (leaving less for reinvestment) is an implicit signal that oOh!media's growth will be slower in the future. We'd also point out that oOh!media issued a meaningful number of new shares in the past year. Regularly issuing new shares can be detrimental - it's hard to grow dividends per share when new shares are regularly being created. To summarise, shareholders should always check that oOh!media's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. First, we think oOh!media is paying out an acceptable percentage of its cashflow and profit. Next, earnings growth has been good, but unfortunately the dividend has been cut at least once in the past. Ultimately, oOh!media comes up short on our dividend analysis. It's not that we think it is a bad company - just that there are likely more appealing dividend prospects out there on this analysis. Earnings growth generally bodes well for the future value of company dividend payments. See if the 7 oOh!media analysts we track are forecasting continued growth with ourfreereport on analyst estimates for the company. Looking for more high-yielding dividend ideas? Try ourcurated list of dividend stocks with a yield above 3%. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Gold steadies as stocks surge; growth risks, bets on rate cuts lend support By Diptendu Lahiri (Reuters) - Gold steadied on Wednesday, paring earlier gains as a rally in equities reduced the attraction of the non-yielding metal, while global growth concerns and prospects for dovish monetary policy kept bullion supported. Spot gold was $1,416.07 per ounce as of 12:12 p.m. EDT (1612 GMT), off its highest level since June 25 of $1,435.99. However, U.S. gold futures were up nearly 1% to $1,419.10. The S&P 500 index hit a record high at the open as benchmark bond yields tumbled on fears of a global recession and expectations of interest rate cuts by central banks. The metal reversed course briefly after the U.S. markets opened, but later steadied. "Gold has had quite a strong performance in the last two days and this fall is just an ebb in the flow," said Daniel Ghali, commodity strategist at TD Securities The case for gold, which hit a six-year high last week at $1,438.63 driven by a dovish outlook from major central banks and an escalation of tensions between the United States and Iran, is still positive, analysts said. European Union leaders' nomination of IMF chief Christine Lagarde as Mario Draghi's replacement at the helm of the European Central Bank reinforced expectations of monetary policy easing in the bloc. "German 10-year Bund yields were at record lows and the U.S. benchmark yields are also falling on government monetary policy, giving the equity markets a boost and taking away investor interest from gold," said Jim Wyckoff, senior analyst at Kitco.com. Meanwhile, U.S. President Donald Trump on Tuesday announced two nominees to fill vacant posts on the Federal Reserve Board. Trump says he wants lower rates to better compete with China and has accused Jerome Powell, whom he appointed to lead the central bank in early 2018, of doing a "bad job." The yields on U.S. 10-year Treasury notes hovered above their lowest level since November 2016 after weaker-than-forecast U.S. private jobs data in June. A number of government yields around the world were also pressured after Bank of England Governor Mark Carney flagged uncertainties over Brexit and trade conflicts that prompted speculation the central bank may lower interest rates. On the technical front, gold will find support at Tuesday's close, around $1,418, and could find resistance around $1,440, TD Securities' Ghali added. Holdings of the SPDR Gold Trust have gained more than 5% over the past one month. Silver was down 0.1% at $15.29 per ounce. The metal is unlikely to follow gold's upward trajectory, analysts said. Platinum climbed 1.7% to $841.12 per ounce, while palladium rose 0.9% to $1,571.55, having earlier touched a more than three-month peak of $1,572.50. (Reporting by Diptendu Lahiri in Bengaluru; Editing by Matthew Lewis and Susan Thomas)
Is Genovis AB (publ) (STO:GENO) Potentially Underrated? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! I've been keeping an eye on Genovis AB (publ) (STO:GENO) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe GENO has a lot to offer. Basically, it is a company with strong financial health as well as a excellent growth outlook. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at thereport on Genovis here. One reason why investors are attracted to GENO is its notable earnings growth potential in the near future of 64%. The optimistic bottom-line growth is supported by an outstanding revenue growth of 77% over the same time period, which indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives. GENO's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that GENO has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. GENO’s debt-to-equity ratio stands at -8.1%, which means its debt level is relatively low. Investors’ risk associated with debt is very low and the company has plenty of headroom to grow debt in the future, should the need arise. For Genovis, I've put together three essential aspects you should look at: 1. Historical Performance: What has GENO's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity. 2. Valuation: What is GENO worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? Theintrinsic value infographic in our free research reporthelps visualize whether GENO is currently mispriced by the market. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of GENO? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Big Machine's Scott Borchetta Responds to Taylor Swift's Post on Scooter Braun: 'It's Time for Some Truth' Hours after Taylor Swift penned a strongly worded open letter calling out Scooter Braun and her former record label Big Machine, the company's founder, Scott Borchetta, is weighing in. In her post, Swift claimed that she's been trying to gain control and ownership over her master recordings "for years" but that she was instead "given an opportunity to sign back up to Big Machine Records and earn one album back at a time, one for every new one I turned in." The singer -- who left Big Machine Records for Universal Music Group late last year -- also claimed that she only found out that Braun's holding company had bought Big Machine, and thus owned her masters, on Sunday morning "as it was announced to the world." According to a post on the label's website , Borchetta alleges that Swift misrepresented the truth in her post. "In regard to a post earlier today from Taylor, its time to set some things straight," Borchetta began, before arguing that Swift's father, Scott Swift, is a shareholder at the record label and was thus made aware of the sale five days before it was announced. Additionally, Borchetta claims he personally texted Swift to let her know about the sale Saturday evening. However, a spokesperson for Swift refuted both of those claims on Monday in a statement. "Scott Swift is not on the board of directors and has never been. On June 25, there was a shareholder phone call that Scott Swift did not participate in due to a very strict NDA that bound all shareholders and prohibited any discussion at all without risk of severe penalty," Swift's spokesperson said. "Her dad did not join that call because he did not want to be required to withhold any information from his own daughter." "Taylor found out from the news articles when she woke up before seeing any text from Scott Borchetta and he did not call her in advance," the statement continued. Story continues Regarding Swift's claims that she was told she'd have to "earn" her albums back, Borchetta shared what he claimed were deal points that they'd agreed upon during negotiations before Swift left for Universal Music Group. "As you will read, 100% of all Taylor Swift assets were to be transferred to her immediately upon signing the new agreement. We were working together on a new type of deal for our new streaming world that was not necessarily tied to albums but more of a length of time," Borchetta said, pointing to the fact that Swift's new contract would have potentially locked her in at Big Machine Records for another ten years. "We are an independent record company. We do not have tens of thousands of artists and recordings. My offer to Taylor, for the size of our company, was extraordinary." https://taylorswift.tumblr.com/post/185958366550/for-years-i-asked-pleaded-for-a-chance-to-own-my "Taylor had every chance in the world to own not just her master recordings, but every video, photograph, everything associated to her career. She chose to leave," Borchetta added. In her lengthy post on Tumblr on Sunday, Swift also made multiple claims about Braun, alleging that he had bullied her for years and alleged he used his clients, Justin Bieber and Kanye West, to do so. "Scooter has stripped me of my life's work, that I wasn't given an opportunity to buy. Essentially, my musical legacy is about to lie in the hands of someone who tried to dismantle it," Swift wrote. The singer called the reported $300 million deal -- in which Braun also won the roster of Florida Georgia Line, Thomas Rhett, Reba McEntire and more -- her "worst case scenario." "When I left my masters in [Big Machine CEO] Scott [Borchetta's] hands, I made peace with the fact that eventually he would sell them. Never in my worst nightmares did I imagine the buyer would be Scooter. Any time Scott Borchetta has heard the words 'Scooter Braun' escape my lips, it was when I was either crying or trying not to. He knew what he was doing; they both did. Controlling a woman who didn't want to be associated with them. In perpetuity. That means forever," she claimed. In Borchetta's rebuttal, he claims to have "certainly never experienced" seeing Swift in tears regarding Braun, and seemed to throw shade at Swift for having not participated in two high-profile charity concerts, One Love Manchester and a benefit performance following the Marjory Stoneman Douglas High School shooting in Parkland, Florida. "Scooter was never anything but positive about Taylor. He called me directly about Manchester to see if Taylor would participate (she declined). He called me directly to see if Taylor wanted to participate in the Parkland March (she declined). Scooter has always been and will continue to be a supporter and honest custodian for Taylor and her music," Borchetta wrote. Since Swift's post, dozens of celebs have seemingly weighed in , with Cara Delevingne and Todrick Hall actively speaking out in defense of the 29-year-old singer, and Justin Bieber and Braun's wife, Yael, delivering scathing posts in defense of him. Braun himself has remained silent, apart from a celebratory Instagram pic, posted before Swift's message, where he announced the news. "Genuinely grateful for my new partner @scott.borchetta and the entire @bigmachinelabelgroup team. We together at Ithaca are going to do amazing things and our hope is to give every artist the tools they need to succeed in all arenas. Thank you again for the trust Scott. Lets get it!" Braun wrote, alongside a photo of himself and Borchetta. However, Borchetta appeared to throw some shade at Swift, commenting hours after posting his rebuttal, "More excited than ever after today!" Scooter Braun/Instagram See more on Swift in the video below. RELATED CONTENT: Taylor Swift's Feuds: A Breakdown of Her Beef With Scooter Braun, Kanye West and Others Taylor Swift's BFF Todrick Hall Calls Scooter Braun an 'Evil Person,' Slams His Wife & Hailey Baldwin Celebs Take Sides After Taylor Swift Drops Scooter Braun Bombshell: Halsey, Justin Bieber and More Weigh In Justin Bieber Accuses Taylor Swift of 'Crossing a Line' in Apology Over Scooter Braun Drama Related Articles: Hollywood Bikini Bods Over 40 Biggest Celebrity Breakups of 2019 -- So Far! Celebrities in Their Underwear
Do Insiders Own Shares In KPS AG (FRA:KSC)? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Every investor in KPS AG (FRA:KSC) should be aware of the most powerful shareholder groups. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.' KPS is not a large company by global standards. It has a market capitalization of €273m, which means it wouldn't have the attention of many institutional investors. In the chart below below, we can see that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholder can tell us about KSC. Check out our latest analysis for KPS Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. KPS already has institutions on the share registry. Indeed, they own 16% of the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of KPS, (below). Of course, keep in mind that there are other factors to consider, too. KPS is not owned by hedge funds. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. It seems that insiders own more than half the KPS AG stock. This gives them a lot of power. So they have a €156m stake in this €273m business. It is good to see this level of investment. You cancheck here to see if those insiders have been buying recently. The general public, with a 26% stake in the company, will not easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. While it is well worth considering the different groups that own a company, there are other factors that are even more important. I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow, for free. If you would prefer discover what analysts are predicting in terms of future growth, do not miss thisfreereport on analyst forecasts. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Why Sanoma Oyj (HEL:SAA1V) Is An Attractive Investment To Consider Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Attractive stocks have exceptional fundamentals. In the case of Sanoma Oyj (HEL:SAA1V), there's is a financially-healthy , dividend-paying company with a a great track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the fullreport on Sanoma Oyj here. Over the past few years, SAA1V has demonstrated a proven ability to generate robust returns of 21% Not surprisingly, SAA1V outperformed its industry which returned 5.5%, giving us more conviction of the company's capacity to drive bottom-line growth going forward. SAA1V appears to have made good use of debt, producing operating cash levels of 0.37x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. Debt funding requires timely payments on interest to lenders. SAA1V’s earnings sufficiently covered its interest in the prior year, which indicates there’s low risk associated with the company not being able to meet these key expenses. SAA1V's high dividend payments make it one of the best dividend stocks on the market, and its profitability ensures that dividends are well-covered by its net income. For Sanoma Oyj, I've put together three key aspects you should look at: 1. Future Outlook: What are well-informed industry analysts predicting for SAA1V’s future growth? Take a look at ourfree research report of analyst consensusfor SAA1V’s outlook. 2. Valuation: What is SAA1V worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? Theintrinsic value infographic in our free research reporthelps visualize whether SAA1V is currently mispriced by the market. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of SAA1V? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Nuggets agree to extension with Jamal Murray The Denver Nuggets are locking down Jamal Murray. (AP Photo/Mary Altaffer) In the middle of a frenetic free agency, Jamal Murray received his payday after helping lead the Denver Nuggets to the No. 2 seed in the Western Conference. The Nuggets have agreed to a five-year, $170 million deal with Murray, according to Shams Charania of The Athletic. Denver Nuggets rising star Jamal Murray has agreed to a five-year, $170M maximum contract extension, agent Mike George of OneLegacy tells @TheAthleticNBA @Stadium . — Shams Charania (@ShamsCharania) July 1, 2019 Murray just finished up a season in which he led the 54-28 Nuggets in minutes per game while averaging 18.2 points and 4.8 assists per game. [Free agency updates: Keep track of the moves, rumors, cap space and more ] Selected seventh overall in the 2016 NBA draft, Murray has steadily progressed throughout his three-year career. As much as Murray produced last season, handing the 22-year-old a max contract is a bet on him continuing to develop into one of the NBA’s top guards. A similar bet worked out well enough last offseason when Nikola Jokic, fresh off a five-year, $147 million deal , delivered a first-team All-NBA campaign. With Jokic and Murray now on board for the next four seasons and taking up a significant chunk of their cap space, the Nuggets are likely hoping they’ve found the two-man core to build around. As the West opens up more than it has at any point in the last half-decade, we’ll see if they were correct. More from Yahoo Sports: World Cup: England’s coach praises Rapinoe's character Mets put living players in ‘In Memoriam’ montage Gronk's physical appearance sends a clear message about retirement Here are the full rosters for the 2019 MLB All-Star Game
Kylie Jenner to Kim Kardashian: Don't 'bully' Jordyn Woods Part 2 of the season finale of Keeping Up With the Kardashians aired Sunday night with even more drama, as the Tristan Thompson and Jordyn Woods cheating scandal unfolded around Khloé Kardashian . The final episode showed a drunk Khloé finally letting her emotions out and going off on Thompson while on a girls trip in Palm Springs with Kim Kardashian , Kourtney Kardashian and Malika Haqq. "Kylie's best f*ing friend, who sat on a golden fing, shtting throne, like, this is so f*ing whack that these fing b*es think they could go ahead and f* our men," yelled Khloé to mother Kris Jenner over FaceTime. On another FaceTime call with Thompson's friend Savas later in the night, Khloé went off, screaming, "That f*ing ahole. Don't f*ing lie to me about lying, though. Don't fing say you didn't do something that you fing did when you both fing told me you fing kissed, bes." However, before all that went down, Kim had posted some videos to her story of her and Haqq singing along to Kourtney's "breakup playlist," which included lyrics like, "Who is she to you? Don't lie to me." At the time, the videos were interpreted by social media and the internet as throwing shade at Woods, and that did not sit well with Kylie Jenner , who called Kim the next morning in tears. "I just feel like we're bigger than this, we're better than this, and I feel like if you want to call her, yell at her, like, do whatever you want, or let's all talk in person, but I just feel like the singing and the internet stuff, like, it's just not OK," Kylie told Kim, who explained that Khloé was "angry" and "fuming." Kylie understood, saying, "As she should. I'm not defending anybody, like, she should feel angry, she should feel all that. You know, we just, we just don't need to bully somebody is all I'm saying." Kylie then told Kim that Woods looked extremely upset when she visited Kylie's house to pick up the rest of her belongings. "She got her things, and she came in, and just, like, the look in her eyes, like, she's just obviously really going through it," said Kylie through tears. "I just don't think anyone deserves this. Let's just express everything to each other in person, however we feel." Story continues Regardless, it was a tough situation for everyone involved, as the rest of the episode played out Woods's notorious sit-down interview with Jada Pinkett Smith for Red Table Talk earlier this year. "My world got destroyed, while Jordyn is doing press interviews about it? Who the f* do you think you are," said Khloé. "She can't call me to apologize? Not one time. She never called me one time after the Tuesday when she admitted what she did. But you can go and do a sit-down interview? Like, that blows my mind." Keeping Up With the Kardashians airs Sundays at 9 p.m. on E! Check out the Kardashian-Jenner familys reactions to the news of Tristan and Jordyns cheating scandal: Read more from Yahoo! Entertainment: Bethenny Frankel in tears over near-death experience Nicki Minaj reveals why she got fired from Red Lobster Kourtney Kardashian says Kylie Jenner acts entitled since becoming a billionaire Tell us what you think! Hit us up on Twitter , Facebook or Instagram , or leave your comments below. And check out our host, Kylie Mar, on Twitter , Facebook or Instagram . Want daily pop culture news delivered to your inbox? Sign up here for Yahoo Entertainment & Lifestyle's newsletter.
Is PWR Holdings Limited (ASX:PWH) A Smart Choice For Dividend Investors? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Could PWR Holdings Limited (ASX:PWH) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. If you are hoping to live on the income from dividends, it's important to be a lot more stringent with your investments than the average punter. Some readers mightn't know much about PWR Holdings's 1.9% dividend, as it has only been paying distributions for the last three years. A low dividend might not be a bad thing, if the company is reinvesting heavily and growing its sales and profits. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below. Click the interactive chart for our full dividend analysis Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. Looking at the data, we can see that 65% of PWR Holdings's profits were paid out as dividends in the last 12 months. This is a healthy payout ratio, and while it does limit the amount of earnings that can be reinvested in the business, there is also some room to lift the payout ratio over time. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. PWR Holdings paid out 97% of its free cash last year. Cash flows can be lumpy, but this dividend was not well covered by cash flow. PWR Holdings paid out less in dividends than it reported in profits, but unfortunately it didn't generate enough free cash flow to cover the dividend. Cash is king, as they say, and were PWR Holdings to repeatedly pay dividends that aren't well covered by cashflow, we would consider this a warning sign. Remember, you can always get a snapshot of PWR Holdings's latest financial position,by checking our visualisation of its financial health. One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. The dividend has not fluctuated much, but with a relatively short payment history, we can't be sure this is sustainable across a full market cycle. During the past three-year period, the first annual payment was AU$0.012 in 2016, compared to AU$0.078 last year. Dividends per share have grown at approximately 85% per year over this time. We're not overly excited about the relatively short history of dividend payments, however the dividend is growing at a nice rate and we might take a closer look. Examining whether the dividend is affordable and stable is important. However, it's also important to assess if earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. It's good to see PWR Holdings has been growing its earnings per share at 28% a year over the past 5 years. With recent, rapid earnings per share growth and a payout ratio of 65%, this business looks like an interesting prospect if earnings are reinvested effectively. Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. First, we think PWR Holdings has an acceptable payout ratio, although its dividend was not well covered by cashflow. Next, earnings growth has been good, but unfortunately the company has not been paying dividends as long as we'd like. Ultimately, PWR Holdings comes up short on our dividend analysis. It's not that we think it is a bad company - just that there are likely more appealing dividend prospects out there on this analysis. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 3 analysts we track are forecasting for PWR Holdingsfor freewith publicanalyst estimates for the company. If you are a dividend investor, you might also want to look at ourcurated list of dividend stocks yielding above 3%. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Everything We Know About Fez on 'Euphoria' Who is Euphoria's Fez? HBO For as unique as it's already proven to be through it's early episodes, Euphoria still checks a lot of the boxes typically found in other shows of the same genre : partying, relationship drama, and drug use are all recurring themes that key plot points revolve around. Where Euphoria diverts that last one, though, is how it handles a key character involved in the drug portion of the show. Enter Fezco, or Fez for short. From the first episode of the show, Fez has been shown to be a different kind of drug dealer character: he cares about Rue, our protagonist, played by Zendaya . When we first see him, he's supportive of her recent completion of rehab, and sounds disappointed when she says that she doesn't plan on remaining clean. After a scary encounter involving Fentanyl in Episode 2, their relationship hit an apex at the ned of Episode 3, when he wouldn't allow her inside for drugs—for her own good. It's a stark difference and new ground drawn in the genre for this type of character, who most would probably picture as either a Jay (of Jay and Silent Bob fame—they were in Degrassi !) type or a more sinister type of character, like most of the drug dealers in a show like Breaking Bad. A tragic utter coincidence of Fez's character is also the fact that he bears a strong resemblance to Mac Miller, the late rapper who died from a drug overdose last fall. The resemblance was so strong that fans couldn't help but think of Miller, and wonder if the casting and character look was intentional. The actor who plays Fezco on #Euphoria looks and sounds a lot like Mac Miller I started crying watching Fez take care of Rue knowing that Mac died from a fentanyl OD. pic.twitter.com/gphoXPcfKq — Shego (@spkhp) June 24, 2019 In actuality, Fez is played by actor Angus Cloud. Euphoria is Cloud's first acting role listed on IMDB , so he's certainly found a good project to kick things off with. He graduated from Oakland School of the Arts only three years ago . Story continues There's not much more available about Cloud, but he maintains an active presence on Instagram , where he opened an account just around the time of the show's launch. He posts show promos, behind the scenes photos, and memes. Take a look at some of his posts below: You Might Also Like The Best Hair Growth Shampoos for Men to Buy Now 25 Vegetables That Are Surprising Sources of Protein
How SII (Société pour l'Informatique Industrielle) Société Anonyme (EPA:SII) Could Add Value To Your Portfolio Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Attractive stocks have exceptional fundamentals. In the case of SII (Société pour l'Informatique Industrielle) Société Anonyme (EPA:SII), there's is a company with great financial health as well as a an impressive history of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the fullreport on SII (Société pour l'Informatique Industrielle) Société Anonyme here. Over the past few years, SII has demonstrated a proven ability to generate robust returns of 20% Unsurprisingly, SII surpassed the IT industry return of 11%, which gives us more confidence of the company's capacity to drive earnings going forward. SII's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. SII appears to have made good use of debt, producing operating cash levels of 0.72x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. For SII (Société pour l'Informatique Industrielle) Société Anonyme, I've put together three fundamental aspects you should further examine: 1. Future Outlook: What are well-informed industry analysts predicting for SII’s future growth? Take a look at ourfree research report of analyst consensusfor SII’s outlook. 2. Valuation: What is SII worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? Theintrinsic value infographic in our free research reporthelps visualize whether SII is currently mispriced by the market. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of SII? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Why You Should Care About Stemmer Imaging AG’s (FRA:S9I) Low Return On Capital Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we'll evaluate Stemmer Imaging AG (FRA:S9I) to determine whether it could have potential as an investment idea. In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. First up, we'll look at what ROCE is and how we calculate it. Second, we'll look at its ROCE compared to similar companies. Finally, we'll look at how its current liabilities affect its ROCE. ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. All else being equal, a better business will have a higher ROCE. In brief, it is a useful tool, but it is not without drawbacks. Renowned investment researcher Michael Mauboussinhas suggestedthat a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'. The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Stemmer Imaging: 0.075 = €5.4m ÷ (€84m - €12m) (Based on the trailing twelve months to March 2019.) So,Stemmer Imaging has an ROCE of 7.5%. See our latest analysis for Stemmer Imaging One way to assess ROCE is to compare similar companies. In this analysis, Stemmer Imaging's ROCE appears meaningfully below the 12% average reported by the Electronic industry. This could be seen as a negative, as it suggests some competitors may be employing their capital more efficiently. Separate from how Stemmer Imaging stacks up against its industry, its ROCE in absolute terms is mediocre; relative to the returns on government bonds. Readers may find more attractive investment prospects elsewhere. We can see that , Stemmer Imaging currently has an ROCE of 7.5%, less than the 16% it reported 3 years ago. Therefore we wonder if the company is facing new headwinds. You can see in the image below how Stemmer Imaging's ROCE compares to its industry. Click to see more on past growth. Remember that this metric is backwards looking - it shows what has happened in the past, and does not accurately predict the future. ROCE can be misleading for companies in cyclical industries, with returns looking impressive during the boom times, but very weak during the busts. ROCE is only a point-in-time measure. Future performance is what matters, and you can see analyst predictions in ourfreereport on analyst forecasts for the company. Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual. To counteract this, we check if a company has high current liabilities, relative to its total assets. Stemmer Imaging has total liabilities of €12m and total assets of €84m. As a result, its current liabilities are equal to approximately 14% of its total assets. This very reasonable level of current liabilities would not boost the ROCE by much. If Stemmer Imaging continues to earn an uninspiring ROCE, there may be better places to invest. Of course,you might find a fantastic investment by looking at a few good candidates.So take a peek at thisfreelist of companies with modest (or no) debt, trading on a P/E below 20. If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Do Institutions Own SBI Life Insurance Company Limited (NSE:SBILIFE) Shares? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! If you want to know who really controls SBI Life Insurance Company Limited (NSE:SBILIFE), then you'll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that have been privatized tend to have low insider ownership. SBI Life Insurance has a market capitalization of ₹723b, so it's too big to fly under the radar. We'd expect to see both institutions and retail investors owning a portion of the company. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholder can tell us about SBILIFE. See our latest analysis for SBI Life Insurance Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. SBI Life Insurance already has institutions on the share registry. Indeed, they own 11% of the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see SBI Life Insurance's historic earnings and revenue, below, but keep in mind there's always more to the story. We note that hedge funds don't have a meaningful investment in SBI Life Insurance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our most recent data indicates that insiders own less than 1% of SBI Life Insurance Company Limited. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own ₹579k of stock. In this sort of situation, it can be more interesting tosee if those insiders have been buying or selling. With a 20% ownership, the general public have some degree of sway over SBILIFE. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. It appears to us that public companies own 67% of SBILIFE. We can't be certain, but this is quite possible this is a strategic stake. The businesses may be similar, or work together. While it is well worth considering the different groups that own a company, there are other factors that are even more important. I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow, for free. Ultimatelythe future is most important. You can access thisfreereport on analyst forecasts for the company. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
