Berkshire Hathaway Inc Valuation – April 2019 #BRK.B

Company Profile (excerpt from Reuters): Berkshire Hathaway Inc. (Berkshire), incorporated on June 16, 1998, is a holding company owning subsidiaries engaged in various business activities. The Company’s segments include Insurance, Burlington Northern Santa Fe, LLC (BNSF), Berkshire Hathaway Energy, Manufacturing, McLane Company, Service and retailing, and Finance and financial products. The Company conducts insurance businesses on both a primary basis and a reinsurance basis, a freight rail transportation business and a group of utility and energy generation and distribution businesses. Berkshire also owns and operates a range of other businesses engaged in a range of activities. Its insurance and reinsurance business activities are conducted through various domestic and foreign-based insurance entities. Its insurance businesses provide insurance and reinsurance of property and casualty risks and also reinsure life, accident and health risks across the world.

 

Downloadable PDF version of this valuation:

ModernGraham Valuation of BRK.B – April 2019

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

 

Defensive Investor; must pass all 6 of the following tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $501,551,804,600 Pass
2. Earnings Stability Positive EPS for 10 years prior Pass
3. Dividend Record Dividend Payments for 10 years prior Fail
4. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 93.65% Pass
5. Moderate PEmg Ratio PEmg < 20 21.36 Fail
6. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 1.40 Pass
Enterprising Investor; must pass all 3 of the following tests, or be suitable for the Defensive Investor.
1. Earnings Stability Positive EPS for 5 years prior Pass
2. Dividend Record Currently Pays Dividend Fail
3. Earnings Growth EPSmg greater than 5 years ago Pass

 

Stage 2: Determination of Intrinsic Value

EPSmg $9.36
MG Growth Estimate 2.43%
MG Value $125.05
Opinion Overvalued
MG Grade F
MG Value based on 3% Growth $135.79
MG Value based on 0% Growth $79.60
Market Implied Growth Rate 6.43%
Current Price $200.07
% of Intrinsic Value 159.99%

Berkshire Hathaway Inc. Class B does not satisfy the requirements of either the Enterprising Investor or the more conservative Defensive Investor. The Defensive Investor is concerned with the poor dividend history, and the high PEmg ratio. The Enterprising Investor has concerns regarding the lack of dividends. As a result, all value investors following the ModernGraham approach should explore other opportunities at this time or proceed cautiously with a speculative attitude.

As for a valuation, the company appears to be Overvalued after growing its EPSmg (normalized earnings) from $8.06 in 2015 to an estimated $9.36 for 2019. This level of demonstrated earnings growth does not support the market’s implied estimate of 6.43% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value below the price.

At the time of valuation, further research into Berkshire Hathaway Inc. Class B revealed the company was trading above its Graham Number of $178.09. The company does not pay a dividend. Its PEmg (price over earnings per share – ModernGraham) was 21.36, which was above the industry average of 19.43.

Berkshire Hathaway Inc. Class B scores quite poorly in the ModernGraham grading system, with an overall grade of F.

Stage 3: Information for Further Research

Graham Number $178.09
PEmg 21.36
PB Ratio 1.40
Dividend Yield 0.00%
TTM Dividend $0.00
Number of Consecutive Years of Dividend Growth 0

Useful Links:

 

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 12/1/2018
Long-Term Debt & Capital Lease Obligation $93,117,000,000
Total Assets $707,794,000,000
Intangible Assets $113,173,000,000
Total Liabilities $355,294,000,000
Shares Outstanding (Diluted Average) 2,462,433,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $10.00
Dec2018 $1.63
Dec2017 $18.22
Dec2016 $9.76
Dec2015 $9.77
Dec2014 $8.06
Dec2013 $7.90
Dec2012 $5.99
Dec2011 $4.14
Dec2010 $5.29
Dec2009 $3.46
Dec2008 $2.15
Dec2007 $5.70
Dec2006 $4.76
Dec2005 $3.69
Dec2004 $3.17
Dec2003 $3.54
Dec2002 $1.86
Dec2001 $0.35
Dec2000 $1.46
Dec1999 $0.68

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $9.36
Dec2018 $9.19
Dec2017 $12.23
Dec2016 $8.92
Dec2015 $8.06
Dec2014 $6.90
Dec2013 $5.99
Dec2012 $4.76
Dec2011 $4.15
Dec2010 $4.19
Dec2009 $3.75
Dec2008 $3.89
Dec2007 $4.57
Dec2006 $3.80
Dec2005 $3.06
Dec2004 $2.52
Dec2003 $1.99

Recommended Reading:

Other ModernGraham posts about the company

Berkshire Hathaway Inc Valuation – May 2018 $BRK-B
Berkshire Hathaway Inc Valuation – January 2017 $BRK.B
Berkshire Hathaway Analysis – August 2015 Update $BRK/B
20 Companies in the Spotlight This Week – 8/16/14

Other ModernGraham posts about related companies

Prudential Financial Inc Valuation – April 2019 #PRU
Torchmark Corp Valuation – March 2019 #TMK
Assurant Inc Valuation – March 2019 #AIZ
Humana Inc Valuation – March 2019 #HUM
American International Group Inc Valuation – March 2019 #AIG
Chubb Ltd Valuation – March 2019 #CB
Loews Corporation Valuation – March 2019 #L
Anthem Inc Valuation – February 2019 $ANTM
Arthur J Gallagher & Co Valuation – February 2019 $AJG
Brighthouse Financial Inc Valuation – February 2019 $BHF

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Pentair PLC Valuation – March 2019 #PNR

Company Profile (excerpt from Reuters): Pentair plc, incorporated on November 28, 2013, is a diversified industrial manufacturing company. The Company is engaged in Water Quality Systems business, and Flow and Filtration Solutions business. The Water Quality Systems business designs, manufactures, markets and services water system products and solutions to meet filtration and fluid management challenges in food and beverage, water, swimming pools and aquaculture applications. The Flow and Filtration Solutions business is involved in the entire water, water treatment and wastewater system from filtration, desalination, water supply to water disposal, process and control.

 

Downloadable PDF version of this valuation:

ModernGraham Valuation of PNR – March 2019

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $7,241,842,352 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 1.27 Fail
3. Earnings Stability Positive EPS for 10 years prior Fail
4. Dividend Record Dividend Payments for 10 years prior Pass
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 760.64% Pass
6. Moderate PEmg Ratio PEmg < 20 17.36 Pass
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 4.00 Fail
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 1.27 Fail
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 3.57 Fail
3. Earnings Stability Positive EPS for 5 years prior Fail
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Pass

 

Stage 2: Determination of Intrinsic Value

EPSmg $2.43
MG Growth Estimate 15.00%
MG Value $93.71
Opinion Undervalued
MG Grade C
MG Value based on 3% Growth $35.29
MG Value based on 0% Growth $20.69
Market Implied Growth Rate 4.43%
Current Price $42.26
% of Intrinsic Value 45.10%

Pentair PLC does not satisfy the requirements of either the Enterprising Investor or the more conservative Defensive Investor. The Defensive Investor is concerned with the low current ratio, insufficient earnings stability over the last ten years, and the high PB ratio. The Enterprising Investor has concerns regarding the level of debt relative to the current assets, and the lack of earnings stability over the last five years. As a result, all value investors following the ModernGraham approach should explore other opportunities at this time or proceed cautiously with a speculative attitude.

As for a valuation, the company appears to be Undervalued after growing its EPSmg (normalized earnings) from $0.56 in 2015 to an estimated $2.43 for 2019. This level of demonstrated earnings growth outpaces the market’s implied estimate of 4.43% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value above the price.

At the time of valuation, further research into Pentair PLC revealed the company was trading above its Graham Number of $24.39. The company pays a dividend of $1.05 per share, for a yield of 2.5%, putting it among the best dividend paying stocks today. Its PEmg (price over earnings per share – ModernGraham) was 17.36, which was below the industry average of 26.53, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $-5.36.

Pentair PLC receives an average overall rating in the ModernGraham grading system, scoring a C.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) -$5.36
Graham Number $24.39
PEmg 17.36
Current Ratio 1.27
PB Ratio 4.00
Current Dividend $1.05
Dividend Yield 2.48%
Number of Consecutive Years of Dividend Growth 0

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 12/1/2018
Total Current Assets $1,039,400,000
Total Current Liabilities $818,700,000
Long-Term Debt $787,600,000
Total Assets $3,806,500,000
Intangible Assets $2,349,000,000
Total Liabilities $1,970,400,000
Shares Outstanding (Diluted Average) 173,700,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $2.50
Dec2018 $1.96
Dec2017 $3.63
Dec2016 $2.85
Dec2015 -$0.42
Dec2014 $1.11
Dec2013 $2.62
Dec2012 -$0.84
Dec2011 -$0.08
Dec2010 $1.86
Dec2009 $1.17
Dec2008 $2.31
Dec2007 $2.11
Dec2006 $1.81
Dec2005 $1.80
Dec2004 $1.68
Dec2003 $1.42
Dec2002 $1.31
Dec2001 $0.33
Dec2000 $0.57
Dec1999 $1.17

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $2.43
Dec2018 $2.21
Dec2017 $2.21
Dec2016 $1.35
Dec2015 $0.56
Dec2014 $1.01
Dec2013 $0.96
Dec2012 $0.38
Dec2011 $1.15
Dec2010 $1.80
Dec2009 $1.79
Dec2008 $2.05
Dec2007 $1.86
Dec2006 $1.70
Dec2005 $1.53
Dec2004 $1.28
Dec2003 $1.04

Recommended Reading:

Other ModernGraham posts about the company

10 Undervalued Companies for the Defensive Dividend Stock Investor – February 2019
10 Undervalued Companies for the Defensive Dividend Stock Investor – July 2018
Pentair PLC Valuation – June 2018 $PNR
Pentair PLC Valuation – March 2017 $PNR
Pentair PLC Valuation – November 2015 Update $PNR

Other ModernGraham posts about related companies

Snap-On Inc Valuation – March 2019 #SNA
W.W. Grainger Inc Valuation – February 2019 $GWW
Xylem Inc Valuation – February 2019 $XYL
Allegion PLC Valuation – February 2019 $ALLE
Arconic Inc Valuation – February 2019 $ARNC
Roper Technologies Inc Valuation – February 2019 $ROP
Rockwell Automation Inc Valuation – February 2019 $ROK
Eaton Corp PLC Valuation – January 2019 $ETN
Fastenal Co Valuation – January 2019 $FAST
Deere & Co Valuation – January 2019 $DE