What Does SBI Life Insurance Company Limited's (NSE:SBILIFE) P/E Ratio Tell You? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! This article is written for those who want to get better at using price to earnings ratios (P/E ratios). We'll apply a basic P/E ratio analysis to SBI Life Insurance Company Limited's (NSE:SBILIFE), to help you decide if the stock is worth further research. Looking at earnings over the last twelve months,SBI Life Insurance has a P/E ratio of 54.51. That means that at current prices, buyers pay ₹54.51 for every ₹1 in trailing yearly profits. View our latest analysis for SBI Life Insurance Theformula for P/Eis: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for SBI Life Insurance: P/E of 54.51 = ₹723.35 ÷ ₹13.27 (Based on the trailing twelve months to March 2019.) A higher P/E ratio implies that investors paya higher pricefor the earning power of the business. That is not a good or a bad thingper se, but a high P/E does imply buyers are optimistic about the future. Probably the most important factor in determining what P/E a company trades on is the earnings growth. If earnings are growing quickly, then the 'E' in the equation will increase faster than it would otherwise. That means unless the share price increases, the P/E will reduce in a few years. A lower P/E should indicate the stock is cheap relative to others -- and that may attract buyers. SBI Life Insurance increased earnings per share by an impressive 15% over the last twelve months. And earnings per share have improved by 13% annually, over the last five years. This could arguably justify a relatively high P/E ratio. The P/E ratio essentially measures market expectations of a company. As you can see below, SBI Life Insurance has a higher P/E than the average company (42.6) in the insurance industry. That means that the market expects SBI Life Insurance will outperform other companies in its industry. Shareholders are clearly optimistic, but the future is always uncertain. So investors should delve deeper. I like to checkif company insiders have been buying or selling. One drawback of using a P/E ratio is that it considers market capitalization, but not the balance sheet. Thus, the metric does not reflect cash or debt held by the company. In theory, a company can lower its future P/E ratio by using cash or debt to invest in growth. Such spending might be good or bad, overall, but the key point here is that you need to look at debt to understand the P/E ratio in context. Since SBI Life Insurance holds net cash of ₹24b, it can spend on growth, justifying a higher P/E ratio than otherwise. SBI Life Insurance's P/E is 54.5 which suggests the market is more focussed on the future opportunity rather than the current level of earnings. Its net cash position supports a higher P/E ratio, as does its solid recent earnings growth. Therefore it seems reasonable that the market would have relatively high expectations of the company Investors have an opportunity when market expectations about a stock are wrong. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' So thisfreevisualization of the analyst consensus on future earningscould help you make theright decisionabout whether to buy, sell, or hold. But note:SBI Life Insurance may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with strong recent earnings growth (and a P/E ratio below 20). We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Deeply divided, EU leaders halt talks after no deal on top jobs By Belén Carreño, Richard Lough and Gabriela Baczynska BRUSSELS (Reuters) - EU leaders suspended a summit on Monday after they failed to agree who should fill the bloc's top jobs, with divisions over the marquee role of European Commission president as entrenched as ever after some 20 hours of talks. France, Germany and Spain proposed Dutch socialist Frans Timmermans as the next head of the European Union executive, but as diplomats signaled he was close to getting the nod, Italy and eastern European nations turned him down. The inability to reach agreement in negotiations that ran through the night reflects the bloc's deepening political fragmentation and underlined problems that have grown as the bloc has expanded in reaching a common position on issues from migration to climate change. It prompted an angry response from French President Emmanuel Macron who returned to Paris shortly after the talks were abruptly called off until Tuesday morning, branding the breakdown a "failure". "It's a very bad image for both the European Council and for Europe," Macron told reporters. Spanish Prime Minister Pedro Sanchez said he felt "enormous frustration" at the absence of a deal. While mathematically Timmermans had the support to secure the nomination, there was concern the scale of opposition would make for too toxic a political mix for the bloc to digest, officials and diplomats said. It is highly unusual for summit talks to run into a third day, and the current negotiations mark what is already the third attempt to fill the post of Commission president for the next five years, along with four other senior roles including European Central Bank head. Macron said there could be no further EU enlargement without reforms that permitted it to function smoothly, in comments marking a potential major setback for the membership hopes of North Macedonia, Albania and other Balkan states. THE WANING OF MERKEL Story continues Timmermans' nomination was also deeply unpopular with the center-right leaders sitting with the European People's Party (EPP) group. The EPP has the most lawmakers in the European Parliament but, following a continent-wide election in May that left the legislature fragmented, lacks the majority it would have needed to push through its candidate for Commission head, German conservative Manfred Weber. The EPP rebellion underlined how weakened German Chancellor Angela Merkel, whose Christian Democrat party belongs to the EPP group but who had agreed to support the Dutchman as a compromise candidate, has become as she prepares to hand over to her successor. Merkel was more conciliatory than Macron, saying the EU's biggest members could not ignore the views of its smaller nations. "To vote against the whole (Visegrad) group and then a country like Italy, that would be really difficult," Merkel told a news conference in Brussels after the talks were suspended. The Visegrad group comprises ex-communist countries Hungary, Poland, the Czech Republic, and Slovakia. The first two have clashed with Timmermans over enforcement of the rule of law in Europe, part of the Dutchman's brief in his current role as Commission deputy head. Merkel and Estonian Prime Minister Juri Ratas voiced concerns that having a divisive figure at the head of the bloc's executive would risk exacerbating EU divisions. Rifts between the wealthier west and less affluent east and south including on whether to tighten the bloc's economic cooperation, deepen defense ties or pool border resources, have already weakened the EU. Fights over how to tackle immigration and climate change have hurt EU states' trust in each other too. "Timmermans will not fly, it's very hard to see that his candidacy could survive against opposition from Poland, Italy and Hungary," one European diplomat said. "Five EPP leaders said they see no reason to give the Commission presidency to a socialist... It is all open." 'UNBELIEVABLY COMPLICATED' The summit also needs to agree on who leads the European Council, which represents member states in Brussels and defines the EU's broad political direction, the European Parliament president and the bloc's foreign affairs chief, as well as the head of the ECB. The new Parliament is due to elect its president on Wednesday, so national leaders must seal a deal on Tuesday if they want to get ahead of the assembly. As the leaders tried to finalize the deal, the EPP's Kristalina Georgieva and Belgian Prime Minister Charles Michel, a liberal, were linked to the Council post. But Bulgarian Prime Minister Boyko Borissov later ruled Georgieva out, saying she was a candidate for Commission chief. Other names discussed in marathon talks that resembled late-night sessions at the height of the Greek debt crisis - when the future of the euro currency zone was at stake - included Spain's Josep Borrell or France's Michel Barnier. While Dutch Prime Minister Mark Rutte acknowledged the scale of the problem - "It's just unbelievably complicated. You have so many political factions," he said - Czech Prime Minister Andrej Babis said some of his colleagues had dozed off around the table. To be appointed Commission president, a candidate needs the support of at least 72% of the 28 member states, who must represent at least 65% of the bloc's population. Getting five names agreed is crucial for the EU's standing and more delays would provide fodder for anti-establishment nationalists who say it is out of touch with its citizens, divided and dysfunctional. (Alissa de Carbonnel, Foo Yun Chee, Peter Maushagen, Andreas Rinke, Alexandra Regida, Robin Emmott, Richard Lough, Belen Carreno, Gabriela Baczynska, Jean-Baptiste Vey in Brussels, Toby Sterling in Amsterdam, Francesca Piscioneri in Rome, Tsvetelia Tsolova in Sofia, Editing by John Stonestreet)
Should You Investigate G5 Entertainment AB (publ) (STO:G5EN) At kr89.90? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! G5 Entertainment AB (publ) (STO:G5EN), which is in the entertainment business, and is based in Sweden, saw significant share price movement during recent months on the OM, rising to highs of SEK111 and falling to the lows of SEK84.55. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether G5 Entertainment's current trading price of SEK89.9 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at G5 Entertainment’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View our latest analysis for G5 Entertainment Great news for investors – G5 Entertainment is still trading at a fairly cheap price. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that G5 Entertainment’s ratio of 6.67x is below its peer average of 31.63x, which suggests the stock is undervalued compared to the Entertainment industry. Although, there may be another chance to buy again in the future. This is because G5 Entertainment’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity. Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. G5 Entertainment’s earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value. Are you a shareholder?Since G5EN is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation. Are you a potential investor?If you’ve been keeping an eye on G5EN for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy G5EN. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision. Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on G5 Entertainment. You can find everything you need to know about G5 Entertainment inthe latest infographic research report. If you are no longer interested in G5 Entertainment, you can use our free platform to see my list of over50 other stocks with a high growth potential. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Taylor Swift’s Ex-Label Boss Disputes Her Claims About Scooter Braun and Masters Deal On Sunday, June 30, Taylor Swift penned a scathing letter about music manager Scooter Braun following the news that his company, Ithaca Holdings LLC, had purchased her back catalog from her former label Big Machine Label Group. “All I could think about was the incessant, manipulative bullying I’ve received at his hands for years,” she wrote, referring to past experiences with Braun and his former client Kanye West (particularly the song “ Famous ” and its video ). “This is my worst case scenario,” she wrote. Late Sunday, Big Machine Label Group CEO Scott Borchetta posted an open letter on the label’s website disputing multiple points made by Swift. "So, it’s time for some truth...” is the title. In her post, Swift claimed that any time she said Braun’s name in front of Borchetta, “it was when I was either crying or trying not to.” Borchetta responded, “I certainly never experienced that.” He also characterized Braun as someone who supported Swift’s career. Scooter was never anything but positive about Taylor. He called me directly about Manchester to see if Taylor would participate (she declined). He called me directly to see if Taylor wanted to participate in the Parkland March (she declined). Scooter has always been and will continue to be a supporter and honest custodian for Taylor and her music. The note features a document that allegedly outlines the label’s final offer for Swift to acquire her masters. Borchetta claims that Swift was given an offer that would have given her all the masters immediately upon re-signing with the label. Swift opened her post by writing that she “pleaded” with the label to own her masters. “Instead I was given an opportunity to sign back up to Big Machine Records and ‘earn’ one album back at a time, one for every new one I turned in.” While Borchetta didn’t elaborate on the details of the offer, he wrote, “Taylor had every chance in the world to own not just her master recordings, but every video, photograph, everything associated to her career. She chose to leave.” Story continues Borchetta also expressed doubt about Swift’s claim that she learned of Braun’s purchase “as it was announced to the world,” saying he personally texted her the news before it was announced. I guess it might somehow be possible that her dad Scott, 13 Management lawyer Jay Schaudies (who represented Scott Swift on the shareholder calls) or 13 Management executive and Big Machine LLC shareholder Frank Bell (who was on the shareholder calls) didn’t say anything to Taylor over the prior 5 days. I guess it’s possible that she might not have seen my text. But, I truly doubt that she “woke up to the news when everyone else did.” Following Borchetta’s letter, a representative for Swift reiterated to People that she was not notified prior to the announcement: “Taylor found out from the news articles when she woke up before seeing any text from Scott Borchetta and he did not call her in advance.” Scooter Braun’s client Justin Bieber and wife Yael Cohen Braun have rushed to his defense in response to Swift. Pitchfork has reached out to Swift’s representative for comment. Originally Appeared on Pitchfork
What Kind Of Share Price Volatility Should You Expect For G5 Entertainment AB (publ) (STO:G5EN)? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! If you own shares in G5 Entertainment AB (publ) (STO:G5EN) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. In finance, Beta is a measure of volatility. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. First, we have company specific volatility, which is the price gyrations of an individual stock. Holding at least 8 stocks can reduce this kind of risk across a portfolio. The second sort is caused by the natural volatility of markets, overall. For example, certain macroeconomic events will impact (virtually) all stocks on the market. Some stocks see their prices move in concert with the market. Others tend towards stronger, gentler or unrelated price movements. Beta is a widely used metric to measure a stock's exposure to market risk (volatility). Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful. The first thing to understand about beta is that the beta of the overall market is one. Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market. Check out our latest analysis for G5 Entertainment Given that it has a beta of 1.47, we can surmise that the G5 Entertainment share price has been fairly sensitive to market volatility (over the last 5 years). If this beta value holds true in the future, G5 Entertainment shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. Share price volatility is well worth considering, but most long term investors consider the history of revenue and earnings growth to be more important. Take a look at how G5 Entertainment fares in that regard, below. With a market capitalisation of kr808m, G5 Entertainment is a very small company by global standards. It is quite likely to be unknown to most investors. Relatively few investors can influence the price of a smaller company, compared to a large company. This could explain the high beta value, in this case. Since G5 Entertainment tends to moves up when the market is going up, and down when it's going down, potential investors may wish to reflect on the overall market, when considering the stock. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as G5 Entertainment’s financial health and performance track record. I urge you to continue your research by taking a look at the following: 1. Future Outlook: What are well-informed industry analysts predicting for G5EN’s future growth? Take a look at ourfree research report of analyst consensusfor G5EN’s outlook. 2. Past Track Record: Has G5EN been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look atthe free visual representations of G5EN's historicalsfor more clarity. 3. Other Interesting Stocks: It's worth checking to see how G5EN measures up against other companies on valuation. You could start with thisfree list of prospective options. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Should You Be Impressed By International Consolidated Airlines Group, S.A.'s (LON:IAG) ROE? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). By way of learning-by-doing, we'll look at ROE to gain a better understanding of International Consolidated Airlines Group, S.A. (LON:IAG). International Consolidated Airlines Group has a ROE of 32%, based on the last twelve months. Another way to think of that is that for every £1 worth of equity in the company, it was able to earn £0.32. Check out our latest analysis for International Consolidated Airlines Group Theformula for return on equityis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for International Consolidated Airlines Group: 32% = €2.2b ÷ €6.7b (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. It is all the money paid into the company from shareholders, plus any earnings retained. Shareholders' equity can be calculated by subtracting the total liabilities of the company from the total assets of the company. Return on Equity measures a company's profitability against the profit it has kept for the business (plus any capital injections). The 'return' is the profit over the last twelve months. That means that the higher the ROE, the more profitable the company is. So, all else equal,investors should like a high ROE. That means ROE can be used to compare two businesses. Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. As you can see in the graphic below, International Consolidated Airlines Group has a higher ROE than the average (22%) in the Airlines industry. That is a good sign. In my book, a high ROE almost always warrants a closer look. One data point to check is ifinsiders have bought shares recently. Most companies need money -- from somewhere -- to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking. International Consolidated Airlines Group clearly uses a significant amount of debt to boost returns, as it has a debt to equity ratio of 1.12. While the ROE is impressive, that metric has clearly benefited from the company's use of debt. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time. Return on equity is useful for comparing the quality of different businesses. In my book the highest quality companies have high return on equity, despite low debt. If two companies have the same ROE, then I would generally prefer the one with less debt. But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So I think it may be worth checking thisfreereport on analyst forecasts for the company. But note:International Consolidated Airlines Group may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Sensex, Nifty settle higher on trade reprieve; financials boost BENGALURU (Reuters) - Indian shares closed higher on Monday, in line with broader Asian peers after Washington and Beijing agreed to restart trade talks, boosting risk appetite. While reports of an agreement had been flagged ahead of U.S. President Donald Trump and his Chinese counterparty Xi Jinping's meeting on the sidelines of the G20 meeting, the outcome was more positive than investors had expected. Trump said he would hold back on new tariffs and that China will buy more farm products. The broader NSE Nifty closed 0.65% higher at 11,865.60, while the benchmark BSE Sensex settled 0.74% firmer at 39,686.50. Indiabulls Housing Finance settled 2.3% higher, while Housing Development Finance Corp Ltd clocked its record closing high. (Reporting by Chandini Monnappa in Bengaluru, Editing by Sherry Jacob-Phillips)
Should You Worry About Hotel Chocolat Group Plc's (LON:HOTC) CEO Pay Cheque? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Angus Thirlwell is the CEO of Hotel Chocolat Group Plc (LON:HOTC). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels. View our latest analysis for Hotel Chocolat Group At the time of writing our data says that Hotel Chocolat Group Plc has a market cap of UK£379m, and is paying total annual CEO compensation of UK£241k. (This number is for the twelve months until July 2018). Notably, the salary of UK£235k is the vast majority of the CEO compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£157m to UK£630m. The median total CEO compensation was UK£682k. This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion. The graphic below shows how CEO compensation at Hotel Chocolat Group has changed from year to year. On average over the last three years, Hotel Chocolat Group Plc has grown earnings per share (EPS) by 34% each year (using a line of best fit). It achieved revenue growth of 9.6% over the last year. This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. You might want to checkthis free visual report onanalyst forecastsfor future earnings. Boasting a total shareholder return of 99% over three years, Hotel Chocolat Group Plc has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size. Hotel Chocolat Group Plc is currently paying its CEO below what is normal for companies of its size. Many would consider this to indicate that the pay is modest since the business is growing. The strong history of shareholder returns might even have some thinking that Angus Thirlwell deserves a raise! It is relatively rare to see a modestly paid CEO when performance is so impressive. The cherry on top would be if company insiders are buying shares with their own money. CEO compensation is one thing, but it is also interesting tocheck if the CEO is buying or selling Hotel Chocolat Group (free visualization of insider trades). Important note:Hotel Chocolat Group may not be the best stock to buy. You might find somethingbetterinthis list of interesting companies with high ROE and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Newcastle's stunning homes show why Geordies are sure they live in the best city Grey's Monument in the city of Newcastle, UK. Photo: Richard Gray/EMPICS Entertainment There are few, if any, folk prouder of their home towns than Geordies. Newcastle locals are known for their warmth, passion, and no-nonsense style—especially when it comes to nights out on the tiles. The historic city dates back to Roman times. In more recent centuries it has been an industrial hub, one of the jewels in the crown of the British Empire, its glorious Georgian and Victorian architecture a constant reminder of Newcastle’s grand past. Today, it’s still a thriving and popular city, the cultural hub of the north east, and possibly even the whole of the north, though that’s a debate for another day. From its iconic Tyne Bridge to the home of Newcastle F.C. at St. James’s Park to the Baltic Centre for Contemporary Art to the Metro Centre—Newcastle has it all. What’s more, it has some of the most beautiful homes on offer in the property market right now. Here are some of the crème de la crème of Newcastle property. Photo: Pat Robson Estate Agents City Centre: £450,000 Atop a converted Edwardian tobacco warehouse just a stone’s throw from Newcastle Central station is this large, modern four bedroom penthouse recently refurbished to breathe new life into an old building. The property benefits from a rooftop conservatory and a vast private terrace offering views over the city. Its location could not be more perfect for those wanting access to the best of Newcastle’s nightlife. On at £450,000 with the agent Pat Robson, the penthouse is a steal. Photo: Rare by Sanderson Young Estate Agents Jesmond: £825,000 In desirable Jesmond is this stunning Grade II-listed five-storey, five bedroom Georgian town house. The property has undergone a full renovation internally, creating modern spaces throughout, but retaining a couple of the best bits about the old home, including glorious sash windows and a big stone fireplace. This property is just a short walk from both of the city's universities and is right on the edge of the city centre, too. This piece of Newcastle history is yours if you want it through Sanderson Young for £825,000. Story continues Photo: Rare by Sanderson Young Estate Agents Gosforth: £1,500,000 Rogsill is a magnificent three-storey Victorian family home packed with period features such as handsome fireplaces, high ceilings, and refined plasterwork, among other delights. There are six good-sized bedrooms, a south-facing garden, long pebbled driveway, and a large garage which is a converted stable that retains a hayloft, making it a great space for a studio or office. Though some modernisation of the property is required, it has the potential to become one of Newcastle’s trophy homes. It’s listed with Sanderson Young for a £1,500,000 guide price. Photo: Rare by Sanderson Young Estate Agents Darras Hall: £1,950,000 Just outside of Newcastle, but within a short driving distance and close to the international airport, is this stunning contemporary four bedroom detached house with sleek interior design, a leisure wing equipped with a swimming pool, and stylishly landscaped grounds. The property is modern and luxurious, and it’s yours through Sanderson Young for £1,950,000. Photo: Rare by Sanderson Young Estate Agents Jesmond: £2,950,000 Within upmarket Jesmond is this vast and elegant detached Edwardian home, called Nook House, lavished with period features such as large bay windows, wood-panelling, and magnificent entrance hall. There are six generously-proportioned bedrooms. It is a truly remarkable and grand family home on the market for £2,950,000 with Sanderson Young.
Irish startup Nuritas expects to discover five new drugs using AI by 2021 The startups drug discovery process uses machine learning, resulting in a 60% success rate. Photo: Getty An Irish startup that made the first discovery of a healthcare ingredient using artificial intelligence (AI) says that it could discover a further four within the next 18 months. Nuritas, which has raised $65m (£51m) from a series of high-profile investors like Salesforce founder Marc Benioff and U2’s Bono and the Edge, said that its machine learning drug discovery process now had a 60% success rate — far higher than the rest of the pharmaceutical industry. The first ingredient it discovered, which helps treat inflammation, is expected to hit the market in a variety of sports nutrition products by the end of 2019, CEO Emmet Browne told Yahoo Finance UK. “We believe not only that we have launched the only healthcare ingredient found through AI, but we will in fact launch the second, third, fourth, and fifth within a 12–18 month period as well,” Browne said in an interview. The first ingredient was discovered in collaboration with German chemical giant BASF ( BAS.DE ) in the space of two years. Nuritas noted that, for BASF, the discovery of such an ingredient usually takes between five and seven years, and typically costs around $35m. “To have something in market that quickly is just exceedingly disruptive by comparison to what's normally the case with that particular arena,” Browne said. Nuritas uses a three-stage process to discover new healthcare ingredients. It first identifies a range of possibilities before using machine learning to narrow them down. Around 60% of those identified will show the necessary bioactive activity, Browne said. “In effect, what we do is use artificial intelligence to unlock nature's secrets. That’s the depth of it.” “Nature carries an exhaustible reserve of bioactive opportunities,” Browne said, noting that the “vastness has until now made it relatively impenetrable to the 20th century process of discovery.” Founded in 2014 by Dr Nora Khaldi, an Irish-Algerian scientist, Nuritas has also raised money from serial entrepreneur Ali Partovi, who was an early advisor to Dropbox, and the European Investment Bank. The company is also a founding member of the Alliance for Artificial Intelligence in Healthcare, a coalition of tech experts, pharmaceutical companies, and research organisations that advocates the use of artificial intelligence and machine learning to improve the quality of care provided to patients.
These are the most searched for jobs in the world in 2019 Teaching assistant is one of the most searched for jobs in the UK and the world right now. Photo: Nicole Honeywill/Unsplash There were well over 10 million specific job searches made via Google over the last 12 months but which jobs are the most searched for? And, which countries are searching for them? Analysis of 12 months of Google search data, by supplies retailer Brother UK , has revealed the most popular jobs from each country in the world. Great Britain Brits are keen to teach, with over 288,000 people searching Google for teaching assistant jobs in the last 12 months, the data shows. Teaching assistant came out top for England, Scotland and Wales, however, was pipped to the post by nursing in Northern Ireland. Following on, estate agent is the second most-googled job in the UK, with 105,700 searches, followed by project manager with 99,300 and prison officer with 98,400. READ MORE: UK jobs with fastest-rising pay of 2019 And with Instagram more popular than ever before, photography jobs have also skyrocketed in popularity. In fact, there were more than 81,000 searches in the last 12 months, suggesting the nation is keen to snap some shots. When it comes to industries, jobs in the public sector were notably high, with social work, counselling, and nursing all appearing in the top 10. It seems the UK has high demand for these jobs, too, with secondary education teaching professionals, social workers and nurses all appearing on the UKs shortage occupation list. Britains most Googled jobs from the last 12 months: Teaching assistant (288,400) Estate agent (105,700) Project manager (99,300) Prison officer (98.400) Accountant (88,800) Social worker (85,500) Councillor (82,500) Photographer (81,000) Graphic designer (74,700) Europe While UK is searching for careers in the classroom, translator won the title of most-googled job in all of Europe, with most searches coming from Spain. If you do bag a job as a translator in Spain, you can expect to earn approximately 19,715 (£17,645) a year. Visual merchandising came a close second, with more than 10,000 searches for these roles coming from Germany. Story continues READ MORE: 15 high-paying jobs for creative people Interestingly, German Glassdoor users voted IKEA as the best company to work for in this field. Surprisingly, the term music jobs came in third place most popular in Italy, where it was the most-google job sector overall. The music industry is thriving over 1.4bn (£1.3bn) of revenue from concerts, dance activities and musical performances represent almost half the value of Italys creative industry, according to the latest Italia Creativa report. Worldwide Combining all the countries from around the globe, mechanical engineering tops the charts. With education in science, technology, engineering, and mathematics (STEM) becoming increasingly desirable, the profession racked up almost a million searches in the past year most coming from India. In India, on average, a mechanical engineer will be paid Rs 340,000 a year equivalent to £3,663. READ MORE: The 10 most attractive employers for engineering students While the cost of living is much higher in the UK, mechanical engineers can expect to make around £30,449 a year, according to figures from PayScale. The Philippines, Saudi Arabia, Bangladesh, Lebanon and Ethiopia are also on the search for mechanical engineering jobs, the data shows. Meanwhile, accounting came a close second for the most-googled job, with almost half a million searches in the US and Canada alone. READ MORE: These are the unhappiest workers in the UK And teaching assistant made the top three driven by searches from the UK and Ireland, along with social work, which came in seventh place. The most Googled jobs in the world: Mechanical engineering (511,440) Accountant (406,920) Teaching assistant (274,560) Chemical engineering (52,800) Civil engineering (37,800) Graphic designer (32,840) Social worker (23,880)
Dior to Open Temporary Champs-Elysées Store on July 15 Click here to read the full article. FACE OFF: The Dior flagship on Avenue Montaigne is about to close for renovations, but the facade of the building will travel: a reproduction of the historic headquarters will be superimposed on its new temporary boutique on Avenue des Champs-Elysées, opening on July 15. The trompe loeil image, which lifts up at the corner like a page being turned, also went up on an advertising billboard on Place de la Concorde in Paris on Monday. Related stories Safilo Group Confirms Dior License Expiration, Closes Solstice Sale But Shares Slump Fashionphile Aims to Play With Luxury's Heavy Hitters Paris Couture Seeks New Blood as Business Booms The Dior store, located next to the Publicis Drugstore and across the road from Cartier , opens at a troubled time for the Champs-Elysées, which has been repeatedly closed to traffic and public transport since the gilets jaunes , or yellow vests, protests started last November. The Avenue Montaigne boutique will close shortly before the Champs-Elysées store opens its doors, a spokeswoman for the brand said. The new boutique at 30 Avenue Montaigne, a building which also houses offices and the brands haute couture ateliers, is expected to reopen in 2020. Sign up for WWD's Newsletter . For the latest news, follow us on Twitter , Facebook , and Instagram .
Why Clarkson PLC's (LON:CKN) High P/E Ratio Isn't Necessarily A Bad Thing Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. We'll show how you can use Clarkson PLC's ( LON:CKN ) P/E ratio to inform your assessment of the investment opportunity. What is Clarkson's P/E ratio? Well, based on the last twelve months it is 25.39. In other words, at today's prices, investors are paying £25.39 for every £1 in prior year profit. Check out our latest analysis for Clarkson How Do You Calculate A P/E Ratio? The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Clarkson: P/E of 25.39 = £25.1 ÷ £0.99 (Based on the trailing twelve months to December 2018.) Is A High Price-to-Earnings Ratio Good? A higher P/E ratio means that buyers have to pay a higher price for each £1 the company has earned over the last year. That isn't a good or a bad thing on its own, but a high P/E means that buyers have a higher opinion of the business's prospects, relative to stocks with a lower P/E. How Growth Rates Impact P/E Ratios Generally speaking the rate of earnings growth has a profound impact on a company's P/E multiple. Earnings growth means that in the future the 'E' will be higher. Therefore, even if you pay a high multiple of earnings now, that multiple will become lower in the future. A lower P/E should indicate the stock is cheap relative to others -- and that may attract buyers. Clarkson's earnings per share fell by 5.3% in the last twelve months. But it has grown its earnings per share by 3.8% per year over the last five years. Does Clarkson Have A Relatively High Or Low P/E For Its Industry? We can get an indication of market expectations by looking at the P/E ratio. As you can see below, Clarkson has a higher P/E than the average company (12.3) in the shipping industry. Story continues LSE:CKN Price Estimation Relative to Market, July 1st 2019 That means that the market expects Clarkson will outperform other companies in its industry. Clearly the market expects growth, but it isn't guaranteed. So further research is always essential. I often monitor director buying and selling . Remember: P/E Ratios Don't Consider The Balance Sheet The 'Price' in P/E reflects the market capitalization of the company. In other words, it does not consider any debt or cash that the company may have on the balance sheet. The exact same company would hypothetically deserve a higher P/E ratio if it had a strong balance sheet, than if it had a weak one with lots of debt, because a cashed up company can spend on growth. Such spending might be good or bad, overall, but the key point here is that you need to look at debt to understand the P/E ratio in context. Clarkson's Balance Sheet With net cash of UK£166m, Clarkson has a very strong balance sheet, which may be important for its business. Having said that, at 22% of its market capitalization the cash hoard would contribute towards a higher P/E ratio. The Verdict On Clarkson's P/E Ratio Clarkson's P/E is 25.4 which is above average (16.4) in the GB market. The recent drop in earnings per share would make some investors cautious, but the relatively strong balance sheet will allow the company time to invest in growth. Clearly, the high P/E indicates shareholders think it will! Investors should be looking to buy stocks that the market is wrong about. People often underestimate remarkable growth -- so investors can make money when fast growth is not fully appreciated. So this free visualization of the analyst consensus on future earnings could help you make the right decision about whether to buy, sell, or hold. You might be able to find a better buy than Clarkson. If you want a selection of possible winners, check out this free list of interesting companies that trade on a P/E below 20 (but have proven they can grow earnings). We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Google internet balloon spinoff Loon still looking for its wings By Paresh Dave SAN FRANCISCO (Reuters) - Google's bet on balloons to deliver cell service soon faces a crucial test amid doubts about the viability of the technology by some potential customers. The company behind the effort, Loon says its balloons will reach Kenya in the coming weeks for its first commercial trial. The test with Telkom Kenya, the nation's No. 3 carrier, will let mountain villagers buy 4G service at market-rate prices for an undefined period. Kenya's aviation authority said its final approval would be signed this month. Hatched in 2011, Loon aims to bring connectivity to remote parts of the world by floating solar-powered networking gear over areas where cell towers would be too expensive to build. Its tennis-court-sized helium balloons have demonstrated utility. Over the last three years, Loon successfully let wireless carriers in Peru and Puerto Rico use balloons for free to supplant cell phone towers downed by natural disasters. Kenyan officials are enthusiastic as they try to bring more citizens online. But executives at five other wireless carriers courted by Loon across four continents told Reuters that Loon is not a fit currently, and may never be. Those companies, including Telkom Indonesia <TLKM.JK>, Vodafone New Zealand <IPO-VOD.NZ> and French giant Orange SA <ORAN.PA>, say Loon must demonstrate its technology is reliable, safe and profitable for carriers. Hervé Suquet, chief technology and information officer for Orange Middle East and Africa, said Loon needs to prove itself in Kenya. "If the results are positive, we would then be potentially interested," he said in a statement. Kuwait-based carrier Zain Group said it, too, is watching the Kenyan trial closely. Stakes are high for Google's parent Alphabet Inc <GOOGL.O>. It has touted a few small subsidiaries, including Loon, as being crucial to its next act: diversifying beyond ad sales. But its self-described "other bets," such as self-driving car company Waymo, generate 0.4% of revenue. Story continues Another cloud is a lawsuit alleging Google swiped a competitor's balloon ideas in 2008. A trial in federal court is slated to begin August 2 in San Jose, California. If it loses, Loon would pay jury-determined damages to Chandler, Arizona-based Space Data, which sells communications balloons to the U.S. military. Loon said it will "vigorously defend" itself. Alastair Westgarth, chief executive of the Alphabet subsidiary officially formed last July, expressed confidence in its strategy. "Multiple" additional entities are close to signing contracts with Loon, he said. The company's workforce has tripled to over 200 employees in the last year. Loon also attracted outside funding. An arm of Japanese telecoms firm SoftBank Corp <9434.T> developing internet drones invested $125 million as part of a partnership this year. It has accelerated Loon's previously unreported interest in industrial applications, such as serving farms and off-shore oil wells. "With years of technical development, over 35 million kilometers flown, and hundreds of thousands of people connected, we have a big head start and are well positioned to connect a lot of people and seize the opportunities that come with it," Westgarth said in a statement. INDUSTRY FLIGHT Loon decided to partner with carriers, three former Google executives said, after finding that operating its own network risked blowback from telecom companies, shareholders and activists wary of Google's influence. It aims to levy a fixed subscription charge based on the size of the coverage area, plus fees linked to data usage. But some prospective telecoms clients have balked, preferring to pay based on the number of subscribers, according to one of the carrier executives and one of the former Google executives. Others are wary of technical limitations. A virtual chain of six balloons can supply 4G to thousands of devices over an area nearly as large as Puerto Rico. But users can lose connections if winds push balloons astray. Their solar-powered gear needs abundant year-round sunshine, leaving chunks of the United States, Europe, China and southernmost South America and Africa off limits. And using balloons too close to cities could jam other communications. In addition, the balloons each cost tens of thousands of dollars and must be replaced every five months as their plastic shells degrade. Loon declined to comment on costs, but said it is continuing to improve coverage and longevity. STUMBLE IN INDONESIA The company also has faced political and cultural headwinds. In 2015, it invited officials from Indonesia to Google's headquarters to announce trials in the world's fourth most populous country. Its 268 million people are spread over thousands of islands, making traditional coverage challenging. But four years on, Loon is still awaiting final approval to test there. It stumbled early by serving pork sandwiches to its Muslim guests during the 2015 Silicon Valley visit, according to a person familiar with the proceedings. Loon said it accommodated dietary restrictions and scheduled prayer time for guests. Back in Indonesia, rumors swirled online and in government that the balloons held surveillance cameras, which the company denied. Indonesian authorities in 2016 probed Google for alleged tax evasion, eventually agreeing to an undisclosed settlement. But the damage was done. Loon staff that year canceled an Indonesian trip over concerns about rising anti-Google sentiment, according to two people familiar with the plans. "To lobby, you have to be there to bow and respect," one of the people said. Loon "could have pushed much more." Loon said it holds frequent talks with Indonesian authorities and that last month they issued preliminary clearance. The nation's Ministry of Defense must still perform security inspections, including checking for cameras, an Indonesian official told Reuters. Meanwhile, Telkom Indonesia, the nation' No. 1 carrier, is focusing on satellites to expand coverage, David Bangun, a top executive, told Reuters. Madrid-based Telefonica <TEF.MC>, which declined to comment but has held deal talks with Loon for years, has tested alternatives such as relying on solar power to reduce the costs of remote towers. Another Latin American carrier, whose operations are vulnerable to storms, said it found an alternative for disaster resilience: It will fortify its cell towers. (Reporting by Paresh Dave; Additional reporting by Fanny Potkin and Cindy Silviana in Jakarta; Editing by Marla Dickerson)
An Intrinsic Calculation For AKWEL (EPA:AKW) Suggests It's 32% Undervalued Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! How far off is AKWEL (EPA:AKW) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by projecting its future cash flows and then discounting them to today's value. This is done using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model. View our latest analysis for AKWEL We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: [{"": "Levered FCF (\u20ac, Millions)", "2019": "\u20ac40.53", "2020": "\u20ac53.43", "2021": "\u20ac55.10", "2022": "\u20ac56.41", "2023": "\u20ac57.48", "2024": "\u20ac58.36", "2025": "\u20ac59.12", "2026": "\u20ac59.79", "2027": "\u20ac60.39", "2028": "\u20ac60.95"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x4", "2020": "Analyst x4", "2021": "Analyst x2", "2022": "Est @ 2.38%", "2023": "Est @ 1.89%", "2024": "Est @ 1.54%", "2025": "Est @ 1.3%", "2026": "Est @ 1.13%", "2027": "Est @ 1.01%", "2028": "Est @ 0.93%"}, {"": "Present Value (\u20ac, Millions) Discounted @ 9.45%", "2019": "\u20ac37.02", "2020": "\u20ac44.59", "2021": "\u20ac42.02", "2022": "\u20ac39.30", "2023": "\u20ac36.59", "2024": "\u20ac33.94", "2025": "\u20ac31.41", "2026": "\u20ac29.02", "2027": "\u20ac26.78", "2028": "\u20ac24.70"}] Present Value of 10-year Cash Flow (PVCF)= €345.38m "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (0.7%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 9.5%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = €61m × (1 + 0.7%) ÷ (9.5% – 0.7%) = €704m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €€704m ÷ ( 1 + 9.5%)10= €285.23m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is €630.61m. To get the intrinsic value per share, we divide this by the total number of shares outstanding.This results in an intrinsic value estimate of €23.59. Compared to the current share price of €16.1, the company appears quite good value at a 32% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at AKWEL as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 9.5%, which is based on a levered beta of 1.312. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Although the valuation of a company is important, it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For AKWEL, I've compiled three important factors you should further research: 1. Financial Health: Does AKW have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Future Earnings: How does AKW's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with ourfree analyst growth expectation chart. 3. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of AKW? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the EPA every day. If you want to find the calculation for other stocks justsearch here. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
India's manufacturing growth slowed in June on weaker demand - PMI By Indradip Ghosh BENGALURU (Reuters) - Growth in India's manufacturing sector slowed last month as the expansion in new orders and output eased despite factories cutting prices again, according to a private survey which also showed a decrease in the rate of hiring. The Nikkei Manufacturing Purchasing Managers' Index, compiled by IHS Markit, fell to 52.1 in June from 52.7 in May, but remained above the 50-mark that separates growth from contraction for a 23rd month. "PMI data highlighted a slight setback in the Indian manufacturing sector during June," said Pollyanna De Lima, principal economist at IHS Markit. "Gauges of factory orders, production, employment and exports remained inside growth territory, but rates of expansion softened in all cases as domestic and international demand showed some signs of fading." A sub-index tracking output prices fell to a 45-month low in June, in contraction territory for a second straight month, although the rate of increase in input prices was unchanged. Easing price pressure is likely to keep overall retail inflation in check. It hit a seven-month high in May but remained below the Reserve Bank of India's medium-term target of 4% for a 10th month. That, along with an economic slowdown, might lead to further policy easing by the RBI which last month made its third cut to interest rates this year. Optimism about output over the coming 12 months also fell, acting as a drag on job growth in the industry. "Also, a further decline in unfinished business points to excess capacity among goods producers, meaning that job creation may come to a halt in the near term should demand growth fail to revive," De Lima added. Reporting by Indradip Ghosh; Editing by Jacqueline Wong Contact Info: indradip.ghosh@thomsonreuters.com; +91 80 6749 9724
Paris Scene: What’s New for Couture Season Click here to read the full article. Paris is on fire — and that’s not just temperature-wise. From new shops, restaurants, spas and art exhibitions, the city is a hotbed of newness. Here’s a selection of where to go during this summer’s couture season. NEW LEGACY: The Hôtel Barrière Fouquet’s Paris has a new retail space, called Legacy. Set up by Bow Group and Sébastien Chapelle, who formerly headed the watches and high-tech offer at Colette, the space sells high-tech grooming tools from Dyson and Braun; exclusive watch models from labels such as Corum and Casio G-Shock; jewelry, and books by Rizzoli and Taschen. Interior decorator Jacques Garcia designed the plush space, which is tucked next to the Marta bar, with red moiré curtains and a purple carpet. — Mimosa Spencer Related stories L'Officine Universelle Buly and Louvre Team Up Delvaux Celebrates Summer With Palais Royal Cocktail Claudia Cardinale on Dancing With Alain Delon, Meeting the Pope and Being Courted by Steve McQueen Legacy 46 Avenue George V, 75008 Tel.: +33-1-40-69-60-00 Open Monday to Sunday, 9 a.m. to 8 p.m. HITTING THE TOWN: An eighth-floor rooftop bar, an arty terrace and a former train station transformed into a colorful restaurant: This couture season, Paris is teeming with exciting new spots to let off steam in between shows. After a bit of shopping at Parisian department store Galeries Lafayette, head to the eighth floor of the building to take in the spectacular panoramic view of the Opéra Garnier and the Eiffel Tower at Créatures. It’s a new bar and restaurant created by chef Julien Sebbag, who learned his craft at Israeli restaurant Miznon. The vegetarian menu at Miznon uses seasonal produce — some of it grown in the site’s vegetable garden — for its Mediterranean dishes, including zucchini focaccia, roasted cauliflower and peaches with feta, to be washed down with surprising vegetable-based cocktails. The Hôtel de Crillon is celebrating a special anniversary: The Negroni, the infamously strong gin, red vermouth and Campari cocktail, turns 100 this year. The Parisian palace has tapped artist Alexandre Benjamin Navet to create a spectacular set for the terrace of its Yacht Club bar — including a monumental cardboard yacht, inspired by the world of sailing — the perfect setting to sip one of the emblematic cocktails of “la dolce vita.” Story continues A new restaurant is adding a bit of color to the 16th arrondissement. The brightly patterned and Latin-inspired interiors of La Gare were created by hip decorator Laura Gonzalez, while Peruvian chef Gastón Acurio has taken over the restaurant’s kitchen. La Gare, which was built in a former train station, boasts two huge terraces and a fun mix of culinary inspirations, from shrimp-cilantro dim sum to crispy tacos and spicy ceviche. If you ever need an excuse to order dessert, here’s a good one: Jessica Préalpato, the head pastry chef at the Alain Ducasse restaurant at the Hôtel Plaza Athénée, has just been named The World’s Best Pastry Chef for 2019. Her concept of “desseralité” — delicious desserts based on seasonal fruit and low in sugar, wheat and cream content, such as rhubarb served with elderflower jelly or fig leaf ice cream — won over the jury. — Fleur Burlet Créatures at the Galeries Lafayette Paris Haussmann 25 Rue de la Chaussée d’Antin, 75009 Open daily, 10 a.m. to 1 a.m. The Yacht Club at the Hôtel de Crillon 6 Rue Boissy d’Anglas, 75008 Open daily, Noon to 10 p.m. La Gare 19 Chaussée de La Muette, 75016 Open daily, Noon to 2:30 p.m. and 7 to 10:30 p.m. Alain Ducasse at the Hôtel Plaza Athénée 25 Avenue Montaigne, 75008 Open Monday to Wednesday, 7:30 to 10:15 p.m.; Thursday and Friday, 12:30 to 2:15 p.m. and 7:30 to 10:15 p.m. HOTEL HAUNT: The historical Hôtel du Louvre has finally reopened after two years of renovation. The hotel, which dates back to 1855 and is now owned by Hyatt as part of its Unbound Collection, is ideally located at the intersection between its namesake museum, the Palais Royal gardens and the Opéra Garnier. Its 164 rooms and pristine white-and-gold lobby are decorated with hints of Second Empire chic, in reference to the hotel’s founder Napoleon III. — Fleur Burlet Hôtel du Louvre Place André Malraux, 75001 Tel.: +33-1-73-11-12-34 Rooms start at 450 euros PAMPERING PAUSE: On the hunt for a new spa? The EN beauty salon just officially opened its doors on the Left Bank, not far from the Place Saint-Sulpice in the 6th arrondissement. With an east-meets-west approach, this beauty institute focusing on bespoke beauty treatments was launched by Lenor Japan. It’s a sprawling, 1,670-square-foot, two-story spa with three treatment rooms. Here, the design is streamlined, mixing Japanese aesthetics and French architecture, such as rough-hewn, stone walls lining the basement level. EN’s more than 80 products were made for the spa — including essential oils, a cleansing balm and moisturizers in various textures — which are meant to be mixed according to a person’s needs. The items have formulas including extracts of organic plants grown in Japan. “We’re not trying to fit anybody into a box,” said Goh Hirose, director of EN beauty salon. The spa’s treatment menu has at its core facials, with the 85-minute Linn signature facial going for 180 euros, and the two-hour Sui deep treatment facial priced at 220 euros. On offer, too, are facials paired with reflexology and body massage. — Jennifer Weil EN Salon de Beauté 7 Rue de Condé, 75006 Tel.: +33-1-42-02-87-76 Open Tuesday to Saturday, 11 a.m. to 8 p.m. FLORENTINE FRAGRANCE FOCUS: Santa Maria Novella now has a home away from home in Paris. The Florentine fragrance seller dating from the 13th-century opened its first freestanding outpost in Paris. It’s billed as a cabinet of curiosities, located just a stone’s throw from Le Bristol Paris hotel on the tony Rue du Faubourg Saint-Honoré. In the 410-square-foot space it possible to find the brand’s full range of products, including perfumes, home fragrances, teas and infusions. The boutique’s interior decor, with its multihued marble, central table lined with scents, stately wooden-and-glass cabinets and gilded chandelier, nods to the original Santa Maria Novella apothecary in Italy. — Jennifer Weil Santa Maria Novella 61 Rue du Faubourg Saint-Honoré, 75008 Tel.: +33-1-40-07-34-12 Open Monday to Saturday, 10 a.m. to 7 p.m. MOONLIGHT: Celebrating the 50th anniversary of the first human landing on the moon, the Grand Palais is shedding light on the influence of earth’s satellite on the arts over the centuries. This thorough exhibition is a journey from antiquity through until today, and includes scientific materials. There is no better home than the Fondation Louis Vuitton for European artists Gilbert & George’s monumental charcoal on paper sculptures. The foundation’s vast rooms are also hosting several of the pair’s other works from the Seventies, offering the viewer an immersive experience, a process in which the artists were fully involved. Lights are out at the Maison Européenne de la Photographie, where there are captivating shows presenting dark atmospheres. The oeuvre of American photographer Henry Wessel’s is on view with three series of his black-and-white shots, while selected works from the museum’s permanent collection, with the likes of Robert Doisneau and Larry Clark, examine the film noir genre that conveys similar mysterious vibes. The Centre Pompidou offers an exciting opportunity to discover Dora Maar’s fascinating career, emphasizing that she was more than just Pablo Picasso’s lover. The retrospective devoted to the prolific photographer and painter comprises nearly 400 works, and relegates her muse status to the background. Together with the Wallach Art Gallery of New York’s Columbia University, the Musée d’Orsay is examining the important role of black people in art history, including as models, artists or other key figures, in the birth of modern art. From the French revolution to the avant-gardist times of the early 20th-century, paintings — with Édouard Manet’s “Olympia” being the show’s highlight — and photographs explore the subject of identity along with contemporary creations, such as Glenn Ligon’s unique neon installation. Last but not least, art dealer Larry Gagosian is contributing to the renovation of Notre-Dame cathedral by showcasing donated works from the artists he represents — a few of them, like Theaster Gates, Rachel Whiteread and Takashi Murakami, produced special items for the occasion — with proceeds going to help rebuild the damaged monument. — Anne-Aymone Gheerbrant “The Moon,” through July 22 Grand Palais, Galeries Nationales, Square Jean Perrin Entrance, 75008 Tel.: +33-1-40-13-48-00 Open Wednesday 10 a.m. to 10 p.m., Thursday to Monday 10 a.m. to 8 p.m. “Gilbert & George — There Were Two Young Men,” through Aug. 26 Fondation Louis Vuitton, 8 Avenue du Mahatma Gandhi, 75116 Tel.: +33-1-40-69-96-00 Open Monday, Wednesday, Thursday Noon to 7 p.m.; Friday, Noon to 9 p.m. and Saturday to Sunday, 11 a.m. to 8 p.m. “Henry Wessel — A Dark Thread,” through Aug. 25 “Fil Noir,” through Aug. 25 Maison Européenne de la Photographie, 5-7 Rue de Fourcy, 75004 Tel.: +33-1-44-78-75-00 Open Wednesday and Friday, 11 a.m. to 8 p.m.; Thursday, 11 a.m. to 10 p.m. and Saturday to Sunday, 10 a.m. to 8 p.m. “Dora Maar,” through July 29 Centre Pompidou, Place Georges Pompidou, 75004 Tel.: +33-1-44-78-12-33 Open Wednesday to Monday, 11 a.m. to 9 p.m. “Black Models: From Géricault to Matisse,” through July 21 Musée d’Orsay, 1 Rue de la Légion d’Honneur, 75007 Tel.: +33-1-40-49-48-14 Tuesday to Wednesday, 9:30 a.m. to 6 p.m.; Thursday, 9:30 a.m. to 9:45 p.m. and Friday to Sunday, 9:30 a.m. 6 p.m. “An Exhibition for Notre-Dame,” through July 27 Gagosian, 4 Rue de Ponthieu, 75008 Tel.: +33-1-75-00-05-92 Open Tuesday to Saturday, 11 a.m. to 7 p.m. Launch Gallery: Paris Scene: What’s New for Couture Season Sign up for WWD's Newsletter . 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What We Think Of Grieg Seafood ASA’s (OB:GSF) Investment Potential Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we'll look at Grieg Seafood ASA (OB:GSF) and reflect on its potential as an investment. Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. Firstly, we'll go over how we calculate ROCE. Next, we'll compare it to others in its industry. And finally, we'll look at how its current liabilities are impacting its ROCE. ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Generally speaking a higher ROCE is better. In brief, it is a useful tool, but it is not without drawbacks. Author Edwin Whitingsaysto be careful when comparing the ROCE of different businesses, since 'No two businesses are exactly alike.' The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Grieg Seafood: 0.18 = øre1.3b ÷ (øre9.0b - øre1.7b) (Based on the trailing twelve months to March 2019.) Therefore,Grieg Seafood has an ROCE of 18%. Check out our latest analysis for Grieg Seafood When making comparisons between similar businesses, investors may find ROCE useful. It appears that Grieg Seafood's ROCE is fairly close to the Food industry average of 19%. Separate from Grieg Seafood's performance relative to its industry, its ROCE in absolute terms looks satisfactory, and it may be worth researching in more depth. Our data shows that Grieg Seafood currently has an ROCE of 18%, compared to its ROCE of 9.7% 3 years ago. This makes us think about whether the company has been reinvesting shrewdly. The image below shows how Grieg Seafood's ROCE compares to its industry, and you can click it to see more detail on its past growth. When considering ROCE, bear in mind that it reflects the past and does not necessarily predict the future. ROCE can be misleading for companies in cyclical industries, with returns looking impressive during the boom times, but very weak during the busts. ROCE is, after all, simply a snap shot of a single year. Future performance is what matters, and you can see analyst predictions in ourfreereport on analyst forecasts for the company. Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual. To check the impact of this, we calculate if a company has high current liabilities relative to its total assets. Grieg Seafood has total liabilities of øre1.7b and total assets of øre9.0b. As a result, its current liabilities are equal to approximately 19% of its total assets. Low current liabilities are not boosting the ROCE too much. Overall, Grieg Seafood has a decent ROCE and could be worthy of further research. There might be better investments than Grieg Seafood out there,but you will have to work hard to find them. These promising businesses withrapidly growing earningsmight be right up your alley. I will like Grieg Seafood better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