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Dentsply Sirona Inc Valuation – March 2019 #XRAY

Company Profile (excerpt from Reuters): DENTSPLY SIRONA Inc., incorporated on February 15, 1983, is a manufacturer of professional dental products and technologies. The Company develops, manufactures, and markets solutions offering, including dental and oral health products, as well as other consumable medical devices. The Company operates through two segments: Dental and Healthcare Consumables, and Technologies. The dental industry encompasses the diagnosis, treatment and prevention of disease and ailments of the teeth, gums and supporting bone. The Company’s principal dental product categories are dental consumable products, dental laboratory products, dental specialty products and dental equipment. Additionally, the Company’s consumable medical device products are used for urological and surgical applications. These products are produced by the Company in the United States and internationally and are distributed throughout the world under various brand names, including ANKYLOS, AQUASIL ULTRA, ARTICADENT, ASTRA TECH, ATLANTIS, CALIBRA, CAULK, CAVITRON, CELTRA, CERAMCO, CERCON, CEREC, CEREC MCX, CITANEST, DAC, DELTON, DENTSPLY, DETREY, DYRACT, ESTHET.X, GALILEOS, INLAB, IN-OVATION, INTEGO, LOFRIC, MAILLEFER, MIDWEST, MTM, NUPRO, OMNICAM, ORAQIX, ORIGO, ORTHOPHOS, OSSEOSPEED, PALODENT PLUS, PEPGEN P-15, PORTRAIT, PRIME & BOND, PROFILE, PROGLIDER, PROTAPER, RECIPROC, RINN, SANI-TIP, SCHICK, SENSE, SENTALLOY, SINIUS, SIROLASER, SIRONA, SLIMLINE, STYLUS, SULTAN, SUREFIL, T1, T2, T3, T4, TENEO, THERMAFIL, TRIODENT MATRIX SYSTEMS, TRUBYTE, VIPI, WAVEONE, WELLSPECT, XENO, XIVE, XYLOCAINE and ZHERMACK.

 

Downloadable PDF version of this valuation:

ModernGraham Valuation of XRAY – March 2019

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $10,991,254,694 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 1.86 Fail
3. Earnings Stability Positive EPS for 10 years prior Fail
4. Dividend Record Dividend Payments for 10 years prior Pass
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end -259.30% Fail
6. Moderate PEmg Ratio PEmg < 20 -33.99 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 2.13 Fail
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 1.86 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 1.79 Fail
3. Earnings Stability Positive EPS for 5 years prior Fail
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Fail

 

Stage 2: Determination of Intrinsic Value

EPSmg -$1.45
MG Growth Estimate -4.25%
MG Value $0.00
Opinion Overvalued
MG Grade D
MG Value based on 3% Growth -$21.01
MG Value based on 0% Growth -$12.31
Market Implied Growth Rate -21.24%
Current Price $49.24
% of Intrinsic Value N/A

DENTSPLY SIRONA Inc does not satisfy the requirements of either the Enterprising Investor or the more conservative Defensive Investor. The Defensive Investor is concerned with the low current ratio, insufficient earnings stability or growth over the last ten years, and the high PEmg and PB ratios. The Enterprising Investor has concerns regarding the level of debt relative to the net current assets, and the lack of earnings stability or growth over the last five years. As a result, all value investors following the ModernGraham approach should explore other opportunities at this time or proceed cautiously with a speculative attitude.

As for a valuation, the company appears to be Overvalued after seeing its EPSmg (normalized earnings) decline from $2.02 in 2015 to an estimated $-1.45 for 2019. This level of negative earnings does not support a positive valuation.As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value below the price.

At the time of valuation, further research into DENTSPLY SIRONA Inc revealed the company was trading above its Graham Number of $33.67. The company pays a dividend of $0.35 per share, for a yield of 0.7% Its PEmg (price over earnings per share – ModernGraham) was -33.99, which was below the industry average of 53.13, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $-7.49.

DENTSPLY SIRONA Inc scores quite poorly in the ModernGraham grading system, with an overall grade of D.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) -$7.49
Graham Number $33.67
PEmg -33.99
Current Ratio 1.86
PB Ratio 2.13
Current Dividend $0.35
Dividend Yield 0.71%
Number of Consecutive Years of Dividend Growth 8

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 12/1/2018
Total Current Assets $1,888,000,000
Total Current Liabilities $1,013,300,000
Long-Term Debt $1,564,900,000
Total Assets $8,687,000,000
Intangible Assets $5,851,600,000
Total Liabilities $3,554,000,000
Shares Outstanding (Diluted Average) 222,500,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $2.19
Dec2018 -$4.51
Dec2017 -$6.76
Dec2016 $1.94
Dec2015 $1.76
Dec2014 $2.24
Dec2013 $2.16
Dec2012 $2.18
Dec2011 $1.70
Dec2010 $1.82
Dec2009 $1.83
Dec2008 $1.87
Dec2007 $1.68
Dec2006 $1.41
Dec2005 $0.28
Dec2004 $1.55
Dec2003 $1.09
Dec2002 $0.93
Dec2001 $0.77
Dec2000 $0.65
Dec1999 $0.57