As U.S. expansion notches record, recovery may have only just begun By Howard Schneider WASHINGTON (Reuters) - A now record-setting run of U.S. economic growth enters its 121st month on Monday, sustained by a decade of low interest rates and massive Federal Reserve intervention that helped put 22 million people back to work. But the real economic recovery may only be in its infancy, and, if recent history is any guide, it could be approaching a delicate moment. It was only last year that U.S. gross domestic product caught up with estimates of its potential, surpassing where Congressional Budget Office analysts feel it would have been if the housing bubble hadn't burst in 2007, investment bank Lehman Brothers hadn't failed the following year, and the world had not cratered into a deep recession. The periods when GDP exceeds potential are typically when workers enjoy the greatest wage gains and members of historically sidelined communities find jobs. In recent years, those periods have not lasted long, a fact that Fed and other officials are wrestling with as they weigh possible interest rate cuts and assess just where the U.S. economy now stands. "We're only now making up ground," even though the economy has been growing since June 2009, the month the National Bureau of Economic Research marked as the "trough" of the last recession, said Vincent Reinhart, chief economist at Mellon. The approach of the decade-long expansion mark has boosted speculation about how much longer the recovery might last, whether a recession is inevitable in the next couple of years, and whether the Fed and U.S. government are adequately prepared to fight another downturn. For the type of progress Fed and elected officials feel is needed to rebuild middle-class incomes, it may take several more years. The 2007-2009 recession wiped $600 billion dollars from U.S. GDP on an inflation-adjusted basis. It created an even bigger gap, of close to $1 trillion, between U.S. output and the economy's potential based on its population, industrial base, and other factors, according to estimates created annually by the CBO. Those estimates, dating back to the years just after World War Two, show a pattern that labor advocates argue should make the U.S. central bank willing to take some risks on behalf of wage earners. For most of the time since 1949 - 178 of 281 quarters as measured by the CBO - the economy has been below potential. Yet it is only during sustained periods when it operates above potential that workers claw back a higher share of the country's economic output. That happened consistently in the decade or two immediately following World War Two, and most notably in the late 1960s when a six-year run of output above potential helped push the share of GDP taken home by workers to close to 65%. The only recent comparable era was the late 1990s, when GDP stayed above potential for nearly five years and labor's share of national output, which had dipped below 60% at that point, again rebounded. Those two eras ended differently. One gave way to a period of excessive inflation that led the Fed to impose record-high interest rates that triggered a recession, beginning an era when output took 15 years to crawl back to potential. The other was nursed along by a Fed that trimmed interest rates at a time and in a way to keep growth on track, and ended with only a mild downturn in 2000. GRAPHIC https://fingfx.thomsonreuters.com/gfx/editorcharts/USA-ECONOMY/0H001QEFD729/eikon.png 'NEW WORLD' The central bank, which signaled in mid-June that it could cut interest rates as early as this month, is trying to make a similar read now in hopes of sustaining the sort of "tight" economy over the several more years needed for workers to gain more ground. But the environment has changed. In the short-term, global trade disputes and other risks could slow the economy no matter what the Fed does. The risk of inflation may be low, but so is the expected trend rate of growth in an economy where people are aging and productivity is lagging - a drag on workers' potential to recover. Income and wealth inequality, and the effects of automation on the workforce, have become an increasing concern, but so has the risk that keeping interest rates too low might feed the sort of excessive debt that caused the last financial crisis. The U.S. economy has only operated above potential in 12 quarters since 2001, including the last four. Labor's share of national output at the start of this year was just over 56%, in dollar terms about $1.5 trillion short of what it would be at the peak levels in the 1960s and 1990s. The expansion may have notched its record, but it may take a bit of nerve for the Fed to extend a recovery that, in many ways, is only just starting. "It feels like a new world with structurally less global demand and structurally less resilience in our economies," said Nathan Sheets, chief economist at PGIM Fixed Income. "That is the nature of the new world that we are in. It does make it more complicated." (Reporting by Howard Schneider; Editing by Paul Simao)
Marathon Partners’ Mario Cibelli Talks e.l.f. Beauty, Inc. (ELF) and Grubhub Inc. (GRUB) In a recentBarron’s interview, an activist value investor and the founder of NYC-basedMarathon Partners Equity Management,Mario Cibelli,shared his thoughts on several stocks in his portfolio. Before we summarize the most important insights from this interview, let’s take a look at the investor’s background. The beginnings of his professional career in investing are linked to famous Mario Gabelli’s GAMCO Investors where he got a job right after college. He graduated with a Bachelor’s degree in Business Management from Binghampton University. Before launching his own investment management firm Marathon Partners Equity Management (previously known as Cibelli Capital Management) in 2001, he also worked at Prudential Securities, and Robotti & Co. As it turns out, the biggest influence on his investment philosophy made billionaire Mario Gabelli as his Marathon Partners also takes a similar approach to value investing. The fund usually runs a concentrated portfolio, giving advantage to stocks belonging to consumer goods and services sectors. Mario Cibelli named it Marathon Partners wanting to emphasize the importance of the long-term orientation the fund has. Aside from the long term investment horizon, the fund is known for its activist value approach and intensive research. Its success worth mentioning was an early investment inNetflix, Inc. (NASDAQ:NFLX),when the stock’s potential was unrecognized by the market, and was trading at around $10. Since its inception Marathon Partners generated an annualized return of 13.6%, beating the S&P 500, which delivered 8% in the same period. In the last couple of years, its return figures fluctuated, as the fund delivered an impressive 37.65% in 2013, and lost 0.58% in the following year. In 2015 it brought back 5.86%, in 2016 7.46%, and in 2017 13.75%. Last year through October it generated a return of 1.01%. At the beginning of January, the fund held around $274.79 million in regulatory assets under management on a discretionary basis. The seventh largest position in the fund’s portfolio at the end of March was inGrubhub Inc. (NYSE:GRUB),with the fund holding 160,000 company’s shares, which were valued $11.12 million. This position comprised 4.91% of its equity portfolio. The stock was interesting to comment as its price decreased to around $70 from $146.11 it had in on September 10th, 2018. Hence, in the above-mentioned interview, Mario Cibelli said this big price drop happened due to the strong competition. Nevertheless, the activist investor still thinks there’s a big potential hidden in the stock, which is just unrecognized by the market. He said that food delivery through online ordering is becoming more popular every day, and that will eventually completely substitute phone ordering, which is one of the things that make this business attractive. What makes it more appealing than its competitors are good economic qualities of its delivery services, with Grubhub focusing on independent restaurants instead of big restaurant franchises like McDonald’s, for example, because one order from an independent restaurant could possibly generate the same profits like nine orders from McDonald’s. He also emphasized that Grubhub’s business model, which mirrors a restaurant owner’s perspective is what makes it special. [caption id="attachment_577792" align="aligncenter" width="750"] Baiterek Media/Shutterstock.com[/caption] Mario Cibelli also discussed his biggest Q1 2019 position, which was ine.l.f. Beauty, Inc. (NYSE:ELF)with his fund holding 4.43 million shares, worth $46.91 million. Here is where Mario Cibelli showed some of his activist skills. For instance, in January, he sent an open letter to e.l.f. Beauty’s board of directors stating he wasDisappointed With The Management. More recently, in the interview, he talked about the company’s discouraging revenues in 2018, which didn’t reach expectations, resulting in a price drop to around $13 from $20 it had 18 months ago. Fortunately, Mario Cibelli thinks that a downhill road has come to an end for e.l.f. Beauty, as it has started growing again, and at a much faster rate than the overall cosmetics market. The company’s trademark is “absurdly low price” of its products that are reaching consumers through social media advertising and selling in places like Target, Ulta Beauty, and Walmart. He further explained that e.l.f. Beauty offers a $3 lipstick similar to one Kyle Jenner sells for more than five times that price. Mario Cibelli sees this stock as misunderstood by the market and its shares undervalued, and thinks there’s a potential for the company to get acquired by some big names in the industry, such as L’Oréal, Revlon, and Estée Lauder, for example. Let’s take a look at Marathon Partners’ top five holdings at the end of Q1 2019. As written above, its most valuable position at the end of March was in e.l.f. Beauty. The second biggest position comprising 13.31% of Marathon Partners’ 13F portfolio was inUS Foods Holding Corp. (NYSE:USFD)and it counted 862,500 shares with a value of $30.11 million. Its third largest stake, worth $27.96 million on the basis of 645,000 shares was inHD Supply Holdings, Inc. (NASDAQ:HDS).The fund also reported big positions inPayPal Holdings, Inc. (NASDAQ:PYPL)andFacebook, Inc. (NASDAQ:FB),counting 227,500 shares with a value of $23.62 million and 112,500 shares worth $18.75 million, respectively. Disclosure:None. This article is originally published atInsider Monkey.
EU leaders struggle to agree on candidates for top jobs BRUSSELS (AP) — Marathon talks of European Union leaders dragged into a second day Monday as they sought to narrow a list of candidates for key posts at the helm of the 28-nation bloc amid deep divisions over how to best balance political, geographic and gender considerations. With the selection process bogged down for the second EU summit meeting in a row, the leaders were still considering Dutch socialist Frans Timmermans to replace Christian Democrat Jean-Claude Juncker as president of the EU's powerful executive arm, the European Commission. "Let's see," Italian Prime Minister Giuseppe Conte, said of Timmermans' chances when briefly descending from the meeting room in EU headquarters around breakfast time. The Timmermans option deeply divided the European People's Party-Christian Democrat group as it would surrender the key post to the rival Socialists & Democrats bloc despite EPP remaining the biggest group in the EU following last month's election. Bulgarian Prime Minister Boyko Borissov, an EPP stalwart, posted a video on his verified Facebook account of a discussion with Timmermans in which Borissov said the Dutchman should get the Commission job while the less coveted parliament presidency should go to EPP candidate Manfred Weber. But Irish Prime Minister Leo Varadkar insisted that the "vast majority of the EPP prime ministers don't believe we should give up the presidency of the Commission quite so easily, without a fight." After negotiations started early Sunday, summit host and EU Council President Donald Tusk had more than 30 bilateral meetings in his attempt to find a breakthrough. The task was never going to be easy. The appointments must take into account political affiliation, geography — balancing east and west, north and south — population size and gender. The leaders of EU institutions are supposed to impartially represent the interests of all member nations globally and in Brussels. Story continues Some leaders discussed the roster of upcoming vacancies, which also include the EU's top diplomat, the president of the European Parliament and the chief of the European Central Bank, on the sidelines of the Group of 20 summit in Japan that concluded Saturday. Tusk wants nominations to be wrapped up soon, seeking to prevent further erosion of public confidence in the EU amid Brexit uncertainty and intra-bloc divisions over managing migration. There was hope at the previous summit on June 20-21 that more time would clarify who should replace Juncker. German Chancellor Angela Merkel backs Weber, the German conservative whose center-right European People's Party is the largest political group in the European Parliament but lost seats in the EU elections in May. Macron has suggested Weber lacks the political and government experience for such a high-profile role. Weber could still be considered for the head of the European Parliament which is the EU's only elected institution. Merkel said there was still a good possibility for Weber and Timmermans, the top center-left candidate from the European Socialist and Democrats group, to be among the winners of the top positions. Other leaders from the same political family disagreed. The EPP and the S&D are the two biggest political groups in the EU, but both lost seats in May's polls, where far-right and populist parties, pro-business liberals and the Greens made gains. EU leaders want to fill the positions soon because the European Parliament is set to pick a new president next Wednesday. Under EU rules, member countries choose who will run the Commission, replacing Juncker. The parliament must endorse that choice. But the assembly has insisted that only the lead candidates from parties that ran in last month's elections should be eligible for the post. "The lead candidates is not the only criteria," said Conte. The commission proposes and enforces EU laws on policies ranging from ranging from the massive single market to agriculture spending, from competition issues to immigration. The job responsibilities are huge: Tusk and Juncker negotiate with the likes of President Donald Trump or Chinese leader Xi Jinping, while the head of the ECB can set monetary policy for the 19 nations that use the shared euro currency. The outgoing group of EU officials was lopsidedly Italian, with Antonio Tajani holding the parliament top post, Mario Draghi head of the ECB and Federica Mogherini the EU foreign policy chief. Top candidates include current prime ministers Stefan Lofven of Sweden and Andrej Plenkovic of Croatia. Others mentioned include Brexit negotiator Michel Barnier of France, Greens leader Ska Keller of Germany, Lithuanian President Dalia Grybauskaite and Margrethe Vestager, the EU's competition chief since 2014. ___ Associated Press writers Lorne Cook and Frank Jordans in Berlin contributed to this report.
Should You Worry About Menon Bearings Limited's (NSE:MENONBE) CEO Pay Cheque? Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Ramesh Dixit has been the CEO of Menon Bearings Limited ( NSE:MENONBE ) since 1992. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid. See our latest analysis for Menon Bearings How Does Ramesh Dixit's Compensation Compare With Similar Sized Companies? At the time of writing our data says that Menon Bearings Limited has a market cap of ₹4.0b, and is paying total annual CEO compensation of ₹7.6m. (This number is for the twelve months until March 2019). That's a notable increase of 14% on last year. Notably, the salary of ₹7.6m is the vast majority of the CEO compensation. We examined a group of similar sized companies, with market capitalizations of below ₹14b. The median CEO total compensation in that group is ₹1.3m. Thus we can conclude that Ramesh Dixit receives more in total compensation than the median of a group of companies in the same market, and of similar size to Menon Bearings Limited. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous. You can see a visual representation of the CEO compensation at Menon Bearings, below. NSEI:MENONBE CEO Compensation, July 1st 2019 Is Menon Bearings Limited Growing? Menon Bearings Limited has increased its earnings per share (EPS) by an average of 17% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 19%. Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow. Story continues Has Menon Bearings Limited Been A Good Investment? Most shareholders would probably be pleased with Menon Bearings Limited for providing a total return of 44% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size. In Summary... We examined the amount Menon Bearings Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group. However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Whatever your view on compensation, you might want to check if insiders are buying or selling Menon Bearings shares (free trial). Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Does AIREA plc's (LON:AIEA) CEO Pay Reflect Performance? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Neil Rylance became the CEO of AIREA plc (LON:AIEA) in 2008. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels. View our latest analysis for AIREA According to our data, AIREA plc has a market capitalization of UK£23m, and pays its CEO total annual compensation worth UK£339k. (This number is for the twelve months until December 2018). That's below the compensation, last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£251k. We examined a group of similar sized companies, with market capitalizations of below UK£157m. The median CEO total compensation in that group is UK£253k. As you can see, Neil Rylance is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean AIREA plc is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous. The graphic below shows how CEO compensation at AIREA has changed from year to year. Over the last three years AIREA plc has grown its earnings per share (EPS) by an average of 9.0% per year (using a line of best fit). In the last year, its revenue is up 7.4%. I'd prefer higher revenue growth, but I'm happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. We don't have analyst forecasts, but you might want to assessthis data-rich visualizationof earnings, revenue and cash flow. I think that the total shareholder return of 335%, over three years, would leave most AIREA plc shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size. We compared total CEO remuneration at AIREA plc with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group. One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. Considering this fine result for investors, we daresay the CEO compensation might be apt. Shareholders may want tocheck for free if AIREA insiders are buying or selling shares. Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
AIREA plc (LON:AIEA): A Fundamentally Attractive Investment Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of AIREA plc (LON:AIEA), it is a financially-sound , dividend-paying company with a a great history of performance. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at thereport on AIREA here. AIEA delivered a bottom-line expansion of 35% in the prior year, with its most recent earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 25%, which is an notable feat for the company. AIEA is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that AIEA has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. AIEA seems to have put its debt to good use, generating operating cash levels of 3.79x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows. For those seeking income streams from their portfolio, AIEA is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 7.1%, making it one of the best dividend companies in the market. For AIREA, there are three relevant factors you should look at: 1. Future Outlook: What are well-informed industry analysts predicting for AIEA’s future growth? Take a look at ourfree research report of analyst consensusfor AIEA’s outlook. 2. Valuation: What is AIEA worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? Theintrinsic value infographic in our free research reporthelps visualize whether AIEA is currently mispriced by the market. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of AIEA? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Estimating The Intrinsic Value Of T.V. Today Network Limited (NSE:TVTODAY) Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we'll do a simple run through of a valuation method used to estimate the attractiveness of T.V. Today Network Limited (NSE:TVTODAY) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. I will be using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward. Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model. View our latest analysis for T.V. Today Network We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: [{"": "Levered FCF (\u20b9, Millions)", "2019": "\u20b91.09k", "2020": "\u20b91.03k", "2021": "\u20b91.37k", "2022": "\u20b91.44k", "2023": "\u20b91.52k", "2024": "\u20b91.61k", "2025": "\u20b91.72k", "2026": "\u20b91.84k", "2027": "\u20b91.97k", "2028": "\u20b92.12k"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x1", "2020": "Analyst x1", "2021": "Analyst x1", "2022": "Est @ 5.06%", "2023": "Est @ 5.8%", "2024": "Est @ 6.33%", "2025": "Est @ 6.69%", "2026": "Est @ 6.95%", "2027": "Est @ 7.13%", "2028": "Est @ 7.26%"}, {"": "Present Value (\u20b9, Millions) Discounted @ 14.84%", "2019": "\u20b9947.38", "2020": "\u20b9783.99", "2021": "\u20b9901.86", "2022": "\u20b9825.00", "2023": "\u20b9760.07", "2024": "\u20b9703.72", "2025": "\u20b9653.79", "2026": "\u20b9608.86", "2027": "\u20b9567.98", "2028": "\u20b9530.46"}] Present Value of 10-year Cash Flow (PVCF)= ₹7.28b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 7.6%. We discount the terminal cash flows to today's value at a cost of equity of 14.8%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = ₹2.1b × (1 + 7.6%) ÷ (14.8% – 7.6%) = ₹31b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= ₹₹31b ÷ ( 1 + 14.8%)10= ₹7.82b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is ₹15.11b. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of ₹254.74. Compared to the current share price of ₹281.5, the company appears around fair value at the time of writing. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at T.V. Today Network as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 14.8%, which is based on a levered beta of 0.848. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For T.V. Today Network, I've put together three pertinent factors you should further research: 1. Financial Health: Does TVTODAY have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Future Earnings: How does TVTODAY's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with ourfree analyst growth expectation chart. 3. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of TVTODAY? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NSE every day. If you want to find the calculation for other stocks justsearch here. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Iran says OPEC unity necessary for cooperation with non-OPEC producers DUBAI (Reuters) - Members of the Organization of the Petroleum Exporting Countries (OPEC) should have unity among themselves, Iran's Oil Minister Bijan Zanganeh was quoted as saying on Monday, adding that Tehran backed cooperation with non-OPEC oil exporter states. "Without unity among members of OPEC, it is meaningless to plan cooperation between OPEC and non-OPEC countries," the Oil Ministry's website SHANA quoted Zanganeh as saying before leaving Tehran to attend an OPEC meeting in Vienna. OPEC members will meet later on Monday in Vienna followed by a meeting with non-OPEC states on July 2, where both sides are expected to extend the current output restrictions of 1.2 million barrels per day for another six to nine months. "While we have not been hostile to any country, some members of the OPEC have taken the path of hostility with our nation," SHANA reported Zaganeh saying. Iran has objected to policies put forward by its regional arch-rival Saudi Arabia, saying Riyadh was too close to the United States. "Iran supports cooperation with non-OPEC states, but as long as some members of OPEC are hostile against other members, like Iran, OPEC's understandings with non-OPEC states are meaningless and there is no room for cooperation," Zanganeh said. Recent unexplained attacks on oil and fuel tankers in the waters near the Straits of Hormuz and Iran's shooting down of a U.S. unmanned drone aircraft are recent signs of the escalation of the dispute between the United States and Iran over its nuclear programme. In May 2018, the United States exited a 2015 deal between Iran and world powers that curbed the Iranian nuclear programme in exchange for the lifting of international financial sanctions on Iran. After withdrawing, Washington reimposed sanctions and further tightened them from the start of May, ordering all countries and companies to halt all imports of Iranian oil or be banished from the global financial system. Story continues The United States has also dispatched extra troops to the region to counter what it describes as Iranian threats. Saudi Arabia has backed Washington's "maximum pressure" approach towards Iran. "An organisation, where two members strive to challenge the interests of other members, is doomed to dissolution and talks of OPEC-non-OPEC agreements would be meaningless,” Zanganeh said. Prior to reimposition of the U.S. sanctions, Iran was the third-largest oil producer in OPEC. [OPEC/O] (Writing by Parisa Hafezi; editing by Christian Schmollinger)
An Intrinsic Calculation For Venture Corporation Limited (SGX:V03) Suggests It's 28% Undervalued Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! In this article we are going to estimate the intrinsic value of Venture Corporation Limited (SGX:V03) by taking the expected future cash flows and discounting them to today's value. I will be using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward. We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model. See our latest analysis for Venture We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: [{"": "Levered FCF (SGD, Millions)", "2019": "SGD322.85", "2020": "SGD349.90", "2021": "SGD387.94", "2022": "SGD418.64", "2023": "SGD444.72", "2024": "SGD467.19", "2025": "SGD486.94", "2026": "SGD504.71", "2027": "SGD521.10", "2028": "SGD536.54"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x4", "2020": "Analyst x5", "2021": "Analyst x5", "2022": "Est @ 7.91%", "2023": "Est @ 6.23%", "2024": "Est @ 5.05%", "2025": "Est @ 4.23%", "2026": "Est @ 3.65%", "2027": "Est @ 3.25%", "2028": "Est @ 2.96%"}, {"": "Present Value (SGD, Millions) Discounted @ 8.7%", "2019": "SGD297.00", "2020": "SGD296.11", "2021": "SGD302.02", "2022": "SGD299.82", "2023": "SGD293.00", "2024": "SGD283.16", "2025": "SGD271.49", "2026": "SGD258.87", "2027": "SGD245.87", "2028": "SGD232.89"}] Present Value of 10-year Cash Flow (PVCF)= SGD2.78b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (2.3%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.7%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = S$537m × (1 + 2.3%) ÷ (8.7% – 2.3%) = S$8.6b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= SGDS$8.6b ÷ ( 1 + 8.7%)10= SGD3.72b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is SGD6.50b. In the final step we divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of SGD22.57. Relative to the current share price of SGD16.29, the company appears a touch undervalued at a 28% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Venture as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.7%, which is based on a levered beta of 1.074. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Venture, I've put together three essential factors you should look at: 1. Financial Health: Does V03 have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Future Earnings: How does V03's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with ourfree analyst growth expectation chart. 3. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of V03? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every SG stock every day, so if you want to find the intrinsic value of any other stock justsearch here. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Are Investors Undervaluing Venture Corporation Limited (SGX:V03) By 28%? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Does the July share price for Venture Corporation Limited (SGX:V03) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the foreast future cash flows of the company and discounting them back to today's value. This is done using the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple! Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model. See our latest analysis for Venture We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: [{"": "Levered FCF (SGD, Millions)", "2019": "SGD322.85", "2020": "SGD349.90", "2021": "SGD387.94", "2022": "SGD418.64", "2023": "SGD444.72", "2024": "SGD467.19", "2025": "SGD486.94", "2026": "SGD504.71", "2027": "SGD521.10", "2028": "SGD536.54"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x4", "2020": "Analyst x5", "2021": "Analyst x5", "2022": "Est @ 7.91%", "2023": "Est @ 6.23%", "2024": "Est @ 5.05%", "2025": "Est @ 4.23%", "2026": "Est @ 3.65%", "2027": "Est @ 3.25%", "2028": "Est @ 2.96%"}, {"": "Present Value (SGD, Millions) Discounted @ 8.7%", "2019": "SGD297.00", "2020": "SGD296.11", "2021": "SGD302.02", "2022": "SGD299.82", "2023": "SGD293.00", "2024": "SGD283.16", "2025": "SGD271.49", "2026": "SGD258.87", "2027": "SGD245.87", "2028": "SGD232.89"}] Present Value of 10-year Cash Flow (PVCF)= SGD2.78b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 2.3%. We discount the terminal cash flows to today's value at a cost of equity of 8.7%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = S$537m × (1 + 2.3%) ÷ (8.7% – 2.3%) = S$8.6b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= SGDS$8.6b ÷ ( 1 + 8.7%)10= SGD3.72b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is SGD6.50b. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of SGD22.57. Compared to the current share price of SGD16.29, the company appears a touch undervalued at a 28% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Venture as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.7%, which is based on a levered beta of 1.074. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Whilst important, DCF calculation shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Venture, There are three relevant factors you should look at: 1. Financial Health: Does V03 have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Future Earnings: How does V03's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with ourfree analyst growth expectation chart. 3. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of V03? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the SGX every day. If you want to find the calculation for other stocks justsearch here. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Does Meghmani Organics Limited's (NSE:MEGH) 47% Earnings Growth Make It An Outperformer? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! In this commentary, I will examine Meghmani Organics Limited's (NSE:MEGH) latest earnings update (31 March 2019) and compare these figures against its performance over the past couple of years, as well as how the rest of the chemicals industry performed. As an investor, I find it beneficial to assess MEGH’s trend over the short-to-medium term in order to gauge whether or not the company is able to meet its goals, and ultimately sustainably grow over time. Check out our latest analysis for Meghmani Organics MEGH's trailing twelve-month earnings (from 31 March 2019) of ₹2.5b has jumped 47% compared to the previous year. Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 39%, indicating the rate at which MEGH is growing has accelerated. How has it been able to do this? Let's see whether it is merely because of industry tailwinds, or if Meghmani Organics has experienced some company-specific growth. In terms of returns from investment, Meghmani Organics has invested its equity funds well leading to a 26% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 13% exceeds the IN Chemicals industry of 9.2%, indicating Meghmani Organics has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Meghmani Organics’s debt level, has increased over the past 3 years from 18% to 27%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 123% to 57% over the past 5 years. Meghmani Organics's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. While Meghmani Organics has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I recommend you continue to research Meghmani Organics to get a more holistic view of the stock by looking at: 1. Financial Health: Are MEGH’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here. 2. Valuation: What is MEGH worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? Theintrinsic value infographic in our free research reporthelps visualize whether MEGH is currently mispriced by the market. 3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here. NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2019. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Why Ashtead Group plc (LON:AHT) Looks Like A Quality Company Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. To keep the lesson grounded in practicality, we'll use ROE to better understand Ashtead Group plc (LON:AHT). Ashtead Group has a ROE of 28%, based on the last twelve months. That means that for every £1 worth of shareholders' equity, it generated £0.28 in profit. Check out our latest analysis for Ashtead Group Theformula for ROEis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Ashtead Group: 28% = UK£797m ÷ UK£2.8b (Based on the trailing twelve months to April 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. It is all earnings retained by the company, plus any capital paid in by shareholders. You can calculate shareholders' equity by subtracting the company's total liabilities from its total assets. ROE looks at the amount a company earns relative to the money it has kept within the business. The 'return' is the yearly profit. A higher profit will lead to a higher ROE. So, as a general rule,a high ROE is a good thing. Clearly, then, one can use ROE to compare different companies. Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. As is clear from the image below, Ashtead Group has a better ROE than the average (15%) in the Trade Distributors industry. That is a good sign. We think a high ROE, alone, is usually enough to justify further research into a company. For exampleyou might checkif insiders are buying shares. Most companies need money -- from somewhere -- to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same. It's worth noting the significant use of debt by Ashtead Group, leading to its debt to equity ratio of 1.34. While the ROE is impressive, that metric has clearly benefited from the company's use of debt. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it. Return on equity is useful for comparing the quality of different businesses. In my book the highest quality companies have high return on equity, despite low debt. All else being equal, a higher ROE is better. But when a business is high quality, the market often bids it up to a price that reflects this. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So you might want to take a peek at thisdata-rich interactive graph of forecasts for the company. If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Boasting A 28% Return On Equity, Is Ashtead Group plc (LON:AHT) A Top Quality Stock? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. We'll use ROE to examine Ashtead Group plc (LON:AHT), by way of a worked example. Our data showsAshtead Group has a return on equity of 28%for the last year. Another way to think of that is that for every £1 worth of equity in the company, it was able to earn £0.28. View our latest analysis for Ashtead Group Theformula for return on equityis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Ashtead Group: 28% = UK£797m ÷ UK£2.8b (Based on the trailing twelve months to April 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is the capital paid in by shareholders, plus any retained earnings. The easiest way to calculate shareholders' equity is to subtract the company's total liabilities from the total assets. ROE looks at the amount a company earns relative to the money it has kept within the business. The 'return' is the amount earned after tax over the last twelve months. The higher the ROE, the more profit the company is making. So, all else being equal,a high ROE is better than a low one. That means it can be interesting to compare the ROE of different companies. One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As you can see in the graphic below, Ashtead Group has a higher ROE than the average (15%) in the Trade Distributors industry. That's what I like to see. We think a high ROE, alone, is usually enough to justify further research into a company. For example,I often check if insiders have been buying shares. Most companies need money -- from somewhere -- to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking. It's worth noting the significant use of debt by Ashtead Group, leading to its debt to equity ratio of 1.34. There's no doubt its ROE is impressive, but the company appears to use its debt to boost that metric. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time. Return on equity is one way we can compare the business quality of different companies. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE. But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So you might want to check this FREEvisualization of analyst forecasts for the company. If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Moab Capital Partners’ Return, AUM, and Holdings Back in 2006,Michael Rothenbergfounded his own asset management firm calledMoab Capital Partners.Prior to launching his own hedge fund, he worked at Xerion Capital Partners where he was in charge of a portfolio of event-driven, distressed debt and bank debt equities. In fact, Michael Rothenberg sharpened his investment skills mainly in the event-driven sphere. At Troy Capital Management, LLC, he was managing distressed debt portfolio, at Gracie Capital Partners, LLC, which is an event-driven and distressed debt oriented hedge fund, was an investment analyst, and at Perry Capital, LLC, he also honed his investment acumen in the event-driven and distressed debt domains. With almost 20 years of experience in the industry, Michael Rothenberg can be considered an event-driven strategy veteran. He graduated from The Wharton School at The University of Pennsylvania with a BS in Economics, majoring in Finance. Moab Capital Partners’ investment philosophy covers special situations, arbitrage, credit and distressed, and equity restructuring investment strategies. It applies due diligence procedures such as communication with the competition, shareholders, and industry specialists, giving special importance to free cash flow yields of the companies. It mainly invests in misinterpreted small and mid-cap stocks in the US. The fund’s portfolio usually has around 25 to 40 long positions and 10 to 15 short ones with first 10 accounting 50% of it. According to its plain brochure at the end of 2016, Moab Capital Partners had around $850.52 million in assets under management on a discretionary basis. [caption id="attachment_380470" align="aligncenter" width="750"] photofriday/Shutterstock.com[/caption] Most of the recent years were favorable for the fund’s investment strategy in terms of the return figures. For instance, its Moab Partners LP fund delivered solid 4.77% in 2012, 18.46% in 2013, 10.15% in 2014, 4.37% in 2015, 10.17% in 2016, and 7.15% in 2017. Last year the fund felt difficult market conditions, losing 1.47% through October. Its total return amounted to 161.30% for a compound annual return of 7.99%, while its worst drawdown stood at 16.86. Its Moab Partners Offshore Limited brought back 4.74% in 2012, 18.25% in 2013, 9.78% in 2014, 4.34% in 2015, and 10.05% in 2016. Insider Monkey’s mission is to identify promising (and also terrible) hedge fund stock pitches and share them with our subscribers. We launched a long activist investing strategy in our monthly newsletter 2 years ago. This strategy’s stock picks returned 61% in 2 short years, vs. a gain of 21% for the S&P 500 Index ETF (SPY). Last October we shared one of our stock picks, Ascendis Pharmaceuticals (ASND), in a free sample issue of our monthly newsletter (you can stilldownload it free of charge). The stock doubled in less than 5 months. We have also been very successful at identifying stocks that will decline even in a bull market. We launched our short strategy a little more than 2 years ago and share our short stock picks in our quarterly newsletter. This strategy’s picks lost 30.9% since then, vs. a gain of 24% for the S&P 500 Index. This means our short strategy actually outperformed the market by nearly 55 percentage points (let us know if you don’t understand how the outperformance for a short strategy is calculated). Recently our monthly newsletter identified another undervalued stock that is expected to increase its earnings by more than 10% annually and trades at only 10 times its 2019 earnings. We expect this stock to return 60% in the next 12-24 months. We take a closer look at hedge funds like Moab Capital Partners in order to identify their best and worst ideas. At the end of the first quarter of 2019, the fund’s equity portfolio was valued $421.84 million, down from $423.92 million it was valued at the end of the fourth quarter of 2019. During the quarter, Moab Capital Partners initiated nine new positions and dumped six companies. Even though the funs is more focused on less known stocks among investors it also held several positions in some of the30 Most Popular Stocks Among Hedge Funds in Q1 of 2019. One of those positions was inAlphabet Inc. (NASDAQ:GOOGL),and it counted 9,070 shares with a value of $10.67 million. This was actually the fund’s ninth biggest holding at the end of March. Another one, for example, wasAmazon.com, Inc. (NASDAQ:AMZN), in which the fund held a position worth $10.15 million on the account of 5,699 shares outstanding. And, Amazon took third place on that list of favorites stocks in the first quarter of 2019. Among the stocks the fund dumped during Q1 2019 wereJefferies Financial Group Inc. (NYSE:JEF), Vanguard Russell 2000 Index Fund ETF Shares (NASDAQ:VTWO), andVanEck Vectors BDC Income ETF (NYSE:BIZD).The fund said goodbye to 347,055 Jefferies’ shares with a value of $6.03 million, to 50,300 Vanguard’s shares with a value of $5.40 million and to 21,409 shares of VanEck that were worth $301,000. Click hereto read the rest of this article, where we present Moab Capital Partners’ most valuable holdings and new additions in the first three months of 2019. Disclosure:None This article was originally published atInsider Monkey.
John Oliver Unloads on Trump for Treating Murderous Autocrats Like Kim Jong Un Better Than Women Eric Liebowitz/HBO On Sunday evening, John Oliver opened the latest episode of his Emmy-winning series Last Week Tonight by addressing President Trumps week of palling around with dictators who poison journalists and princes who dismember journalists with bone saws . This week was a big one for Trump and diplomacytwo words that go together like fire and Chicago 1871, joked Oliver. First came the G-20 summit in Osaka where, as the late-night host explained, Trump was overseas this week meeting with his favorite authoritarians. He joked with Putin about meddling in U.S. elections, called Saudi Prince Mohammed bin Salman a friend of mine. If that werent enough, just this morning [Trump] popped across the DMZ to North Korea with Kim Jong Un, while seemingly being thrilled that hed been invited over. He then threw to a clip of Trump seated awkwardly next to the North Korean tyrant, with Trump saying, Its just an honor to be with you it was an honor that you asked me to step over that line, and I was proud to step over the line. I thought you might do thatI wasnt surebut I was ready to do it. And I want to thank you. Its been great. John Oliver on His Immigration Battle Against Trump: Their Actions Have Been Heinous Oh, thats actually nice! Oliver exclaimed. So Trump wanted to step over the line, was ready to do it, but waited until he received affirmative consent. What a refreshing change of pace for him! Maybe Trumps mantra going forward should be: Treat women with the same respect you show murderous autocrats. Hes growing! Good for him. That last dig was surely a reference to writer E. Jean Carrolls rape allegation against Trump making her the 22nd woman to accuse the president of sexual misconduct. Read more at The Daily Beast. Got a tip? Send it to The Daily Beast here Get our top stories in your inbox every day. Sign up now! Daily Beast Membership: Beast Inside goes deeper on the stories that matter to you. Learn more.
Is Gaztransport & Technigaz Société Anonyme (EPA:GTT) Potentially Underrated? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Gaztransport & Technigaz Société Anonyme (EPA:GTT) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of GTT, it is a company with great financial health as well as a a great history of performance. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, read the fullreport on Gaztransport & Technigaz Société Anonyme here. In the previous year, GTT has ramped up its bottom line by 23%, with its latest earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 80%, which is an optimistic signal for the future. GTT's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that GTT has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. GTT's has produced operating cash levels of 75.61x total debt over the past year, which implies that GTT's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. For Gaztransport & Technigaz Société Anonyme, I've compiled three relevant aspects you should further examine: 1. Future Outlook: What are well-informed industry analysts predicting for GTT’s future growth? Take a look at ourfree research report of analyst consensusfor GTT’s outlook. 2. Valuation: What is GTT worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? Theintrinsic value infographic in our free research reporthelps visualize whether GTT is currently mispriced by the market. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of GTT? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
UniCredit says it will stick to organic growth, mergers difficult MILAN (Reuters) - Italy's biggest lender, UniCredit <CRDI.MI>, will stick to organic growth in its new business plan, Chief Executive Jean Pierre Mustier said in an interview published in La Stampa newspaper on Monday, saying European mergers were difficult. "I have always been clear," he said when asked about speculation that UniCredit could merge with either France's Societe Generale <SOGN.PA> or Germany's Commerzbank <CBKG.DE>. "Our plan is (built) on an organic basis, the management is concentrated on its execution. European mergers are very difficult and the new plan will be in line with the previous one, with the goal to create value for the shareholders." UniCredit is to unveil a new business plan late this year. (Reporting by Gianluca Semeraro; Editing by Mark Bendeich)
Moab Capital Partners’ Return, AUM, and Holdings (Part II) Read the beginning of thisarticle here. The most valuable position in Moab Capital Partners’ portfolio at the end of Q1 2019 was inViad Corp (NYSE:VVI)worth $82.05 million, on the basis of 1.46 million shares outstanding. This position comprised 19.45% of the fund's portfolio. Viad Corp is an S&P SmallCap 600 company that offers experiential services in the US, Canada, Europe, the UK, and the UAE. It has a market cap of $1.34 billion and it is trading at a P/E ratio of 33.32. In its last financial report for the first quarter of 2019, Viad Corp reported revenue of $285.6 million and diluted net loss per share of $0.89, compared to revenue of $277.4 million and diluted net loss per share of $0.47 for the fourth quarter of 2018. Year-to-date, the company's stock gained 33.09%, closing on June 28th with a price of $66.24. The second biggest stake the fund held inAir Transport Services Group, Inc. (NASDAQ:ATSG)worth $46.1 million, counting almost 2 million shares outstanding. This position amassed 10.92% of the fund’s portfolio. Air Transport Services Group is an aviation holding company that offers air cargo and related services. It has a market cap of $1.40 billion, while trading at a P/E ratio of 26.33. Over the past six months, its stock gained 8.3% closing with $24.40 on June 28th. For the first quarter of 2019, the company reported revenues of $348.18 million and diluted EPS of $0.25, compared to revenues of $203.04 million and diluted EPS of $0.27 in the same quarter of 2018. RadNet, Inc. (NASDAQ:RDNT)was Moab Capital Partner’s third largest position at the end of March, comprising 6.69% of its equity portfolio. During the quarter, the fund lowered its stake in it by 33% to 2.28 million shares with a value of $28.25 million. Out of nine new positions the fund added during the quarter, the biggest one was inOrbotech(previously NASDAQ:ORBK), which in the meantime was acquired byKLA-Tencor Corporation (NASDAQ:KLAC). This acquisition gave Orbotech shareholders $38.86 per share in cash and 0.25 of a share of KLA common stock for each Orbotech’s ordinary share. During the quarter, Moab Capital Partners purchased 266,997 Orbotech’s shares with a value of $17.39 million. KLA-Tencor Corporation is a Milpitas, California-based capital equipment company that provides management systems and process control for various nanoelectronic industries. Over the last 12 months, its shares gained 12.71%, having a closing price on June 28th of $118.20. The second biggest addition to the fund’s portfolio during Q1 2019, wasThe Ultimate Software Group, Inc. (NASDAQ:ULTI).The fund acquired a position in the company worth $9.1 million, on the account of 27,557 shares, amassing 2.15% of its portfolio. The Ultimate Software Group is a developer of cloud-based human resources applications, and in February the company announced approval to be acquired by Hellman & Friedman for approximately $11 billion. Moab Capital Partners also initiated a position in GoldCorp (previously NYSE:GG), which, in the meantime, merged withNewmont Mining Corp. (NYSE:NEM)to form the largest gold-mining company in the world, now calledNewmont Goldcorp Corporation (NYSE:NEM).Before the merger the, during Q1 2019, the fund purchased 734,616 GoldCorp’s shares with a value of $8.41 million. A newly formed company has a market cap of $31.21 billion while trading at a P/E ratio of 85.96. Over the last 30 days, the stock gained 16.25%, closing on June 28thwith a price of $38.47 per share. Disclosure:None This article was originally published atInsider Monkey.
Shareholders Are Thrilled That The Gaztransport & Technigaz Société Anonyme (EPA:GTT) Share Price Increased 225% Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. But if you buy shares in a really great company, you canmorethan double your money. For example, theGaztransport & Technigaz Société Anonyme(EPA:GTT) share price has soared 225% in the last three years. Most would be happy with that. And in the last month, the share price has gained 1.7%. But this could be related to good market conditions -- stocks in its market are up 5.5% in the last month. See our latest analysis for Gaztransport & Technigaz Société Anonyme To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. During three years of share price growth, Gaztransport & Technigaz Société Anonyme achieved compound earnings per share growth of 6.8% per year. This EPS growth is lower than the 48% average annual increase in the share price. So it's fair to assume the market has a higher opinion of the business than it did three years ago. It is quite common to see investors become enamoured with a business, after a few years of solid progress. The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers). We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. Thisfreeinteractive report on Gaztransport & Technigaz Société Anonyme'searnings, revenue and cash flowis a great place to start, if you want to investigate the stock further. It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Gaztransport & Technigaz Société Anonyme, it has a TSR of 292% for the last 3 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence! It's nice to see that Gaztransport & Technigaz Société Anonyme shareholders have received a total shareholder return of 75% over the last year. That's including the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 20% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. Before forming an opinion on Gaztransport & Technigaz Société Anonyme you might want to consider the cold hard cash it pays as a dividend. Thisfreechart tracks its dividend over time. If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on FR exchanges. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
These Factors Make AGRANA Beteiligungs-Aktiengesellschaft (VIE:AGR) An Interesting Investment Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! AGRANA Beteiligungs-Aktiengesellschaft (VIE:AGR) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of AGR, it is a financially-sound company with a a strong history high-quality dividend payments, trading at a discount. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, take a look at thereport on AGRANA Beteiligungs-Aktiengesellschaft here. AGR's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. AGR's has produced operating cash levels of 0.33x total debt over the past year, which implies that AGR's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. AGR's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of AGR's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of AGR's peers, it is also trading at a value below those of similar sizes in asset terms. This supports the theory that AGR is potentially underpriced. Income investors would also be happy to know that AGR is one of the highest dividend payers in the market, with current dividend yield standing at 5.2%. AGR has also been regularly increasing its dividend payments to shareholders over the past decade. For AGRANA Beteiligungs-Aktiengesellschaft, there are three fundamental aspects you should further research: 1. Future Outlook: What are well-informed industry analysts predicting for AGR’s future growth? Take a look at ourfree research report of analyst consensusfor AGR’s outlook. 2. Historical Performance: What has AGR's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of AGR? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Karlovy Vary Film Review: Lara Click here to read the full article. Of all the ways to begin a movie, few are more cruel than presenting a character such as Lara Jenkins and, before the audience has even gotten the chance to know her, showing her wearily open the window to her depressing German flat, position a chair and prepare to jump. Then the doorbell rings. It is Laras 60th birthday, and judging from the way it starts, she does not see it as a special occasion. Director Jan-Ole Gerster makes quite the gamble opening Lara in this manner, but as the film unfolds, he demonstrates that his intention was never to shock, but to identify with this conflicted character, proceeding to create a portrait of remarkable depth over the span of the day that follows. A filmmaker once told me that, in his opinion, all movies are mysteries. Audiences go in knowing little or nothing, and they participate as the storyteller slowly reveals the clues to the world and its characters. In the case of Lara, there are two central questions: Why would Lara Jenkins want to commit suicide? And will she go through with it? Related stories Jan-Ole Gerster on 'Lara,' Starring Corinna Harfouch, Tom Schilling Karlovy Vary Film Review: 'Monsoon' EFP's Future Frames Spotlights New Talent at Karlovy Vary Festival Seven years after unveiling his earnest, honest and wonderfully relatable black-and-white debut, Oh Boy, at the Karlovy Vary Film Festival, Gerster delivers his long-awaited sophomore film. This far-different project also features actor Tom Schilling, who embodied the open face of an uncertain generation in Oh Boy, though his role is much smaller here. Instead, Gerster focuses on the harder-to-read adults who came before, casting actress Corinna Harfouch (Downfall) as Schillings mother, a severe and incredibly demanding civil servant who has dedicated more or less her entire existence to molding her son into a professional concert pianist. In that pursuit, Lara Jenkins has been successful although she would be the last to admit it. Viktor Jenkins is nothing short of a virtuoso, and tonight, on Laras birthday, he plans to debut an original composition. Lara buys up every remaining ticket in the auditorium and gives them out to her friends. Well, friends isnt the right word, for she has none. But Gerster allows us to discover that gradually, as Lara goes about awkwardly connecting with various key figures in her life, attempting with each exchange to control the dynamic and, more often than not, painfully failing in the process. Story continues There is the neighbor, a kindly but unsophisticated cab driver (André Jung), who recalls hearing the sound of tinkling from young Viktor through the walls years before. There are Laras former co-workers, who seem to fear her still, addressing her formally rather than by her first name (the films more familiar title suggests that Gerster is offering us a chance to know her better even than her peers do). There is her ex-husband (Rainer Bock) and also her mother (Gudrun Ritter), both of whom reprimand Lara for being too hard on her son. And there is the old piano teacher (Volkmar Kleinert), who carries the key to the entire psychological puzzle. Lara offers each of these people tickets to the performance a kind of reverse birthday present and a sign that she is proud of her sons artistic accomplishments, although she never comes right out and says it. When Viktors girlfriend Johanna (a violinist played by Mala Emde) tracks her down to ask a few words of advice, Lara says things no mother should about her son, and when Johanna hurries off, understandably upset, Lara does something shockingly cruel. She is, by almost any measure, a horrible person. Therein lies the third and most fascinating mystery of Lara: Why would this woman be deserving of her own movie? The farther Gerster goes with Lara Jenkins, the more we come to understand the depth and source of her damage. She is not unlike the sadomasochistic character Isabelle Huppert played in Michael Hanekes The Piano Teacher, who destroyed a young musicians prospects by placing shards of glass in her victims coat pockets. But the damage Lara inflicts here is entirely psychological, and Gersters approach is nowhere near as icy. There is, in fact, a warmth beneath the surface, emanating both from the filmmakers faith in the character and from the actress herself, less like Huppert than a German version of Mary Kay Place. Lara, we learn, could have been a piano prodigy, too, but she was never good enough. Or so she came to believe. Petrified of embarrassing her parents in public, she gave up before she had the chance, transferring all of her energy into grooming Viktor instead although her pattern, and the power she holds over the poor boy, is to let him excel until a point and then to pull the leash. So what does Viktors concert hold in store for Lara? Will he humiliate her, or perhaps himself? (Would that be so bad?) One of the many important life lessons Gerster includes in Lara is the notion that in order to accomplish anything of consequence, individuals must ignore the criticism and risk humiliation. (Even as a film critic someone whose métier appears to be that of picking apart the artistic achievements of others I embrace this philosophy wholeheartedly.) Criticism is not and ought not to be a deterrent to artistic risk. It should function to understand, to interpret and possibly to raise the bar, and artists would do well not to place too great a weight on what others think of their work. But how can they not when that feedback comes from a parent? If anyone in Lara might be expected to stand at an open window, thinking about throwing himself through it in desperation, it would be Viktor although that would be a different, more melodramatic kind of movie entirely. In any case, its unfair of Gerster to use the prospect of suicide as a dramatic device, and yet, he earns it multiple times over through the sensitivity that emerges over the course of the picture. There are powerful, profound moments in store for audiences here, mysteries to be resolved, and those of the damage passed down generations and of human behavior in particular for which we can never pretend to have a solution. Sign up for Varietys Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram .
How Should Investors Feel About Gyldendal A/S's (CPH:GYLD B) CEO Pay? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! In 1999 Stig Andersen was appointed CEO of Gyldendal A/S (CPH:GYLD B). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO. View our latest analysis for Gyldendal Our data indicates that Gyldendal A/S is worth ø905m, and total annual CEO compensation is ø5.7m. (This figure is for the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at ø5.3m. We looked at a group of companies with market capitalizations under ø1.3b, and the median CEO total compensation was ø2.7m. Thus we can conclude that Stig Andersen receives more in total compensation than the median of a group of companies in the same market, and of similar size to Gyldendal A/S. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous. You can see, below, how CEO compensation at Gyldendal has changed over time. On average over the last three years, Gyldendal A/S has shrunk earnings per share by 31% each year (measured with a line of best fit). In the last year, its revenue is down -1.1%. Unfortunately, earnings per share have trended lower over the last three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, shareholders might want to examinethis detailed historical graphof earnings, revenue and cash flow. Since shareholders would have lost about 10% over three years, some Gyldendal A/S shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously. We compared the total CEO remuneration paid by Gyldendal A/S, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group. Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years. Just as bad, share price gains for investors have failed to materialize, over the same period. In our opinion the CEO might be paid too generously! Shareholders may want tocheck for free if Gyldendal insiders are buying or selling shares. Important note:Gyldendal may not be the best stock to buy. You might find somethingbetterinthis list of interesting companies with high ROE and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Fred Savage's new show gets trashed by Twitter What Just Happened??! With Fred Savage premiered on Fox Sunday night. The show is loosely based on after-shows like Talking Dead , which follows episodes from the The Walking Dead franchise. However, What Just Happened??! Is an after-show for a non-existent show called The Flare. If the concept sounds confusing, that’s probably because it is — at least based on the Twitter response from viewers. The meta after-show doesn’t follow any existing after-show formats, instead borrowing elements from various talk shows and after-shows. What is this show about? Is this real? #WhatJustHappened pic.twitter.com/FeItD98PE2 — Ferg (@christoferguson) July 1, 2019 There was a field piece in which Savage unsuccessfully tried to interview Helen Mirren, who is a member of the non-existent cast. Savage wears Groucho Marx glasses and pretends to be delivering a pizza in hopes of meeting Mirren, but gets stopped by security. Rob Lowe makes an appearance for an in-studio re-enactment of a popular scene from The Flare . Lowe is supposed to be a super-fan, even though The Flare just premiered, but spends most of his screen time plugging his 2011 book, Stories I Only Tell My Friends . #WhatJustHappened I'm not saying it's unwatchable, but I am saying I turned the channel, sold my TVs and canceled cable to make sure I never accidentally stumble upon this show again. — Eric Decker (@ericldecker) July 1, 2019 For the love of god, WTF is this #WhatJustHappened nightmare? — Mercy MONTANA, Cheif Covfefe (@_Mercy_Montana) July 1, 2019 I expect any non-animated show Fox debuts on Sunday night to be bad but #WhatJustHappened was one of the worst things I've seen on television. Fred Savage deserves better. — Will Reynolds (@willinois) July 1, 2019 The Twitter thread for #whatjusthappened was rather one-sided, with the vast majority of viewers disliking the show. Story continues According to an interview Fred gave The Hollywood Reporter , this was one of new Fox Entertainment CEO Charlie Collier’s first green-lit shows. The show did not receive much marketing and was released during a traditionally slow time for television, which means they may have known the writing was on the wall. Perhaps the remaining episodes can win over viewers? What Just Happened??! With Fred Savage premiered Sunday at 9:30 p.m. on Fox. Watch as Emotional Kylie Jenner asks Kim Kardashian not to 'bully' Jordyn Woods: Read more from Yahoo Entertainment: Bethenny Frankel’s near-death experience: ‘if no one was with me I would have been dead’ Nicki Minaj reveals why she got fired by Red Lobster ‘Jeopardy!’ fans and Alex Trebek shocked by rare tiebreaker game Tell us what you think! Hit us up on Twitter , Facebook or Instagram , or leave your comments below. And check out our host, Kylie Mar, on Twitter , Facebook or Instagram . Want daily pop culture news delivered to your inbox? Sign up here for Yahoo Entertainment & Lifestyle's newsletter.
Here's What Autogrill S.p.A.'s (BIT:AGL) P/E Is Telling Us Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. We'll look at Autogrill S.p.A.'s (BIT:AGL) P/E ratio and reflect on what it tells us about the company's share price. Looking at earnings over the last twelve months,Autogrill has a P/E ratio of 34.12. That means that at current prices, buyers pay €34.12 for every €1 in trailing yearly profits. See our latest analysis for Autogrill Theformula for price to earningsis: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Autogrill: P/E of 34.12 = €9.22 ÷ €0.27 (Based on the trailing twelve months to December 2018.) A higher P/E ratio means that investors are payinga higher pricefor each €1 of company earnings. That is not a good or a bad thingper se, but a high P/E does imply buyers are optimistic about the future. Generally speaking the rate of earnings growth has a profound impact on a company's P/E multiple. Earnings growth means that in the future the 'E' will be higher. That means even if the current P/E is high, it will reduce over time if the share price stays flat. So while a stock may look expensive based on past earnings, it could be cheap based on future earnings. Autogrill's earnings per share fell by 29% in the last twelve months. But it has grown its earnings per share by 2.1% per year over the last three years. The P/E ratio essentially measures market expectations of a company. The image below shows that Autogrill has a higher P/E than the average (22.7) P/E for companies in the hospitality industry. Its relatively high P/E ratio indicates that Autogrill shareholders think it will perform better than other companies in its industry classification. The market is optimistic about the future, but that doesn't guarantee future growth. So investors should always consider the P/E ratio alongside other factors, such aswhether company directors have been buying shares. It's important to note that the P/E ratio considers the market capitalization, not the enterprise value. So it won't reflect the advantage of cash, or disadvantage of debt. In theory, a company can lower its future P/E ratio by using cash or debt to invest in growth. Spending on growth might be good or bad a few years later, but the point is that the P/E ratio does not account for the option (or lack thereof). Autogrill has net debt equal to 31% of its market cap. While that's enough to warrant consideration, it doesn't really concern us. Autogrill's P/E is 34.1 which is above average (15.8) in the IT market. With some debt but no EPS growth last year, the market has high expectations of future profits. Investors should be looking to buy stocks that the market is wrong about. If the reality for a company is better than it expects, you can make money by buying and holding for the long term. So thisfreevisualization of the analyst consensus on future earningscould help you make theright decisionabout whether to buy, sell, or hold. But note:Autogrill may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with strong recent earnings growth (and a P/E ratio below 20). We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Madonna Closes World Pride With Message About Gun Violence in America Click here to read the full article. “Fifty years, people,” Madonna ad-libbed on Sunday night in Manhattan to a crowd of 7,000 rapturous, mostly shirtless fans. The setting for this 30-minute concert? River Island stage on Pier 97 in Manhattan, better known as “Pride Island.” Madonna ’s performance of four songs closed a week of festivities for World Pride , which included the June 28 commemoration of the 50th anniversary of the Stonewall riots and the gay liberation movement. Related stories Ariana Grande, Lizzo, Meghan Trainor: Why Pride Concerts Book Straight Headliners Inside World Pride's Opening Ceremony: An LGBTQ Celebration With a Tinge of Politics Madonna Revives Nightmarish Imagery of Orlando Nightclub Massacre in New Music Video “Fifty years of revolution,” Madonna said in a short sermon that she delivered between songs. “Fifty years of freedom and fighting. Fifty years of putting up with discrimination, hatred and ignorance. Fifty years of not bowing down to fear. I’m so proud and honored to share this historical event with you. Fifty f–king years. It’s insane. Are you with me?” Among the hands waving in the air were such notable attendees as Donatella Versace, shimmying from a VIP booth, CNN president Jeff Zucker, comedian Billy Eichner and “Pose” actor Billy Porter, decked out in a peach-colored dressed and rainbow sneakers. “Since I came to New York as a wee-little girl, I have always been embraced by queer nation,” Madonna continued. “I always felt like an outsider, but you made me feel like an insider, like somebody. So you must know how much I love and appreciate everyone here from the LGBTQ community.” Although Madonna’s set was short, as is tradition for the annual circuit party on the pier, it did reveal some glimpses of what her upcoming “ Madame X ” tour (which starts in September) could entail. The night kicked off with a pre-recorded video that explained how Madonna’s alter ego, “Madame X” (the title of her most recent album, released on June 14), was a secret agent with a series of identities such as “a dancer, a professor, a head of state, a housekeeper, an equestrian, a prisoner, a student, a mother, a teacher, a nun, a singer, a saint, a whore…” Madonna then emerged onstage flanked by at least a dozen dancers, all dressed like her, in spy jackets. But only the real Madonna wore a sparkling patch over her left eye, as she launched into a performance of one of her greatest hits, “Vogue.” She followed the classic with a guitar-led rendition of “American Life,” before segueing into a partial costume change, kicking off her stiletto heels for a pair of combat boots that were presented to her by a man she called “leather daddy.” Story continues “You’ve seen me simulating masturbation all around the world,” Madonna said. “Why would you have a problem with me changing my shoes, right?” The second half of her act veered into the new material, which featured some of her more political messages and themes. Speaking to the crowd, Madonna said that the biggest problem in America is “gun safety and gun control which is disproportionately affecting marginalized communities.” That led to Madonna performing her song, “God Control,” which featured her background dancers dressed as police officers wielding combat shields. Her final song, “I Rise,” was accompanied by imagery of the young students who spearheaded the March for Our Lives movement, along with the the word “resist.” TRENDING ON VARIETY: Sign up for Variety’s Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram . View comments
Variety Wins Best Website and Entertainment Journalist of the Year at SoCal Journalism Awards Variety picked up nine prizes at the Los Angeles Press Clubs SoCal Journalism Awards Sunday at the Biltmore Hotel, including entertainment journalist of the year for chief film critic Owen Gleiberman and best website, traditional news organization, for Variety.com. Gleiberman also won for his memorial tribute Burt Reynolds: A Movie Star Who Refused to Take Stardom Seriously and for entertainment commentary for How Michael Moore Lost His Audience. More from Variety Variety Wins 22 National Arts & Entertainment Journalism Awards, Including Best Entertainment Website Variety Earns Record 121 Nominations From National Arts & Entertainment Journalism Awards Variety Nabs 7 Top Wins at L.A. Press Club's SoCal Awards Including Entertainment Journalist of the Year Chris Willman won in the category of reviews of theater and performing arts for his music reviews. Variety and Rolling Stones joint American Injustice special report won the award for Activism Journalism, while chief TV critic Daniel DAddario won in Political Commentary for The Kavanaugh Hearings Were Pitched at One Viewer Trump. Jenelle Riley won the prize for radio/podcast personality interview over 20 minutes for Stagecraft Special Edition: Tom Hiddleston Talks Shakespeare, Avengers. In the art and photo categories, creative director Robert Festino and photo director Jennifer Dorn won for cover art for the Power of Women Lena Waithe cover. Also at the awards, Brie Bryant and Jesse Daniels, the producers of Lifetime Televisions Surviving R. Kelly got a standing ovation after accepting the Presidents Award on behalf of the producing team. Bryant thanked the fearless journalists, reporters and members of the media who have been covering the Kelly story for many years. Henry Winkler won the Public Service award for contributions to civic life, with his Barry co-star Bill Hader presenting the honor. You are absolutely important, Winkler told the room of journalists. Story continues CBS2 Sports Anchor Jim Hill was honored with the Joseph M. Quinn Award for Lifetime Achievement, with Magic Johnson bestowing the award on the longtime broadcaster. The Daniel Pearl award for courage and integrity in journalism went to CNN senior international correspondent Nima Elbagir. Best of Variety Final Oscars Predictions: Animated Short - Will the Academy Go for 'The Boy' or 'Dicks?' Final Oscar Predictions: Documentary Short - Will the Academy Go for Malala or 'Elephants?' Final Oscars Predictions: Live Action Short - The Year of Ireland Could Continue With 'An Irish Goodbye' Winning Sign up for Varietys Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram . Click here to read the full article.
Will Autogrill S.p.A.'s (BIT:AGL) Earnings Grow Over The Next Year? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Based on Autogrill S.p.A.'s (BIT:AGL) earnings update in December 2018, it seems that analyst forecasts are substantially optimistic, with earnings expected to grow by a high double-digit of 73% in the upcoming year, against the previous 5-year average growth rate of 31%. By 2020, we can expect Autogrill’s bottom line to reach €118m, a jump from the current trailing-twelve-month of €69m. Below is a brief commentary on the longer term outlook the market has for Autogrill. For those keen to understand more about other aspects of the company, you canresearch its fundamentals here. View our latest analysis for Autogrill The 11 analysts covering AGL view its longer term outlook with a positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To understand the overall trajectory of AGL's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope. By 2022, AGL's earnings should reach €158m, from current levels of €69m, resulting in an annual growth rate of 24%. EPS reaches €0.60 in the final year of forecast compared to the current €0.27 EPS today. Margins are currently sitting at 1.3%, which is expected to expand to 2.9% by 2022. Future outlook is only one aspect when you're building an investment case for a stock. For Autogrill, I've compiled three important aspects you should further research: 1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Valuation: What is Autogrill worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? Theintrinsic value infographic in our free research reporthelps visualize whether Autogrill is currently mispriced by the market. 3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of Autogrill? Exploreour interactive list of stocks with large growth potentialto get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
AGES Industri AB (publ) (STO:AGES B): The Best Of Both Worlds Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! I've been keeping an eye on AGES Industri AB (publ) (STO:AGES B) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe AGES B has a lot to offer. Basically, it is a company that has been able to sustain great financial health, trading at an attractive share price. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the fullreport on AGES Industri here. With a debt-to-equity ratio of 32%, AGES B’s debt level is acceptable. This indicates a good balance between taking advantage of low cost funding through debt financing, but having enough financial flexibility and headroom to grow debt in the future. AGES B appears to have made good use of debt, producing operating cash levels of 0.67x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. AGES B is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts' consensus forecast growth be correct. Compared to the rest of the machinery industry, AGES B is also trading below its peers, relative to earnings generated. This further reaffirms that AGES B is potentially undervalued. For AGES Industri, I've put together three pertinent factors you should look at: 1. Future Outlook: What are well-informed industry analysts predicting for AGES B’s future growth? Take a look at ourfree research report of analyst consensusfor AGES B’s outlook. 2. Historical Performance: What has AGES B's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of AGES B? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Is Hexagon AB (publ) (STO:HEXA B) Investing Effectively In Its Business? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we are going to look at Hexagon AB (publ) (STO:HEXA B) to see whether it might be an attractive investment prospect. To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. Firstly, we'll go over how we calculate ROCE. Next, we'll compare it to others in its industry. Finally, we'll look at how its current liabilities affect its ROCE. ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. In general, businesses with a higher ROCE are usually better quality. In brief, it is a useful tool, but it is not without drawbacks. Renowned investment researcher Michael Mauboussinhas suggestedthat a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'. Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Hexagon: 0.11 = €951m ÷ (€10b - €1.6b) (Based on the trailing twelve months to March 2019.) Therefore,Hexagon has an ROCE of 11%. See our latest analysis for Hexagon When making comparisons between similar businesses, investors may find ROCE useful. We can see Hexagon's ROCE is around the 14% average reported by the Electronic industry. Regardless of where Hexagon sits next to its industry, its ROCE in absolute terms appears satisfactory, and this company could be worth a closer look. You can click on the image below to see (in greater detail) how Hexagon's past growth compares to other companies. When considering ROCE, bear in mind that it reflects the past and does not necessarily predict the future. Companies in cyclical industries can be difficult to understand using ROCE, as returns typically look high during boom times, and low during busts. This is because ROCE only looks at one year, instead of considering returns across a whole cycle. What happens in the future is pretty important for investors, so we have prepared afreereport on analyst forecasts for Hexagon. Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual. To counteract this, we check if a company has high current liabilities, relative to its total assets. Hexagon has total liabilities of €1.6b and total assets of €10b. As a result, its current liabilities are equal to approximately 16% of its total assets. Low current liabilities are not boosting the ROCE too much. This is good to see, and with a sound ROCE, Hexagon could be worth a closer look. Hexagon looks strong on this analysis,but there are plenty of other companies that could be a good opportunity. Here is afree listof companies growing earnings rapidly. If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Is Dr. Hönle AG (ETR:HNL) A Volatile Stock? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! If you own shares in Dr. Hönle AG (ETR:HNL) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. In finance, Beta is a measure of volatility. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. First, we have company specific volatility, which is the price gyrations of an individual stock. Holding at least 8 stocks can reduce this kind of risk across a portfolio. The other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. Some stocks are more sensitive to general market forces than others. Beta is a widely used metric to measure a stock's exposure to market risk (volatility). Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful. The first thing to understand about beta is that the beta of the overall market is one. A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one. View our latest analysis for Dr. Hönle As it happens, Dr. Hönle has a five year beta of 0.92. This is fairly close to 1, so the stock has historically shown a somewhat similar level of volatility as the market. While history does not always repeat, this may indicate that the stock price will continue to be exposed to market risk, albeit not overly so. Beta is worth considering, but it's also important to consider whether Dr. Hönle is growing earnings and revenue. You can take a look for yourself, below. With a market capitalisation of €327m, Dr. Hönle is a very small company by global standards. It is quite likely to be unknown to most investors. It doesn't take much money to really move the share price of a company as small as this one. That makes it somewhat unusual that it has a beta value so close to the overall market. Dr. Hönle has a beta value quite close to that of the overall market. That doesn't tell us much on its own, so it is probably worth considering whether the company is growing, if you're looking for stocks that will go up more than the overall market. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as Dr. Hönle’s financial health and performance track record. I highly recommend you dive deeper by considering the following: 1. Future Outlook: What are well-informed industry analysts predicting for HNL’s future growth? Take a look at ourfree research report of analyst consensusfor HNL’s outlook. 2. Past Track Record: Has HNL been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look atthe free visual representations of HNL's historicalsfor more clarity. 3. Other Interesting Stocks: It's worth checking to see how HNL measures up against other companies on valuation. You could start with thisfree list of prospective options. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Hong Kong protests: Police officers injured by 'liquid' thrown during violent clashes on handover anniversary Hong Kong police using riot shields and pepper spray have clashed with protesters in the worst violence since last months huge demonstrations, as the territory marks the 22nd anniversary of the handover to China from British rule. Protesters attempted to break into the headquarters of the Hong Kong Legislative Council using a metal trolley as a battering ram, while a police statement said 13 officers experienced difficulty in breathing and had swollen and itchy skin after having an unspecified liquid thrown on them. The 1 July march has become an annual tradition, showing defiance towards what critics say is the encroachment of Hong Kongs autonomy by mainland China. But the clashes started particularly early on Monday amid a backdrop of anger against city leader Carrie Lam s attempts to force through an unpopular extradition bill. Police fought to keep back hundreds of helmeted protesters who tried to advance down closed streets towards the official harbour-front venue marking the anniversary. Attendants were asked to be seated inside a huge convention centre rather than gather outside as they have in previous years, with the government blaming light rain for the change. During the event, Chinese and Hong Kong flags were raised together and two helicopters and a small flotilla passed by. In a five-minute speech, Hong Kong chief executive Ms Lam said the protests of recent weeks had taught her she needs to listen better to the youth, and to people in general. "This has made me fully realise that I, as a politician, have to remind myself all the time of the need to grasp public sentiments accurately, she said. Ms Lam insisted her government had good intentions, but said: I will learn the lesson and ensure that the government's future work will be closer and more responsive to the aspirations, sentiments and opinions of the community. Security guards pushed pro-democracy lawmaker Helena Wong out of the room as she walked backward shouting at Ms Lam to resign and withdraw the "evil" extradition legislation. She later told reporters she was voicing the grievances and opinions of the protesters, who could not get into the event. Story continues Perhaps the most dramatic scenes were at the Legislative Council building, however, where police in full riot gear stood lined up inside the plate glass windows as protesters tried to gain entry, repeatedly ramming and cracking the windows with anything they could find. Fearing a repeat of the heavy-handed police tactics from the bloody 12 June protest, pro-democracy politicians urged the public to demonstrate peacefully. Opposition politicians including Lam Cheuk-ting, Hui Chi-fung, Roy Kwong Chun-yu and HK First's Claudia Mo were at the scene at the Council headquarters, attempting to discourage the crowd from violence, CNN reported. Police, who have been working to secure the harbour front since 4am, have requested protest leaders cancel or postpone the annual handover anniversary march scheduled for the afternoon, with attendance expected to be swelled by the recent unrest. That request has been denied.