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate -$1.45
Dec2018 -$2.53
Dec2017 -$0.94
Dec2016 $2.00
Dec2015 $2.02
Dec2014 $2.11
Dec2013 $2.01
Dec2012 $1.91
Dec2011 $1.78
Dec2010 $1.79
Dec2009 $1.65
Dec2008 $1.49
Dec2007 $1.27
Dec2006 $1.06
Dec2005 $0.90
Dec2004 $1.14
Dec2003 $0.89

Recommended Reading:

Other ModernGraham posts about the company

Dentsply Sirona Inc Valuation – June 2018 $XRAY
Dentsply Sirona Inc Valuation – March 2017 $XRAY
Dentsply International Inc Valuation – November 2015 Update $XRAY
Dentsply International Inc. Analysis – August 2015 Update $XRAY
30 Companies in the Spotlight This Week – 5/23/15

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Danaher Corp Valuation – March 2019 #DHR
Agilent Technologies Inc Valuation – March 2019 #A
ResMed Inc Valuation – March 2019 #RMD
Cooper Companies Inc Valuation – March 2019 #COO
Edwards Lifesciences Corp Valuation – March 2019 $EW

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

American Airlines Group Inc Valuation – March 2019 #AAL

Company Profile (excerpt from Reuters): American Airlines Group Inc., incorporated on February 16, 1982, is a holding company. The Company’s primary business activity is the operation of a network air carrier, providing scheduled air transportation for passengers and cargo. The Company operates through American segment, which provides air transportation for passengers and cargo. Together with its regional airline subsidiaries and third-party regional carriers operating as American Eagle, its airline operated an average of nearly 6,700 flights per day to nearly 350 destinations in more than 50 countries, principally from its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, District of Columbia, as of December 31, 2016. In the fiscal year ended December 31, 2016, approximately 199 million passengers boarded its mainline and regional flights.

 

Downloadable PDF version of this valuation:

ModernGraham Valuation of AAL – March 2019

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $14,392,244,457 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 1.12 Fail
3. Earnings Stability Positive EPS for 10 years prior Fail
4. Dividend Record Dividend Payments for 10 years prior Fail
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end -141.07% Fail
6. Moderate PEmg Ratio PEmg < 20 7.09 Pass
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 1.26 Pass
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 1.12 Fail
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 9.67 Fail
3. Earnings Stability Positive EPS for 5 years prior Pass
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Pass

 

Stage 2: Determination of Intrinsic Value

EPSmg $4.52
MG Growth Estimate 15.00%
MG Value $174.07
Opinion Undervalued
MG Grade C+
MG Value based on 3% Growth $65.56
MG Value based on 0% Growth $38.43
Market Implied Growth Rate -0.71%
Current Price $32.04
% of Intrinsic Value 18.41%

American Airlines Group Inc does not satisfy the requirements of either the Enterprising Investor or the more conservative Defensive Investor. The Defensive Investor is concerned with the low current ratio, insufficient earnings stability or growth over the last ten years, and the poor dividend history. The Enterprising Investor has concerns regarding the level of debt relative to the current assets. As a result, all value investors following the ModernGraham approach should explore other opportunities at this time or proceed cautiously with a speculative attitude.

As for a valuation, the company appears to be Undervalued after growing its EPSmg (normalized earnings) from $1.37 in 2015 to an estimated $4.52 for 2019. This level of demonstrated earnings growth outpaces the market’s implied estimate of 0.71% annual earnings loss over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value above the price.

At the time of valuation, further research into American Airlines Group Inc revealed the company was trading below its Graham Number of $55.21. The company pays a dividend of $0.4 per share, for a yield of 1.2% Its PEmg (price over earnings per share – ModernGraham) was 7.09, which was below the industry average of 10.49, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $-86.27.

American Airlines Group Inc receives an average overall rating in the ModernGraham grading system, scoring a C+.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) -$86.27
Graham Number $55.21
PEmg 7.09
Current Ratio 1.12
PB Ratio 1.26
Current Dividend $0.40
Dividend Yield 1.25%
Number of Consecutive Years of Dividend Growth 0

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 12/1/2018
Total Current Assets $19,257,000,000
Total Current Liabilities $17,121,000,000
Long-Term Debt $20,650,000,000
Total Assets $70,878,000,000
Intangible Assets $15,322,000,000
Total Liabilities $59,108,000,000
Shares Outstanding (Diluted Average) 461,916,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $5.50
Dec2018 $3.03
Dec2017 $2.61
Dec2016 $4.65
Dec2015 $11.07
Dec2014 $3.93
Dec2013 -$6.54
Dec2012 -$7.52
Dec2011 -$15.83
Dec2010 -$3.78
Dec2009 -$13.36
Dec2008 -$21.85
Dec2007 $4.77
Dec2006 $2.62
Dec2005 -$13.87
Dec2004 -$12.69
Dec2003 -$20.78
Dec2002 -$60.46
Dec2001 -$30.60
Dec2000 $13.47
Dec1999 $16.76

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $4.52
Dec2018 $4.37
Dec2017 $4.41
Dec2016 $3.91
Dec2015 $1.37
Dec2014 -$4.30
Dec2013 -$8.75
Dec2012 -$10.72
Dec2011 -$11.55
Dec2010 -$8.38
Dec2009 -$9.90
Dec2008 -$8.18
Dec2007 -$3.56
Dec2006 -$12.16
Dec2005 -$22.26
Dec2004 -$25.04
Dec2003 -$26.25

Recommended Reading:

Other ModernGraham posts about the company

American Airlines Group Inc Valuation – May 2018 $AAL
American Airlines Group Inc Valuation – February 2017 $AAL
American Airlines Group Inc Valuation – August 2016 $AAL
American Airlines Group Analysis – 2015 Initial Coverage $AAL

Other ModernGraham posts about related companies

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Delta Air Lines Inc Valuation – January 2019 $DAL
United Continental Holdings Inc Valuation – January 2019 $UAL
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SkyWest Inc Valuation – July 2018 $SKYW
American Airlines Group Inc Valuation – May 2018 $AAL
Southwest Airlines Co Valuation – May 2018 $LUV
Alaska Air Group Inc Valuation – May 2018 $ALK
Delta Air Lines Inc Valuation – March 2018 $DAL
United Continental Holdings Inc Valuation – Initial Coverage $UAL

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Southwest Airlines Co Valuation – March 2019 #LUV

Company Profile (excerpt from Reuters): Southwest Airlines Co. (Southwest), incorporated on March 9, 1967, operates Southwest Airlines, a passenger airline that provides scheduled air transportation in the United States and near-international markets. Southwest provides point-to-point service. As of December 31, 2016, Southwest operated a total of 723 Boeing 737 aircraft and served 101 destinations in 40 states, the District of Columbia, the Commonwealth of Puerto Rico, and eight near-international countries: Mexico, Jamaica, The Bahamas, Aruba, Dominican Republic, Costa Rica, Belize and Cuba. During the fiscal year ended December 31, 2016, the Company commenced international service out of Los Angeles International Airport by introducing service to Liberia, Costa Rica, and later to three airports in Mexico’s coastal regions: Cancun, San Jose del Cabo/Los Cabos and Puerto Vallarta. Southwest bundles fares into three categories: Wanna Get Away, Anytime and Business Select.

 

Downloadable PDF version of this valuation:

ModernGraham Valuation of LUV – March 2019

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $28,679,031,872 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 0.64 Fail
3. Earnings Stability Positive EPS for 10 years prior Pass
4. Dividend Record Dividend Payments for 10 years prior Pass
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 922.14% Pass
6. Moderate PEmg Ratio PEmg < 20 11.74 Pass
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 2.94 Pass
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 0.64 Fail
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 -0.96 Fail
3. Earnings Stability Positive EPS for 5 years prior Pass
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Pass

 

Stage 2: Determination of Intrinsic Value

EPSmg $4.42
MG Growth Estimate 15.00%
MG Value $170.14
Opinion Undervalued
MG Grade B-
MG Value based on 3% Growth $64.08
MG Value based on 0% Growth $37.56
Market Implied Growth Rate 1.62%
Current Price $51.88
% of Intrinsic Value 30.49%

Southwest Airlines Co qualifies for both the Defensive Investor and the Enterprising Investor. The Defensive Investor is only initially concerned with the low current ratio. The Enterprising Investor has concerns regarding the level of debt relative to the current assets. As a result, all value investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Undervalued after growing its EPSmg (normalized earnings) from $1.83 in 2015 to an estimated $4.42 for 2019. This level of demonstrated earnings growth outpaces the market’s implied estimate of 1.62% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value above the price.

At the time of valuation, further research into Southwest Airlines Co revealed the company was trading above its Graham Number of $41.89. The company pays a dividend of $0.61 per share, for a yield of 1.2% Its PEmg (price over earnings per share – ModernGraham) was 11.74, which was above the industry average of 10.49. Finally, the company was trading above its Net Current Asset Value (NCAV) of $-20.33.

Southwest Airlines Co performs fairly well in the ModernGraham grading system, scoring a B-.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) -$20.33
Graham Number $41.89
PEmg 11.74
Current Ratio 0.64
PB Ratio 2.94
Current Dividend $0.61
Dividend Yield 1.17%
Number of Consecutive Years of Dividend Growth 7

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 12/1/2018
Total Current Assets $5,028,000,000
Total Current Liabilities $7,905,000,000
Long-Term Debt $2,771,000,000
Total Assets $26,243,000,000
Intangible Assets $1,369,000,000
Total Liabilities $16,390,000,000
Shares Outstanding (Diluted Average) 559,000,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $4.45
Dec2018 $4.29
Dec2017 $5.57
Dec2016 $3.45
Dec2015 $3.27
Dec2014 $1.64
Dec2013 $1.05
Dec2012 $0.56
Dec2011 $0.23
Dec2010 $0.61
Dec2009 $0.13
Dec2008 $0.24
Dec2007 $0.84
Dec2006 $0.61
Dec2005 $0.60
Dec2004 $0.38
Dec2003 $0.46
Dec2002 $0.23
Dec2001 $0.63
Dec2000 $0.79
Dec1999 $0.59

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $4.42
Dec2018 $4.15
Dec2017 $3.72
Dec2016 $2.53
Dec2015 $1.83
Dec2014 $1.01
Dec2013 $0.64
Dec2012 $0.40
Dec2011 $0.35
Dec2010 $0.44
Dec2009 $0.40
Dec2008 $0.53
Dec2007 $0.64
Dec2006 $0.52
Dec2005 $0.47
Dec2004 $0.43
Dec2003 $0.49

Recommended Reading:

Other ModernGraham posts about the company

10 Undervalued Companies for the Defensive Investor – June 2018
Southwest Airlines Co Valuation – May 2018 $LUV
Southwest Airlines Co Valuation – February 2017 $LUV
Southwest Airlines Company Valuation – October 2015 Update $LUV
18 Companies in the Spotlight This Week – 10/25/14

Other ModernGraham posts about related companies

Alaska Air Group Inc Valuation – February 2019 $ALK
Delta Air Lines Inc Valuation – January 2019 $DAL
United Continental Holdings Inc Valuation – January 2019 $UAL
JetBlue Airways Corp Valuation – August 2018 $JBLU
SkyWest Inc Valuation – July 2018 $SKYW
American Airlines Group Inc Valuation – May 2018 $AAL
Southwest Airlines Co Valuation – May 2018 $LUV
Alaska Air Group Inc Valuation – May 2018 $ALK
Delta Air Lines Inc Valuation – March 2018 $DAL
United Continental Holdings Inc Valuation – Initial Coverage $UAL

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Best Stocks Below Their Graham Number – February 2019

One popular approach to investing based on Benjamin Graham’s methods is to use the so-called “Graham Number.”  There are some important differences between the Graham Number and the Graham Formula, but using the Graham Number is definitely useful even if the investor only uses it as a screening tactic.

I’ve selected the best companies reviewed by ModernGraham which trade below their Graham Number.  The companies selected all are found suitable for the Defensive Investor and/or the Enterprising Investor, and have been valued as undervalued based on the ModernGraham valuation model.  The full list can be found in the latest issue of my monthly Stocks & Screens report; however, to cut down on the length of the post, I’ve selected the ten which trade furthest below their Graham Number.

Defensive Investors are defined as investors who need to select only the companies that present the least amount of risk. Enterprising Investors, on the other hand, are able to do substantial research and can select companies that present a moderate (though still low) amount of risk. Each company suitable for the Defensive Investor is also suitable for Enterprising Investors.

These companies have demonstrated strong financial positions through passing the rigorous requirements of the ModernGraham Investor and show potential for capital growth based on their current price in relation to intrinsic value.  As such, these graham number stocks may be a great investment if they prove to be suitable for your portfolio after your own additional research.

GameStop Corp. (GME)

GameStop Corp. is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the small size, low current ratio, insufficient earnings stability or growth over the last ten years, and the poor dividend history. The Enterprising Investor is only concerned with the level of debt relative to the net current assets. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Undervalued after growing its EPSmg (normalized earnings) from $2.03 in 2015 to an estimated $2.45 for 2019. This level of demonstrated earnings growth outpaces the market’s implied estimate of 1.3% annual earnings loss over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value above the price.

At the time of valuation, further research into GameStop Corp. revealed the company was trading below its Graham Number of $37.34. The company pays a dividend of $1.52 per share, for a yield of 10.5%, putting it among the best dividend paying stocks today. Its PEmg (price over earnings per share – ModernGraham) was 5.91, which was below the industry average of 37.1, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $-2.68.

GameStop Corp. fares extremely well in the ModernGraham grading system, scoring an A-.  (See the full valuation)

Signet Jewelers Ltd. (SIG)

Signet Jewelers Ltd. is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the insufficient earnings stability or growth over the last ten years, and the poor dividend history. The Enterprising Investor has no initial concerns. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Undervalued after growing its EPSmg (normalized earnings) from $3.86 in 2014 to an estimated $6.07 for 2018. This level of demonstrated earnings growth outpaces the market’s implied estimate of 0.22% annual earnings loss over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value above the price.

At the time of valuation, further research into Signet Jewelers Ltd. revealed the company was trading below its Graham Number of $61.99. The company pays a dividend of $1.04 per share, for a yield of 2.1%, putting it among the best dividend paying stocks today. Its PEmg (price over earnings per share – ModernGraham) was 8.06, which was below the industry average of 30.22, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $-3.32.

Signet Jewelers Ltd. fares extremely well in the ModernGraham grading system, scoring an A-.  (See the full valuation)

Canfor Corporation (TSE:CFP)

Canfor Corporation is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the insufficient earnings stability or growth over the last ten years, and the poor dividend history. The Enterprising Investor is only concerned with the lack of dividends. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Undervalued after growing its EPSmg (normalized earnings) from $0.88 in 2014 to an estimated $2.18 for 2018. This level of demonstrated earnings growth outpaces the market’s implied estimate of 2.34% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value above the price.

At the time of valuation, further research into Canfor Corporation revealed the company was trading below its Graham Number of $32.18. The company does not pay a dividend. Its PEmg (price over earnings per share – ModernGraham) was 13.17, which was below the industry average of 20.82, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $-0.99.

Canfor Corporation performs fairly well in the ModernGraham grading system, scoring a B+.  (See the full valuation)

CNO Financial Group Inc (CNO)

CNO Financial Group Inc is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the poor dividend history. The Enterprising Investor has no initial concerns. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Undervalued after growing its EPSmg (normalized earnings) from $1.01 in 2014 to an estimated $1.56 for 2018. This level of demonstrated earnings growth outpaces the market’s implied estimate of 2.89% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value above the price.

At the time of valuation, further research into CNO Financial Group Inc revealed the company was trading below its Graham Number of $36.61. The company pays a dividend of $0.35 per share, for a yield of 1.6% Its PEmg (price over earnings per share – ModernGraham) was 14.28, which was below the industry average of 36.08, which by some methods of valuation makes it one of the most undervalued stocks in its industry.