A fragile economy leaves Nirmala Sitharaman with little room to dole out goodies The last budget of a government’s tenure generally tends to be populist, while the first is usually a serious exercise in addressing economic challenges. Indian finance minister Nirmala Sitharaman is likely to follow this path when she presents the second Narendra Modi government’s first budget on July 5. It would be unrealistic to expect concessions or tax reliefs from her. Besides, she has some major patchwork to do on the economy. Jeffrey Epstein’s fortune is built on fraud, a former mentor says In dire straits The Indian economy is in a fragile state. GDP growth slumped to 5.8% in the January-March period of financial year 2019, the lowest in 20 quarters. Growth for the full year, at 6.8%, was also a five-year low. All important indicators of economic activity like the dipping index of industrial production (IIP) and plummeting automobile sales confirm the slowdown. Hong Kong’s protesters put AirDrop to ingenious use to breach China’s Firewall The recent periodic labour force survey (PLFS) report of India’s national sample survey office (NSSO) points to the prevailing high levels of unemployment in the country. India’s non-banking financial companies (NBFCs), or shadow banks, which have been driving consumption in many consumer durable segments, are also facing liquidity issues . The government’s record on fiscal prudence, too, is patchy. The fiscal deficit, or the difference between revenues and receipts, of the centre and states stands at 7% of the GDP. At around 70% , the government’s debt-to-GDP ratio is also very high. This macro economic backdrop demands measures to boost growth. There are some wrinkles, in particular, that can be ironed out. Incentivise banking: The central bank has been making the right moves by trimming key interest rates . Yet, for the Reserve Bank of India’s (RBI) policy moves to be effective, banks must transmit the rate cuts to the end consumers. Story continues The major constraint in monetary transmission is that lenders are faced with anaemic levels of deposit growth. Bank deposits compete with the government’s small savings schemes such as the National Savings Certificate (NSC) and Public Provident Fund (PPF), which tend to be more attractive thanks to their higher returns. This anomaly needs to be addressed in the forthcoming budget by incentivising bank deposits. Maintain fiscal prudence: As things stand, there is no major room for fiscal stimulus in the upcoming budget. The shortfall in tax collections in financial year 2019, as per the government’s revised estimates, is around Rs1.6 lakh crore ($23 billion). Also, the ambitious targets for revenue growth in the current financial year are unlikely to be met. Therefore, any form of fiscal stimulus, which will worsen fiscal deficit, is not desirable. Focus on structural reforms: The budget and the policy initiatives that follow should ideally focus on structural reforms that raise factor productivity, or the net economic output. Labour and land reforms brook no delay. China’s rising wages are forcing it to move away from labour-intensive manufacturing practices in sectors like textiles. India’s rigid labour laws, on the other hand, are standing in the way of growth. Additionally, the clean up of the banking and real estate sectors with reforms like the Insolvency and Bankruptcy Code (IBC) and Real Estate Regulation Act (RERA) should continue. It is important to kick start economic growth and revive the economy’s animal spirits. Sitharaman can send the right message through an imaginative budget. We welcome your comments at ideas.india@qz.com. Sign up for the Quartz Daily Brief , our free daily newsletter with the world’s most important and interesting news. More stories from Quartz: Tip your delivery worker in cash, not via an app A “Go Back to Africa” media campaign uses AI to boost African American tourism
Is Amsterdam Commodities N.V. (AMS:ACOMO) A Financially Sound Company? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Amsterdam Commodities N.V. (AMS:ACOMO) is a small-cap stock with a market capitalization of €461m. While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. Why is it important? Understanding the company's financial health becomes vital, since poor capital management may bring about bankruptcies, which occur at a higher rate for small-caps. The following basic checks can help you get a picture of the company's balance sheet strength. However, this is just a partial view of the stock, and I suggest youdig deeper yourself into ACOMO here. ACOMO has built up its total debt levels in the last twelve months, from €80m to €93m – this includes long-term debt. With this rise in debt, ACOMO's cash and short-term investments stands at €957k to keep the business going. On top of this, ACOMO has produced cash from operations of €19m during the same period of time, resulting in an operating cash to total debt ratio of 21%, meaning that ACOMO’s operating cash is sufficient to cover its debt. At the current liabilities level of €146m, the company has been able to meet these commitments with a current assets level of €248m, leading to a 1.7x current account ratio. The current ratio is calculated by dividing current assets by current liabilities. Generally, for Consumer Retailing companies, this is a reasonable ratio since there's a sufficient cash cushion without leaving too much capital idle or in low-earning investments. ACOMO is a relatively highly levered company with a debt-to-equity of 48%. This is somewhat unusual for small-caps companies, since lenders are often hesitant to provide attractive interest rates to less-established businesses. We can check to see whether ACOMO is able to meet its debt obligations by looking at the net interest coverage ratio. A company generating earnings before interest and tax (EBIT) at least three times its net interest payments is considered financially sound. In ACOMO's, case, the ratio of 10.77x suggests that interest is comfortably covered, which means that debtors may be willing to loan the company more money, giving ACOMO ample headroom to grow its debt facilities. ACOMO’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow. Since there is also no concerns around ACOMO's liquidity needs, this may be its optimal capital structure for the time being. I admit this is a fairly basic analysis for ACOMO's financial health. Other important fundamentals need to be considered alongside. I suggest you continue to research Amsterdam Commodities to get a better picture of the small-cap by looking at: 1. Valuation: What is ACOMO worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? Theintrinsic value infographic in our free research reporthelps visualize whether ACOMO is currently mispriced by the market. 2. Historical Performance: What has ACOMO's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity. 3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Amsterdam Commodities N.V. (AMS:ACOMO): A Fundamentally Attractive Investment Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Amsterdam Commodities N.V. (AMS:ACOMO), it is a notable dividend payer that has been able to sustain great financial health over the past. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, read the fullreport on Amsterdam Commodities here. ACOMO's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. ACOMO seems to have put its debt to good use, generating operating cash levels of 0.21x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows. Income investors would also be happy to know that ACOMO is a great dividend company, with a current yield standing at 5.3%. ACOMO has also been regularly increasing its dividend payments to shareholders over the past decade. For Amsterdam Commodities, there are three important aspects you should further examine: 1. Future Outlook: What are well-informed industry analysts predicting for ACOMO’s future growth? Take a look at ourfree research report of analyst consensusfor ACOMO’s outlook. 2. Historical Performance: What has ACOMO's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of ACOMO? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Is Sunrise Communications Group AG's (VTX:SRCG) 8.3% ROE Strong Compared To Its Industry? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. By way of learning-by-doing, we'll look at ROE to gain a better understanding of Sunrise Communications Group AG (VTX:SRCG). Sunrise Communications Group has a ROE of 8.3%, based on the last twelve months. That means that for every CHF1 worth of shareholders' equity, it generated CHF0.083 in profit. Check out our latest analysis for Sunrise Communications Group Theformula for return on equityis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Sunrise Communications Group: 8.3% = CHF125m ÷ CHF1.5b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. It is all the money paid into the company from shareholders, plus any earnings retained. You can calculate shareholders' equity by subtracting the company's total liabilities from its total assets. ROE measures a company's profitability against the profit it retains, and any outside investments. The 'return' is the yearly profit. That means that the higher the ROE, the more profitable the company is. So, all else equal,investors should like a high ROE. That means ROE can be used to compare two businesses. By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. The image below shows that Sunrise Communications Group has an ROE that is roughly in line with the Telecom industry average (10%). That isn't amazing, but it is respectable. ROE can give us a view about company quality, but many investors also look to other factors, such as whether there are insiders buying shares. I will like Sunrise Communications Group better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying. Most companies need money -- from somewhere -- to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. That will make the ROE look better than if no debt was used. Sunrise Communications Group clearly uses a significant amount of debt to boost returns, as it has a debt to equity ratio of 1.04. Its ROE isn't too bad, but it would probably be very disappointing if the company had to stop using debt. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time. Return on equity is one way we can compare the business quality of different companies. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have the same ROE, then I would generally prefer the one with less debt. But when a business is high quality, the market often bids it up to a price that reflects this. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So you might want to check this FREEvisualization of analyst forecasts for the company. Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
OPEC extends oil cut to prop up prices as economy weakens By Bozorgmehr Sharafedin, Alex Lawler and Rania El Gamal VIENNA (Reuters) - OPEC agreed on Monday to extend oil supply cuts until March 2020 as the group's members overcame their differences in order to prop up the price of crude amid a weakening global economy and soaring U.S. production. The move will likely anger U.S. President Donald Trump, who has demanded OPEC leader Saudi Arabia supply more oil and help reduce prices at the pump if Riyadh wants U.S. military support in its standoff with arch-rival Iran. Benchmark Brent crude <LCOc1> has climbed more than 25% so far this year after the White House tightened sanctions on OPEC members Venezuela and Iran, slashing their oil exports. OPEC and its allies led by Russia have been reducing oil output since 2017 to prevent prices from sliding amid soaring production from the United States, which has overtaken Russia and Saudi Arabia to become the world's top producer. Fears about weaker global demand as a result of a U.S.-China trade spat have added to the challenges faced by the 14-nation Organization of the Petroleum Exporting Countries. "Saudi Arabia is doing its best to achieve oil prices at $70 per barrel despite what Trump wants. But they haven’t accomplished that even with Iranian and Venezuelan oil exports dropping. And the reasons for that are weak demand and U.S. shale growth," said Gary Ross from Black Gold Investors. The United States, also the world's largest oil consumer, is not a member of OPEC, nor is it participating in the supply pact. A jump in oil prices might lead to costlier gasoline, a key issue for Trump as he seeks re-election next year. Brent initially rose as much as $2 on Monday towards $67 per barrel as traders cited OPEC's resolve to curb output. It later pared gains to trade at $65. [O/R] GEOPOLITICAL RISK The OPEC meeting on Monday will be followed by talks with Russia and other allies, a grouping known as OPEC+, on Tuesday. Russian President Vladimir Putin said on Saturday he had agreed with Saudi Arabia to extend global output cuts of 1.2 million barrels per day, or 1.2% of world demand, until December 2019 or March 2020. Oil prices could stall as a slowing global economy squeezes demand and U.S. oil floods the market, a Reuters poll of analysts found. Saudi Energy Minister Khalid al-Falih said he was growing more positive about the global economy after a G20 meeting of world leaders over the weekend. "The global economy in the second half of the year looks a lot better today than it did a week ago because of the agreement reached between President Trump and President Xi (Jinping) of China and the truce they have reached in their trade and the resumption of serious trade negotiations," Falih said. He said Saudi Arabia would continue reducing supplies to customers in July. He also said he believed U.S. oil output would peak and then plateau, just like the North Sea or other, older oil regions. "The reason for extending the deal by nine months instead of six is to assure the markets that the deal will remain in place through the seasonally soft demand period in the first quarter of 2020," said Amrita Sen, co-founder of Energy Aspects. The meeting on Monday continued for six hours as ministers discussed a charter for long-term cooperation with non-OPEC producers. OPEC sources said Iran and Saudi Arabia were arguing about the content of a draft but finally agreed the details despite Tehran's criticism of Putin effectively announcing the deal ahead of the OPEC meeting. OPEC also confirmed its secretary-general, Mohammad Barkindo, would serve another three-year term. Iran's exports plummeted to 0.3 million barrels per day in June from as much as 2.5 million bpd in April 2018 due to Washington's fresh sanctions. Oil output in OPEC's exempt nations: https://tmsnrt.rs/2Fx7Lcc The sanctions are putting Iran under unprecedented pressure. Even in 2012, when the European Union joined U.S. sanctions on Tehran, the country's exports stood at around 1 million bpd. Oil represents the lion's share of Iran's budget revenues. Washington has said it wants to change what it calls a “corrupt” regime in Tehran. Iran has denounced the sanctions as illegal and says the White House is run by “mentally retarded” people. "Worsening tensions between the U.S. and Iran add potential for oil price volatility that could be tricky for OPEC members to manage," said Ann-Louise Hittle, vice president, macro oils, at consultancy Wood Mackenzie. OPEC will hold its next meeting on Dec. 5. (Additional reporting by Olesya Astakhova, Ahmad Ghaddar, Shadia Nasralla and Vladimir Soldatkin; Writing by Dmitry Zhdannikov; Editing by Dale Hudson)
Kawhi Leonard should sign with the Lakers This is not about what Kawhi Leonard will do. This is about what Kawhi Leonard should do. And with the dust settling on a wild opening salvo of NBA free agency, the path for the reigning NBA Finals MVP is clear. Join the Los Angeles Lakers. It wouldnt be the expected move. It wouldnt be the popular move. But it would be the absolute correct move for a player with an unprecedented opportunity to build an all-time NBA legacy. [Free agency updates: Keep track of the moves, rumors, cap space and more ] Kawhi declined free agency meetings Sunday For much of the lead-up to free agency, the belief has remained that Leonard would stay in Toronto or join the Los Angeles Clippers. He also reportedly planned meetings with the Lakers and New York Knicks, with league sources telling Yahoo Sports Chris Haynes last week that NBA executives believe Toronto was the favorite to sign Leonard to a new deal . He declined to take meetings on Sunday , and in typical Kawhi fashion will do things his way. Re-upping with the Raptors team that he just led to its first NBA championship would be a cool story. But joining forces with LeBron James and Anthony Davis in Los Angeles is a better one for Kawhi, at least. The path for Kawhi Leonard is clear. Whether he takes it is not. (Reuters) He loves L.A. As with most things Kawhi, little is actually known about where hes leaning in free agency. Its widely reported that he yearns for his Southern California roots where he grew up and played college ball at San Diego State. The Clippers and the Lakers both have the cap space to sign Leonard, but many have speculated that Leonard fresh off his second NBA Finals MVP has little desire to share the spotlight and the ball with James. To be fair, its hard to imagine Leonard not dominating the basketball. But even if that would be the case and even if that is a concern for Leonard its a short-term concern. Shared spotlight with LeBron wouldnt last long Even though it seems like Leonards been in the league and winning championships forever, he just turned 28 years old on Saturday. His prime is just getting warmed up. Story continues James will be 35 in December with three years remaining on his Lakers deal on what is most clearly the downside of his career. If sharing the ball and ego are concerns for Leonard, they wouldnt be for long. And the short-term counterargument is completing arguably the most imposing trio of NBA talent in NBA history to immediately compete for championships. Some may criticize him for joining a superteam like Durant did when he left the Oklahoma City Thunder for the Golden State Warriors. But unlike Durant, who left the Thunder to join the team he couldnt beat, Leonards legacy is already secure. He already has two rings and two Finals MVPs. Also, he doesnt care what you think. Upside is with AD The long-term upside for Leonard is playing through his prime with a 26-year-old Davis on the NBAs glamour franchise. And doing it at home. Unlike James, Davis isnt a ball-dominant star. Leonard and Davis are complementary fits with All-NBA talent just starting to play their best basketball. Sure, Lakers management is incompetent. But theyre still the Lakers. No other team presents the opportunity of being mentioned alongside Kareem, Magic and Kobe. Its massive upside. Will the feel-good of an NBA championship override Kawhi Leonard's desire to go home? (Getty) Clippers whiffed on another top free agent Meanwhile, the Clippers have opened the summer with a giant dud. Starting free agency with a pair of max contract slots, theyve managed to re-sign Patrick Beverley . And Leonard is the last max-contract level player on the open market. Gone is Kevin Durant. Gone is Klay Thompson. Gone is Jimmy Butler. The Clippers did well to compete last season after clearing their roster and cap space in anticipation of a big summer only to do nothing with it in free agencys opening, most critical day. Knicks a non-factor Leonards interest in the Knicks was reportedly tied to playing alongside Durant. But Durant is a Net . And the Knicks had the most disappointing day of free agency, securing the likes of Julius Randle and Taj Gibson instead of Durant and Irving. Theres nothing remaining in New York for Leonard. Torontos case is a good one, but ... Which leaves the Raptors. Its a team he just won a title with in a city that fell in love with him. He could sign with the Raptors and finish his career there without another championship, and his legacy would be secure. Hed be a champion, a team icon and a first-ballot Hall of Famer. It would be a great story. It would also be selling his opportunity short. Pascal Siakam and Kyle Lowry are nice players and valuable pieces who would give the Raptors an opportunity to continue to compete in the Eastern Conference. James and Davis are two of the most transcendent talents in the history of the game. And they play in the place that Leonard loves, where the winters are warm and the basketball legacy is unparalleled. Re-signing with the Raptors would be a great story. But for Leonard, it would be the wrong one. More from Yahoo Sports: World Cup: Englands coach praises Rapinoe's character Mets put living players in In Memoriam montage Gronk's physical appearance sends a clear message about retirement Here are the full rosters for the 2019 MLB All-Star Game
Does The AGES Industri AB (publ) (STO:AGES B) Share Price Tend To Follow The Market? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Anyone researching AGES Industri AB (publ) (STO:AGES B) might want to consider the historical volatility of the share price. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. The first category is company specific volatility. This can be dealt with by limiting your exposure to any particular stock. The other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. Some stocks see their prices move in concert with the market. Others tend towards stronger, gentler or unrelated price movements. Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider. To make good use of it you must first know that the beta of the overall market is one. Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market. See our latest analysis for AGES Industri Zooming in on AGES Industri, we see it has a five year beta of 0.83. This is below 1, so historically its share price has been rather independent from the market. This suggests that including it in your portfolio will reduce volatility arising from broader market movements, assuming your portfolio's weighted average beta is higher than 0.83. Beta is worth considering, but it's also important to consider whether AGES Industri is growing earnings and revenue. You can take a look for yourself, below. AGES Industri is a noticeably small company, with a market capitalisation of kr492m. Most companies this size are not always actively traded. Companies with market capitalisations around this size often show poor correlation with the broader market because market volatility is overshadowed by company specific events, or other factors. It's worth checking to see how often shares are traded, because very small companies with very low beta values are often only thinly traded. The AGES Industri doesn't usually show much sensitivity to the broader market. This could be for a variety of reasons. Typically, smaller companies have a low beta if their share price tends to move a lot due to company specific developments. Alternatively, an strong dividend payer might move less than the market because investors are valuing it for its income stream. In order to fully understand whether AGES B is a good investment for you, we also need to consider important company-specific fundamentals such as AGES Industri’s financial health and performance track record. I highly recommend you dive deeper by considering the following: 1. Future Outlook: What are well-informed industry analysts predicting for AGES B’s future growth? Take a look at ourfree research report of analyst consensusfor AGES B’s outlook. 2. Past Track Record: Has AGES B been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look atthe free visual representations of AGES B's historicalsfor more clarity. 3. Other Interesting Stocks: It's worth checking to see how AGES B measures up against other companies on valuation. You could start with thisfree list of prospective options. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
How Did Sunrise Communications Group AG's (VTX:SRCG) 8.3% ROE Fare Against The Industry? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. To keep the lesson grounded in practicality, we'll use ROE to better understand Sunrise Communications Group AG (VTX:SRCG). Our data showsSunrise Communications Group has a return on equity of 8.3%for the last year. One way to conceptualize this, is that for each CHF1 of shareholders' equity it has, the company made CHF0.083 in profit. Check out our latest analysis for Sunrise Communications Group Theformula for ROEis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Sunrise Communications Group: 8.3% = CHF125m ÷ CHF1.5b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. It is all the money paid into the company from shareholders, plus any earnings retained. Shareholders' equity can be calculated by subtracting the total liabilities of the company from the total assets of the company. ROE measures a company's profitability against the profit it retains, and any outside investments. The 'return' is the profit over the last twelve months. That means that the higher the ROE, the more profitable the company is. So, all else being equal,a high ROE is better than a low one. That means ROE can be used to compare two businesses. One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. The image below shows that Sunrise Communications Group has an ROE that is roughly in line with the Telecom industry average (10%). That's not overly surprising. ROE doesn't tell us if the share price is low, but it can inform us to the nature of the business. For those looking for a bargain, other factors may be more important. For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket. Virtually all companies need money to invest in the business, to grow profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking. It's worth noting the significant use of debt by Sunrise Communications Group, leading to its debt to equity ratio of 1.04. Its ROE isn't too bad, but it would probably be very disappointing if the company had to stop using debt. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time. Return on equity is useful for comparing the quality of different businesses. Companies that can achieve high returns on equity without too much debt are generally of good quality. All else being equal, a higher ROE is better. But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So you might want to take a peek at thisdata-rich interactive graph of forecasts for the company. Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Taylor Swift's Ex-Record Company Boss Says She Is Lying, She Knew About Deal Taylor Swift’s ex-boss is calling her out, saying that by claiming she was shocked by the sale of her master's to Justin Bieber's manager Scooter Braun, she is a flat out lying. Big Machine's head honcho Scott Borchetta posted a reaction online to Taylor Swift's announcement. In the post, he was not only specific, he actually posted a picture of the proof. The contract was a part of a new contract that Taylor and her team were negotiating with the record company. According to Taylor, she had been with this company since she was a teenager. It is clear in the document Taylor had the right to get all of her music. Scott also posted a message sent to him, by Taylor, acknowledging what was happening in her contract period. Then to make his point clearer, he also published a note he sent to her, that clearly tells her what is about to happen and so she hears it from him first. This is in direct response to Taylor's earlier claim, "For years I asked, pleaded for a chance to own my work," Swift began. "Instead I was given an opportunity to sign back up to Big Machine Records and ‘earn’ one album back at a time, one for every new one I turned in. I walked away because I knew once I signed that contract, Scott Borchetta would sell the label, thereby selling me and my future. I had to make the excruciating choice to leave behind my past. Music I wrote on my bedroom floor and videos I dreamed up and paid for from the money I earned playing in bars, then clubs, then arenas, then stadiums." Scott claims this contract proves that is not true. Just like any other business deal this was just a re-negotiating of her contract and they offered her a great deal. Scott says in his post, "We are an independent record company. We do not have tens of thousands of artists and recordings. My offer to Taylor, for the size of our company, was extraordinary." The record honcho also claims Taylor's dad knew all about the deal, saying, "Scott Swift, was a shareholder in Big Machine Records, LLC. We first alerted all of the shareholders on Thursday, June 20th for an official shareholder’s call scheduled for Tuesday, June 25th. On the 6/25 call the shareholders were made aware of the pending deal with Ithaca Holdings and had 3 days to go over all of the details of the proposed transaction." Story continues As we reported, Taylor Swift called out her ex-boss, Scooter, Kanye and Kim Kardashian after she claimed her music masters were sold out from under her. She put it like this, Scooter has stripped me of my life’s work, that I wasn’t given an opportunity to buy. Essentially, my musical legacy is about to lie in the hands of someone who tried to dismantle it...Kim Kardashian orchestrated an illegally recorded snippet of a phone call to be leaked and then Scooter got his two clients together to bully me online about it (see photo above). Or when his client, Kanye West, organized a revenge porn music video which strips my body naked." Our sources say the the three sides, including Scooter, have not spoken and its unclear if this mess can be cleared up any time soon. Here Is The Statement In Its Entirety So, it’s time for some truth… In regard to a post earlier today from Taylor, it’s time to set some things straight. Taylor’s dad, Scott Swift, was a shareholder in Big Machine Records, LLC. We first alerted all of the shareholders on Thursday, June 20th for an official shareholder’s call scheduled for Tuesday, June 25th. On the 6/25 call the shareholders were made aware of the pending deal with Ithaca Holdings and had 3 days to go over all of the details of the proposed transaction. We then had a final call on Friday, June 28th in which the transaction passed with a majority vote and 3 of the 5 shareholders voting ‘yes’ with 92% of the shareholder’s vote. Out of courtesy, I personally texted Taylor at 9:06pm, Saturday, June 29th to inform her prior to the story breaking on the morning of Sunday, June 30th so she could hear it directly from me. I guess it might somehow be possible that her dad Scott, 13 Management lawyer Jay Schaudies (who represented Scott Swift on the shareholder calls) or 13 Management executive and Big Machine LLC shareholder Frank Bell (who was on the shareholder calls) didn’t say anything to Taylor over the prior 5 days. I guess it’s possible that she might not have seen my text. But, I truly doubt that she “woke up to the news when everyone else did”. I am attaching a few very important deal points in what was part of our official last offer to Taylor Swift to remain at Big Machine Records. Her 13 Management team and attorney Don Passman went over this document in great detail and reported the terms to her in great detail. Taylor and I then talked through the deal together. As you will read, 100% of all Taylor Swift assets were to be transferred to her immediately upon signing the new agreement. We were working together on a new type of deal for our new streaming world that was not necessarily tied to ‘albums’ but more of a length of time. We are an independent record company. We do not have tens of thousands of artists and recordings. My offer to Taylor, for the size of our company, was extraordinary. But it was also all I could offer as I am responsible for dozens of artists’ careers and over 120 executives and their families. Taylor and I remained on very good terms when she told me she wanted to speak with other record companies and see what was out there for her. I never got in her way and wished her well. The morning that the new Taylor/UMG announcement was going to be made, she texted me shortly before letting me know that the announcement was coming in a few minutes. As we both posted on our socials, we saluted each other and cheered each other on. Taylor had every chance in the world to own not just her master recordings, but every video, photograph, everything associated to her career. She chose to leave. As to her comments about ‘being in tears or close to it’ anytime my new partner Scooter Braun’s name was brought up, I certainly never experienced that. Was I aware of some prior issues between Taylor and Justin Bieber? Yes. But there were also times where Taylor knew that I was close to Scooter and that Scooter was a very good source of information for upcoming album releases, tours, etc, and I’d reach out to him for information on our behalf. Scooter was never anything but positive about Taylor. He called me directly about Manchester to see if Taylor would participate (she declined).He called me directly to see if Taylor wanted to participate in the Parkland March (she declined). Scooter has always been and will continue to be a supporter and honest custodian for Taylor and her music.
Mazda Limited (NSE:MAZDALTD) Insiders Increased Their Holdings Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in Mazda Limited ( NSE:MAZDALTD ). What Is Insider Buying? It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information. Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.' See our latest analysis for Mazda Mazda Insider Transactions Over The Last Year MD & Executive Director Sorab Mody made the biggest insider purchase in the last 12 months. That single transaction was for ₹9.8m worth of shares at a price of ₹393 each. So it's clear an insider wanted to buy, at around the current price, which is ₹398. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Mazda insider decided to buy shares at close to current prices. Sorab Mody was the only individual insider to buy over the year. Sorab Mody bought a total of 45000 shares over the year at an average price of ₹366. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below! NSEI:MAZDALTD Recent Insider Trading, July 1st 2019 There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying. Insider Ownership of Mazda Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Mazda insiders own 59% of the company, currently worth about ₹936m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders. Story continues So What Do The Mazda Insider Transactions Indicate? There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Mazda insiders think the business has merit. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Mazda . If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. View comments
Countdown's Rachel Riley marries Strictly dance partner Pasha Kovalev in Las Vegas Rachel Riley and Pasha Kovalev have eloped to Las Vegas (Credit: PA) Rachel Riley and Pasha Kovalev have eloped to Las Vegas and married in a secret ceremony. The 33-year-old Countdown presenter is pregnant with her first child and the couple - who met when they were paired on Strictly Come Dancing in 2013 - had previously said they had no plans to tie the knot. But Riley shared a picture of the happy couple in front of a flower carousel in Sin City captioned: “Introducing the new Mr and Mrs Kovalev. We both said yes.” View this post on Instagram A post shared by Rachel Riley (@rachelrileyrr) on Jun 30, 2019 at 3:31pm PDT A marriage certificate obtained by The Sun newspaper shows the couple - who recently starred together on Celebrity Gogglebox - were married on Friday. Read more: 'Strictly's Pasha Kovalev fears for 'personal' photos of Rachel Riley after phone stolen Riley announced she and Kovalev, 39, were expecting their first child on social media last month, in the form of a Countdown conundrum that read “R TINY MATE”. The baby is due in December. View this post on Instagram A post shared by Rachel Riley (@rachelrileyrr) on May 24, 2019 at 8:16am PDT When Riley competed on Strictly Come Dancing in 2013 she was married to Jamie Gilbert who she met when they were both studying at Oxford University. But like so many, they fell victim to the ‘Strictly Curse’ announcing they were separating in November 2013, just a few months after she met her professional dance partner Kovalev. Read more: Rachel Riley 'moved to tears' over support in fighting back at anti-semitic trolls Russian-born dancer Kovalev - who announced in February he is quitting BBC dance show Strictly - was recently the victim of a mobile phone mugging outside the Sadler’s Wells Theatre in North London. He is reported to be concerned for the safety of personal photographs he had of Riley on the device. A witness said: “One second he was outside on the phone, the next moment the moped pair drove at him aggressively and totally disorientated him. Story continues “They mounted the pavement and in a flash his phone was out of his hand. He was knocked off balance and very upset. As soon as it dawned on him what had happened he told people around him ‘The mobile is unlocked’.” Watch the latest videos from Yahoo UK
You Have To Love Uflex Limited's (NSE:UFLEX) Dividend Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Is Uflex Limited (NSE:UFLEX) a good dividend stock? How can we tell? Dividend paying companies with growing earnings can be highly rewarding in the long term. Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. A 0.8% yield is nothing to get excited about, but investors probably think the long payment history suggests Uflex has some staying power. When buying stocks for their dividends, you should always run through the checks below, to see if the dividend looks sustainable. Click the interactive chart for our full dividend analysis Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. Looking at the data, we can see that 4.6% of Uflex's profits were paid out as dividends in the last 12 months. We like this low payout ratio, because it implies the dividend is well covered and leaves ample opportunity for reinvestment. As Uflex has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA measures total debt load relative to company earnings (lower = less debt), while net interest cover measures the ability to pay interest on the debt (higher = greater ability to pay interest costs). Uflex has net debt of 1.45 times its EBITDA, which we think is not too troublesome. Net interest cover can be calculated by dividing earnings before interest and tax (EBIT) by the company's net interest expense. With EBIT of 2.79 times its interest expense, Uflex's interest cover is starting to look a bit thin. We update our data on Uflex every 24 hours, so you can always getour latest analysis of its financial health, here. One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. Uflex has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. During the past ten-year period, the first annual payment was ₹4.00 in 2009, compared to ₹2.00 last year. The dividend has shrunk at around 6.7% a year during that period. We struggle to make a case for buying Uflex for its dividend, given that payments have shrunk over the past ten years. Examining whether the dividend is affordable and stable is important. However, it's also important to assess if earnings per share (EPS) are growing. Over the long term, dividends need to grow at or above the rate of inflation, in order to maintain the recipient's purchasing power. Earnings have grown at around 9.3% a year for the past five years, which is better than seeing them shrink! With a decent amount of growth and a low payout ratio, we think this bodes well for Uflex's prospects of growing its dividend payments in the future. To summarise, shareholders should always check that Uflex's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. Firstly, we like that Uflex has low and conservative payout ratios. We were also glad to see it growing earnings, but it was concerning to see the dividend has been cut at least once in the past. Uflex performs highly under this analysis, although it falls slightly short of our exacting standards. At the right valuation, it could be a solid dividend prospect. See if management have their own wealth at stake, by checking insider shareholdings inUflex stock. If you are a dividend investor, you might also want to look at ourcurated list of dividend stocks yielding above 3%. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Do You Know What Nynomic AG's (FRA:M7U) P/E Ratio Means? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! This article is written for those who want to get better at using price to earnings ratios (P/E ratios). To keep it practical, we'll show how Nynomic AG's (FRA:M7U) P/E ratio could help you assess the value on offer.Nynomic has a P/E ratio of 12.89, based on the last twelve months. In other words, at today's prices, investors are paying €12.89 for every €1 in prior year profit. View our latest analysis for Nynomic Theformula for P/Eis: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Nynomic: P/E of 12.89 = €17.4 ÷ €1.35 (Based on the trailing twelve months to December 2018.) A higher P/E ratio means that investors are payinga higher pricefor each €1 of company earnings. All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' Probably the most important factor in determining what P/E a company trades on is the earnings growth. When earnings grow, the 'E' increases, over time. That means unless the share price increases, the P/E will reduce in a few years. Then, a lower P/E should attract more buyers, pushing the share price up. Nynomic increased earnings per share by a whopping 39% last year. And its annual EPS growth rate over 3 years is 28%. I'd therefore be a little surprised if its P/E ratio was not relatively high. One good way to get a quick read on what market participants expect of a company is to look at its P/E ratio. If you look at the image below, you can see Nynomic has a lower P/E than the average (18.6) in the electronic industry classification. Its relatively low P/E ratio indicates that Nynomic shareholders think it will struggle to do as well as other companies in its industry classification. While current expectations are low, the stock could be undervalued if the situation is better than the market assumes. You should delve deeper. I like to checkif company insiders have been buying or selling. It's important to note that the P/E ratio considers the market capitalization, not the enterprise value. So it won't reflect the advantage of cash, or disadvantage of debt. Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings. Such expenditure might be good or bad, in the long term, but the point here is that the balance sheet is not reflected by this ratio. Nynomic has net debt worth 11% of its market capitalization. This could bring some additional risk, and reduce the number of investment options for management; worth remembering if you compare its P/E to businesses without debt. Nynomic has a P/E of 12.9. That's below the average in the DE market, which is 20. The company hasn't stretched its balance sheet, and earnings growth was good last year. If the company can continue to grow earnings, then the current P/E may be unjustifiably low. When the market is wrong about a stock, it gives savvy investors an opportunity. If the reality for a company is not as bad as the P/E ratio indicates, then the share price should increase as the market realizes this. So thisfreereport on the analyst consensus forecastscould help you make amaster moveon this stock. Of course,you might find a fantastic investment by looking at a few good candidates.So take a peek at thisfreelist of companies with modest (or no) debt, trading on a P/E below 20. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
John Oliver dings Trump over treatment of women On Last Week Tonight With John Oliver , Donald Trumps relationships with autocratic leaders like Russian president Vladimir Putin , Saudi crown prince Mohammed bin Salman and North Korean dictator Kim Jong-un were the focus of Olivers derision. Trump became the first sitting U.S. president to step foot in North Korea on Sunday when he and Kim crossed through the demilitarized zone, after which Trump had this to say. Its just an honor to be with you. It was an honor that you asked me to step over that line and I was proud to step over the line, Trump said. I thought you might do that. I wasnt sure, but I was ready to do it, and I want to thank you. Its been great. Given the multiple allegations of sexual misconduct against Trump, with the latest rape accusation coming less than two weeks ago, and Trumps own admission of not respecting womens boundaries, Oliver sarcastically took Trump waiting to be asked into North Korea as a step in the right direction. Oh, thats actually nice, Oliver said. So Trump wanted to step over the line, was ready to do it, but waited until he received affirmative consent. What a refreshing change of pace for him. Then Oliver had an idea, saying, Maybe Trumps mantra going forward should be, Treat women with the same respect you show murderous autocrats. Hes growing. Good for him. Last Week Tonight With John Oliver airs Sundays at 11 p.m. on HBO . Watch Chris Christie shred Chuck Todd following the second Democratic debate: Read more from Yahoo Entertainment: Twitter slams Fred Savages new show: Worst thing Ive seen on television Kylie Jenner cries while asking Kim Kardashian to not bully Jordyn Woods Nicki Minaj reveals why she got fired from Red Lobster Tell us what you think! Hit us up on Twitter , Facebook or Instagram , or leave your comments below. And check out our host, Kylie Mar, on Twitter , Facebook or Instagram . Want daily pop culture news delivered to your inbox? Sign up here for Yahoo Entertainment & Lifestyle's newsletter.
Should You Think About Buying Nynomic AG (FRA:M7U) Now? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Nynomic AG (FRA:M7U), which is in the electronic business, and is based in Germany, received a lot of attention from a substantial price movement on the DB over the last few months, increasing to €23.8 at one point, and dropping to the lows of €15.9. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Nynomic's current trading price of €17.4 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Nynomic’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. See our latest analysis for Nynomic The stock seems fairly valued at the moment according to my valuation model. It’s trading around 13.77% above my intrinsic value, which means if you buy Nynomic today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth €15.29, there’s only an insignificant downside when the price falls to its real value. Although, there may be an opportunity to buy in the future. This is because Nynomic’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity. Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with a relatively muted profit growth of 8.6% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Nynomic, at least in the short term. Are you a shareholder?M7U’s future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value? Are you a potential investor?If you’ve been keeping tabs on M7U, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Nynomic. You can find everything you need to know about Nynomic inthe latest infographic research report. If you are no longer interested in Nynomic, you can use our free platform to see my list of over50 other stocks with a high growth potential. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Trump says Iran 'playing with fire' with uranium enrichment By Parisa Hafezi and Francois Murphy DUBAI/VIENNA (Reuters) - Iran announced on Monday it had amassed more low-enriched uranium than permitted under its 2015 nuclear deal with world powers, drawing a warning from U.S. President Donald Trump that Tehran was "playing with fire." Tehran's announcement marked its first major step beyond the terms of the pact since the United States pulled out of it more than a year ago. However, Iranian Foreign Minister Mohammad Javad Zarif said the move was not a violation of the accord, arguing that Iran was exercising its right to respond to the U.S. walkout. The step, however, could have far-reaching consequences for diplomacy at a time when European countries are trying to pull the United States and Iran back from confrontation. It comes less than two weeks after Trump said he ordered air strikes on Iran, only to cancel them minutes before impact. Iran's semi-official Fars news agency reported that the country's enriched uranium stockpile has now passed the 300-kg (661 lb) limit allowed under the deal. The U.N. nuclear watchdog, the International Atomic Energy Agency (IAEA), which monitors Iran's nuclear program under the deal, confirmed in Vienna that Tehran had breached the limit. Trump, asked if he had a message for Iran, said: "No message to Iran. They know what they're doing. They know what they're playing with, and I think they're playing with fire. So, no message to Iran whatsoever." The White House said earlier it would continue to apply "maximum pressure" on Iran "until its leaders alter their course of action." It also said Iran should be held to a standard barring all uranium enrichment. However, there is no international standard prohibiting Iran from enriching uranium, said Daryl Kimball, executive director of the Arms Control Association. "That is not the case. That is an American position," he said. European powers, who remain party to the accord and have tried to keep it in place, urged Iran not to take further steps that would violate it. But they held off on declaring the agreement void or announcing sanctions of their own. Story continues "We have NOT violated the #JCPOA," Zarif wrote on Twitter, referring to the deal by the acronym for its formal title, the Joint Comprehensive Plan of Action. He referred to a paragraph of the accord which contains the mechanism for countries to resolve disputes over compliance. "As soon as E3 abide by their obligations, we'll reverse," he said, referring to European powers Britain, Germany and France. Iran has demanded they guarantee it the access to world trade envisioned under the deal. The move is a test of European diplomacy after French, British and German officials had promised a strong diplomatic response if Iran fundamentally breached the deal. The Europeans, who opposed last year's decision by Trump to abandon the agreement had pleaded with Iran to keep within its parameters. Foreign Secretary Jeremy Hunt said Britain wants to preserve the pact "because we don’t want Iran to have nuclear weapons. But if Iran breaks that deal then we are out of it as well." Iran has said it aims to keep the accord in place but cannot abide by its terms indefinitely, as long as sanctions imposed by Trump have deprived it of the benefits it was meant to receive in return for accepting curbs on its nuclear program. A spokesman for U.N. Secretary General Antonio Guterres said: "Such action by the Islamic Republic of Iran would not help preserve the plan, nor secure the tangible economic benefits for the Iranian people," and added that it should be resolved using the deal's mechanism. Israeli Prime Minister Benjamin Netanyahu said the European countries should "stand behind their commitments" and impose sanctions on Iran. "ECONOMIC WAR" Iran said in May it would speed up production of enriched uranium in response to the Trump administration sharply tightening sanctions against it that month. Washington has now effectively ordered all countries to halt purchases of Iranian oil or face sanctions of their own, which Tehran calls "economic war" designed to starve its population. In the two months since the sanctions were tightened, the confrontation has taken on a military dimension, with Washington blaming Tehran for attacks on oil tankers, and Iran shooting down a U.S. drone, prompting the aborted U.S. air strikes. The nuclear deal imposes limits both on how much enriched uranium Iran can hold and on how pure its stocks can be, thresholds intended to lengthen the "breakout period" - the time Tehran would need to build a nuclear bomb if it sought one. Zarif said Iran's next move would be to enrich uranium beyond the maximum 3.67% fissile purity allowed under the deal, a threshold Tehran has previously said it would cross on July 7. Iran's moves so far appear to be a calculated test of the deal's enforcement mechanisms and the diplomatic response. "This is not an irreversible step the Iranians have taken. Iran, with the remaining partners, can decide how they’re going to proceed. There is a process in the JCPOA to try to cure breaches,” said Wendy Sherman, former President Barack Obama's lead U.S. negotiator on the deal and now director of the Center for Public Leadership at the Harvard Kennedy School. "This does not in and of itself reduce the breakout time period, which is essential here," she said. The Europeans say they want to help Iran boost its economy. But so far European efforts to do so have failed, with Iran shunned on oil markets and major foreign companies abandoning plans to invest for fear of falling foul of U.S. rules. David Albright, a former U.N. nuclear inspector who consults with European officials on the Iran nuclear deal, said that while the EU3 are angry that Iran has broken the 300-kilogram ceiling, the violation is not serious enough for them to seek an immediate snapback of international sanctions. They are watching, he said, for graver breaches that could indicate that Iran is returning to the nuclear weapons development track that the CIA and the International Atomic Energy Agency determined Tehran had abandoned in 2003. Iran denies it had such a program. "There will be a lot of noise, but not a lot of action on snapback," said Albright, president of the Institute for Science and International Security, a think tank. The confrontation has put the United States in the position of demanding that the Europeans ensure Iranian compliance with an agreement that Washington itself has rejected. Trump argues that the deal is too weak because some of its terms are not permanent, and because it does not cover non-nuclear issues such as Iran's ballistic missile program and regional behavior. Washington says sanctions are aimed at pushing Tehran back to the negotiating table. Iran says it cannot talk as long as Washington is ignoring the deal that it signed. Israel, which considers the Iranian nuclear program an existential threat, has backed Trump's hard line, as have U.S. allies among the rich Arab states of the Gulf, which consider Iran a foe and benefit from having its oil kept off markets. "Just imagine what will happen if the material stockpiled by the Iranians becomes fissionable, at military enrichment grade, and then an actual bomb," Joseph Cohen, head of Israel's Mossad intelligence agency, told a security conference. (Additional reporting by Babak Dehghanpisheh in Geneva, Lesley Wroughton, Jonathan Landay and Steve Holland in Washington; Jeffrey Heller and Ari Rabinovitch in Jerusalem, John Irish in Paris and Elizabeth Piper and Kylie MacLellan in London; Writing by Peter Graff and Doina Chiacu; Editing by Mark Heinrich, Alistair Bell and James Dalgleish)
Donald Trump Resurrects Lie That China Is Paying His Tariffs President Donald Trump boasted Sunday that the U.S. is winning the trade war with China and revived his lie that China pays the tariffs he has imposed on imported Chinese products. Were winning and were winning big because we have created an economy that is second to none, he said at a news conference in South Korea. The previous day he said trade talks with China were back on as he agreed to indefinitely suspend his threatened new round of 25% tariffs on $300 billion in Chinese imports. He also said American companies could continue to do some business with Chinas Huawei Technologies. Trump also insisted Sunday: Were [currently] collecting 25% on $250 billion, and China is paying for it, as you know, because, as you notice, our inflation hasnt gone up. In fact, tariffs imposed on Chinese products are paid by American companies importing the goods and are typically passed on to consumers . Though Chinese businesses may lower their sales prices to remain competitive in America, they are paying nothing to the U.S. treasury. Economists have estimated that the trade war is costing U.S. companies and consumers more than $3 billion a month . Yet Trump told the Fox Business Network: Dont let anyone tell you that were paying. Were not paying. Chinas paying for it. The Associated Press reported flatly in a fact-check on that comment: Americans are paying for it . ....again with China as our relationship with them continues to be a very good one. The quality of the transaction is far more important to me than speed. I am in no hurry, but things look very good! There will be no reduction in the Tariffs currently being charged to China. Donald J. Trump (@realDonaldTrump) June 29, 2019 The rest of whatever arrangements may have been discussed by Trump and Chinese President Xi Jinping remain unclear. Trump insisted that China promised to buy tremendous amounts of agricultural products from U.S. farmers. We will give them a list of things we want them to buy, he said. But Chinese state media reported that Trump hopes China will import more American goods as part of the trade war truce, reported Bloomberg. When Trump suspended threatened tariffs against Mexico earlier this month he also said that nation had promised to buy large quantities of agricultural products from the U.S. But neither Mexican nor American officials said they were aware of any such deal . The president hasnt referred to it since. Also on HuffPost Love HuffPost? Become a founding member of HuffPost Plus today. This article originally appeared on HuffPost . View comments
Zurich Insurance Group AG (VTX:ZURN) Is Yielding 5.1% - But Is It A Buy? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we'll take a closer look at Zurich Insurance Group AG (VTX:ZURN) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. Unfortunately, it's common for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments. With Zurich Insurance Group yielding 5.1% and having paid a dividend for over 10 years, many investors likely find the company quite interesting. We'd guess that plenty of investors have purchased it for the income. The company also bought back stock equivalent to around 1.9% of market capitalisation this year. Some simple analysis can reduce the risk of holding Zurich Insurance Group for its dividend, and we'll focus on the most important aspects below. Explore this interactive chart for our latest analysis on Zurich Insurance Group! Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. Zurich Insurance Group paid out 74% of its profit as dividends, over the trailing twelve month period. A payout ratio above 50% generally implies a business is reaching maturity, although it is still possible to reinvest in the business or increase the dividend over time. Consider gettingour latest analysis on Zurich Insurance Group's financial position here. One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. For the purpose of this article, we only scrutinise the last decade of Zurich Insurance Group's dividend payments. During the past ten-year period, the first annual payment was US$6.70 in 2009, compared to US$17.61 last year. This works out to be a compound annual growth rate (CAGR) of approximately 10% a year over that time. Dividends have been growing pretty quickly, and even more impressively, they haven't experienced any notable falls during this period. The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. Over the long term, dividends need to grow at or above the rate of inflation, in order to maintain the recipient's purchasing power. Zurich Insurance Group's EPS are effectively flat over the past five years. Flat earnings per share are acceptable for a time, but over the long term, the purchasing power of the company's dividends could be eroded by inflation. To summarise, shareholders should always check that Zurich Insurance Group's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. Zurich Insurance Group's payout ratio is within normal bounds. Moreover, earnings have been shrinking. While the dividends have been fairly steady, we'd wonder for how much longer this will be sustainable if earnings continue to decline. While we're not hugely bearish on it, overall we think there are potentially better dividend stocks than Zurich Insurance Group out there. Without at least some growth in earnings per share over time, the dividend will eventually come under pressure either from costs or inflation. Very few businesses see earnings consistently shrink year after year in perpetuity though, and so it might be worth seeing what the 16analysts we track are forecasting for the future. If you are a dividend investor, you might also want to look at ourcurated list of dividend stocks yielding above 3%. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
What Investors Should Know About Hoivatilat Oyj's (HEL:HOIVA) Financial Strength Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! While small-cap stocks, such as Hoivatilat Oyj (HEL:HOIVA) with its market cap of €253m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. Understanding the company's financial health becomes essential, as mismanagement of capital can lead to bankruptcies, which occur at a higher rate for small-caps. We'll look at some basic checks that can form a snapshot the company’s financial strength. Nevertheless, potential investors would need to take a closer look, and I’d encourage you todig deeper yourself into HOIVA here. HOIVA's debt levels surged from €110m to €170m over the last 12 months , which accounts for long term debt. With this rise in debt, the current cash and short-term investment levels stands at €11m , ready to be used for running the business. On top of this, HOIVA has produced €8.7m in operating cash flow during the same period of time, resulting in an operating cash to total debt ratio of 5.1%, signalling that HOIVA’s operating cash is less than its debt. With current liabilities at €20m, it seems that the business may not have an easy time meeting these commitments with a current assets level of €15m, leading to a current ratio of 0.74x. The current ratio is the number you get when you divide current assets by current liabilities. HOIVA is a highly-leveraged company with debt exceeding equity by over 100%. This is somewhat unusual for small-caps companies, since lenders are often hesitant to provide attractive interest rates to less-established businesses. We can test if HOIVA’s debt levels are sustainable by measuring interest payments against earnings of a company. Ideally, earnings before interest and tax (EBIT) should cover net interest by at least three times. For HOIVA, the ratio of 5.74x suggests that interest is appropriately covered, which means that lenders may be willing to lend out more funding as HOIVA’s high interest coverage is seen as responsible and safe practice. Although HOIVA’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet debt obligations which means its debt is being efficiently utilised. But, its lack of liquidity raises questions over current asset management practices for the small-cap. This is only a rough assessment of financial health, and I'm sure HOIVA has company-specific issues impacting its capital structure decisions. I recommend you continue to research Hoivatilat Oyj to get a better picture of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for HOIVA’s future growth? Take a look at ourfree research report of analyst consensusfor HOIVA’s outlook. 2. Valuation: What is HOIVA worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? Theintrinsic value infographic in our free research reporthelps visualize whether HOIVA is currently mispriced by the market. 3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
If You Had Bought Hoivatilat Oyj (HEL:HOIVA) Shares Three Years Ago You'd Have Made 159% Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. But when you pick a company that is really flourishing, you canmakemore than 100%. To wit, theHoivatilat Oyj(HEL:HOIVA) share price has flown 159% in the last three years. How nice for those who held the stock! Also pleasing for shareholders was the 17% gain in the last three months. Check out our latest analysis for Hoivatilat Oyj To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. Hoivatilat Oyj was able to grow its EPS at 22% per year over three years, sending the share price higher. In comparison, the 37% per year gain in the share price outpaces the EPS growth. So it's fair to assume the market has a higher opinion of the business than it did three years ago. It is quite common to see investors become enamoured with a business, after a few years of solid progress. You can see below how EPS has changed over time (discover the exact values by clicking on the image). We know that Hoivatilat Oyj has improved its bottom line lately, but is it going to grow revenue? If you're interested, you could check thisfreereport showing consensus revenue forecasts. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for Hoivatilat Oyj the TSR over the last 3 years was 172%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted thetotalshareholder return. We're pleased to report that Hoivatilat Oyj rewarded shareholders with a total shareholder return of 33% over the last year. And yes, that does include the dividend. But the three year TSR of 40% per year is even better. Is Hoivatilat Oyj cheap compared to other companies? These3 valuation measuresmight help you decide. But note:Hoivatilat Oyj may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with past earnings growth (and further growth forecast). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on FI exchanges. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Is Heijmans N.V. (AMS:HEIJM) Excessively Paying Its CEO? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Ton Hillen has been the CEO of Heijmans N.V. (AMS:HEIJM) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid. See our latest analysis for Heijmans According to our data, Heijmans N.V. has a market capitalization of €186m, and pays its CEO total annual compensation worth €1.1m. (This number is for the twelve months until December 2017). We think total compensation is more important but we note that the CEO salary is lower, at €500k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €88m to €352m. The median total CEO compensation was €659k. As you can see, Ton Hillen is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Heijmans N.V. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance. You can see, below, how CEO compensation at Heijmans has changed over time. Over the last three years Heijmans N.V. has grown its earnings per share (EPS) by an average of 62% per year (using a line of best fit). It achieved revenue growth of 13% over the last year. This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested inthisfreevisualization of analyst forecasts. Heijmans N.V. has generated a total shareholder return of 15% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median. We examined the amount Heijmans N.V. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group. Importantly, though, the company has impressed with its earnings per share growth, over three years. We also think investors are doing ok, over the same time period. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. Whatever your view on compensation, you might want tocheck if insiders are buying or selling Heijmans shares (free trial). Arguably, business quality is much more important than CEO compensation levels. So check out thisfreelist of interesting companies, that have HIGH return on equity and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Should Zurich Insurance Group AG (VTX:ZURN) Be Part Of Your Dividend Portfolio? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Could Zurich Insurance Group AG (VTX:ZURN) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. With Zurich Insurance Group yielding 5.1% and having paid a dividend for over 10 years, many investors likely find the company quite interesting. We'd guess that plenty of investors have purchased it for the income. The company also bought back stock during the year, equivalent to approximately 1.9% of the company's market capitalisation at the time. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this. Explore this interactive chart for our latest analysis on Zurich Insurance Group! Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. Looking at the data, we can see that 74% of Zurich Insurance Group's profits were paid out as dividends in the last 12 months. This is a fairly normal payout ratio among most businesses. It allows a higher dividend to be paid to shareholders, but does limit the capital retained in the business - which could be good or bad. We update our data on Zurich Insurance Group every 24 hours, so you can always getour latest analysis of its financial health, here. From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. For the purpose of this article, we only scrutinise the last decade of Zurich Insurance Group's dividend payments. During the past ten-year period, the first annual payment was US$6.70 in 2009, compared to US$17.61 last year. This works out to be a compound annual growth rate (CAGR) of approximately 10% a year over that time. It's rare to find a company that has grown its dividends rapidly over ten years and not had any notable cuts, but Zurich Insurance Group has done it, which we really like. The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. Zurich Insurance Group's earnings per share have been essentially flat over the past five years. Flat earnings per share are acceptable for a time, but over the long term, the purchasing power of the company's dividends could be eroded by inflation. To summarise, shareholders should always check that Zurich Insurance Group's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. First, we think Zurich Insurance Group has an acceptable payout ratio. Second, earnings per share have actually shrunk, but at least the dividends have been relatively stable. While we're not hugely bearish on it, overall we think there are potentially better dividend stocks than Zurich Insurance Group out there. Without at least some growth in earnings per share over time, the dividend will eventually come under pressure either from costs or inflation. Very few businesses see earnings consistently shrink year after year in perpetuity though, and so it might be worth seeing what the 16analysts we track are forecasting for the future. If you are a dividend investor, you might also want to look at ourcurated list of dividend stocks yielding above 3%. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
How Do Analysts See Air Partner plc (LON:AIR) Performing In The Next Couple Of Years? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! The latest earnings release Air Partner plc's (LON:AIR) announced in May 2019 revealed that the business endured a major headwind with earnings falling by -19%. Today I want to provide a brief commentary on how market analysts predict Air Partner's earnings growth trajectory over the next couple of years and whether the future looks brighter. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings. View our latest analysis for Air Partner Analysts' outlook for next year seems positive, with earnings rising by a significant 59%. This high growth in earnings is expected to continue, bringing the bottom line up to UK£5.5m by 2022. Even though it’s helpful to understand the rate of growth year by year relative to today’s value, it may be more valuable to gauge the rate at which the company is moving on average every year. The benefit of this approach is that we can get a better picture of the direction of Air Partner's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I've inserted a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 18%. This means that, we can anticipate Air Partner will grow its earnings by 18% every year for the next couple of years. For Air Partner, I've compiled three pertinent factors you should further research: 1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Valuation: What is AIR worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? Theintrinsic value infographic in our free research reporthelps visualize whether AIR is currently mispriced by the market. 3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of AIR? Exploreour interactive list of stocks with large growth potentialto get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
What Do Analysts Think About Air Partner plc's (LON:AIR) Future? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Looking at Air Partner plc's (LON:AIR) earnings update in January 2019, analyst consensus outlook appear vastly optimistic, as a 59% rise in profits is expected in the upcoming year, against the previous 5-year average growth rate of 10%. By 2020, we can expect Air Partner’s bottom line to reach UK£4.6m, a jump from the current trailing-twelve-month of UK£2.9m. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Air Partner in the longer term. Readers that are interested in understanding the company beyond these figures shouldresearch its fundamentals here. Check out our latest analysis for Air Partner Over the next three years, it seems the consensus view of the 2 analysts covering AIR is skewed towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of AIR's earnings growth over these next few years. From the current net income level of UK£2.9m and the final forecast of UK£5.5m by 2022, the annual rate of growth for AIR’s earnings is 18%. EPS reaches £0.10 in the final year of forecast compared to the current £0.056 EPS today. In 2022, AIR's profit margin will have expanded from 3.7% to 6.2%. Future outlook is only one aspect when you're building an investment case for a stock. For Air Partner, there are three important aspects you should look at: 1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Valuation: What is Air Partner worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? Theintrinsic value infographic in our free research reporthelps visualize whether Air Partner is currently mispriced by the market. 3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of Air Partner? Exploreour interactive list of stocks with large growth potentialto get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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