CNO Financial Group Inc performs fairly well in the ModernGraham grading system, scoring a B+.  (See the full valuation)

Bed Bath & Beyond Inc. (BBBY)

Bed Bath & Beyond Inc. is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the low current ratio, poor dividend history. The Enterprising Investor has no initial concerns. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Undervalued after growing its EPSmg (normalized earnings) from $4.19 in 2014 to an estimated $4.19 for 2018. This level of demonstrated earnings growth outpaces the market’s implied estimate of 1.57% annual earnings loss over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value above the price.

At the time of valuation, further research into Bed Bath & Beyond Inc. revealed the company was trading below its Graham Number of $34.59. The company pays a dividend of $0.38 per share, for a yield of 1.7% Its PEmg (price over earnings per share – ModernGraham) was 5.36, which was below the industry average of 35.42, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $-3.6.

Bed Bath & Beyond Inc. performs fairly well in the ModernGraham grading system, scoring a B+.  (See the full valuation)

Prudential Financial Inc (PRU)

Prudential Financial Inc is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the insufficient earnings stability over the last ten years. The Enterprising Investor has no initial concerns. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Undervalued after growing its EPSmg (normalized earnings) from $2.17 in 2014 to an estimated $12.54 for 2018. This level of demonstrated earnings growth outpaces the market’s implied estimate of 0.45% annual earnings loss over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value above the price.

At the time of valuation, further research into Prudential Financial Inc revealed the company was trading below its Graham Number of $185.87. The company pays a dividend of $3 per share, for a yield of 3.1%, putting it among the best dividend paying stocks today. Its PEmg (price over earnings per share – ModernGraham) was 7.6, which was below the industry average of 30.02, which by some methods of valuation makes it one of the most undervalued stocks in its industry.

Prudential Financial Inc fares extremely well in the ModernGraham grading system, scoring an A-.  (See the full valuation)

Linamar Corporation (TSE:LNR)

Linamar Corporation is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the low current ratio, insufficient earnings stability over the last ten years. The Enterprising Investor is only concerned with the level of debt relative to the net current assets. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Undervalued after growing its EPSmg (normalized earnings) from $3.32 in 2014 to an estimated $8.11 for 2018. This level of demonstrated earnings growth outpaces the market’s implied estimate of 0.63% annual earnings loss over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value above the price.

At the time of valuation, further research into Linamar Corporation revealed the company was trading below its Graham Number of $99.21. The company pays a dividend of $0.48 per share, for a yield of 0.8% Its PEmg (price over earnings per share – ModernGraham) was 7.25, which was below the industry average of 26.58, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $-18.85.

Linamar Corporation performs fairly well in the ModernGraham grading system, scoring a B+.  (See the full valuation)

Lincoln National Corporation (LNC)

Lincoln National Corporation is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the insufficient earnings stability over the last ten years. The Enterprising Investor has no initial concerns. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Undervalued after growing its EPSmg (normalized earnings) from $4.25 in 2014 to an estimated $7.01 for 2018. This level of demonstrated earnings growth outpaces the market’s implied estimate of 0.58% annual earnings loss over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value above the price.

At the time of valuation, further research into Lincoln National Corporation revealed the company was trading below its Graham Number of $117.31. The company pays a dividend of $0.87 per share, for a yield of 1.7% Its PEmg (price over earnings per share – ModernGraham) was 7.33, which was below the industry average of 30.63, which by some methods of valuation makes it one of the most undervalued stocks in its industry.

Lincoln National Corporation performs fairly well in the ModernGraham grading system, scoring a B+.  (See the full valuation)

Unum Group (UNM)

Unum Group qualifies for both the Defensive Investor and the Enterprising Investor. In fact, the company meets all of the requirements of both investor types, a rare accomplishment indicative of the company’s strong financial position . The Enterprising Investor has no initial concerns. As a result, all value investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Undervalued after growing its EPSmg (normalized earnings) from $2.71 in 2015 to an estimated $4.02 for 2019. This level of demonstrated earnings growth outpaces the market’s implied estimate of 0.17% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value above the price.

At the time of valuation, further research into Unum Group revealed the company was trading below its Graham Number of $68.83. The company pays a dividend of $0.98 per share, for a yield of 2.8%, putting it among the best dividend paying stocks today. Its PEmg (price over earnings per share – ModernGraham) was 8.85, which was below the industry average of 32.96, which by some methods of valuation makes it one of the most undervalued stocks in its industry.

Unum Group fares extremely well in the ModernGraham grading system, scoring an A.  (See the full valuation)

Invesco Ltd. (IVZ)

Invesco Ltd. qualifies for both the Defensive Investor and the Enterprising Investor. In fact, the company meets all of the requirements of both investor types, a rare accomplishment indicative of the company’s strong financial position . The Enterprising Investor has no initial concerns. As a result, all value investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Undervalued after growing its EPSmg (normalized earnings) from $1.89 in 2014 to an estimated $2.39 for 2018. This level of demonstrated earnings growth outpaces the market’s implied estimate of 0.65% annual earnings loss over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value above the price.

At the time of valuation, further research into Invesco Ltd. revealed the company was trading below its Graham Number of $33.89. The company pays a dividend of $1.15 per share, for a yield of 6.7%, putting it among the best dividend paying stocks today. Its PEmg (price over earnings per share – ModernGraham) was 7.21, which was below the industry average of 18, which by some methods of valuation makes it one of the most undervalued stocks in its industry.

Invesco Ltd. fares extremely well in the ModernGraham grading system, scoring an A.  (See the full valuation)

Disclaimer: 

The author held a long position in IVZ but did not hold a position in any other company mentioned in this article at the time of publication and had no specific intention of changing that position within the next 72 hours; however, the author does intend to make some trades in the next 72 hours and may select a company from this list.  See my current holdings here.  This article is not investment advice and all readers are encouraged to speak to a registered investment adviser prior to making any investing decisions.  Please also read our full disclaimer.

Alaska Air Group Inc Valuation – February 2019 $ALK

Company Profile (excerpt from Reuters): Alaska Air Group, Inc., incorporated on March 15, 1985, is the holding company of Alaska Airlines (Alaska), Virgin America Inc., Horizon Air (Horizon) and other business units. The Company operates through three segments: Mainline, Regional and Horizon. Its Mainline segment includes Alaska’s and Virgin America’s scheduled air transportation for passengers and cargo throughout the United States, and in parts of Canada, Mexico, Costa Rica and Cuba. Its Regional segment includes Horizon’s and other third-party carriers’ scheduled air transportation for passengers across a shorter distance network within the United States under capacity purchased arrangements (CPAs). Its Horizon segment includes the capacity sold to Alaska under CPA. Alaska and Virgin America operate fleets of narrowbody passenger jets. Horizon operates a fleet of turboprop aircraft and sells all of its capacity to Alaska pursuant to a CPA.

 

Downloadable PDF version of this valuation:

ModernGraham Valuation of ALK – February 2019

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

 

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $7,682,438,587 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 0.61 Fail
3. Earnings Stability Positive EPS for 10 years prior Pass
4. Dividend Record Dividend Payments for 10 years prior Fail
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 210.23% Pass
6. Moderate PEmg Ratio PEmg < 20 10.79 Pass
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 2.07 Pass
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 0.61 Fail
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 -1.40 Fail
3. Earnings Stability Positive EPS for 5 years prior Pass
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Pass

 

Stage 2: Determination of Intrinsic Value

EPSmg $5.78
MG Growth Estimate 4.34%
MG Value $99.39
Opinion Undervalued
MG Grade B-
MG Value based on 3% Growth $83.87
MG Value based on 0% Growth $49.16
Market Implied Growth Rate 1.14%
Current Price $62.40
% of Intrinsic Value 62.78%

Alaska Air Group, Inc. does not satisfy the requirements of either the Enterprising Investor or the more conservative Defensive Investor. The Defensive Investor is concerned with the low current ratio, poor dividend history. The Enterprising Investor has concerns regarding the level of debt relative to the current assets. As a result, all value investors following the ModernGraham approach should explore other opportunities at this time or proceed cautiously with a speculative attitude.

As for a valuation, the company appears to be Undervalued after growing its EPSmg (normalized earnings) from $4.49 in 2015 to an estimated $5.78 for 2019. This level of demonstrated earnings growth outpaces the market’s implied estimate of 1.14% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value above the price.

At the time of valuation, further research into Alaska Air Group, Inc. revealed the company was trading below its Graham Number of $64.14. The company pays a dividend of $1.28 per share, for a yield of 2.1%, putting it among the best dividend paying stocks today. Its PEmg (price over earnings per share – ModernGraham) was 10.79, which was below the industry average of 10.79. Finally, the company was trading above its Net Current Asset Value (NCAV) of $-43.17.

Alaska Air Group, Inc. performs fairly well in the ModernGraham grading system, scoring a B-.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) -$43.17
Graham Number $64.14
PEmg 10.79
Current Ratio 0.61
PB Ratio 2.07
Current Dividend $1.28
Dividend Yield 2.05%
Number of Consecutive Years of Dividend Growth 6

Useful Links:

 

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 12/1/2018
Total Current Assets $1,787,000,000
Total Current Liabilities $2,942,000,000
Long-Term Debt $1,617,000,000
Total Assets $10,912,000,000
Intangible Assets $2,070,000,000
Total Liabilities $7,161,000,000
Shares Outstanding (Diluted Average) 124,488,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $6.01
Dec2018 $3.52
Dec2017 $7.75
Dec2016 $6.41
Dec2015 $6.56
Dec2014 $4.42
Dec2013 $3.58
Dec2012 $2.20
Dec2011 $1.67
Dec2010 $1.71
Dec2009 $0.84
Dec2008 -$0.94
Dec2007 $0.77
Dec2006 -$0.35
Dec2005 -$0.05
Dec2004 -$0.14
Dec2003 $0.13
Dec2002 -$1.12
Dec2001 -$0.41
Dec2000 -$0.64
Dec1999 $1.27

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $5.78
Dec2018 $5.69
Dec2017 $6.43
Dec2016 $5.39
Dec2015 $4.49
Dec2014 $3.20
Dec2013 $2.40
Dec2012 $1.57
Dec2011 $1.10
Dec2010 $0.68
Dec2009 $0.13
Dec2008 -$0.19
Dec2007 $0.14
Dec2006 -$0.22
Dec2005 -$0.21
Dec2004 -$0.33
Dec2003 -$0.34

Recommended Reading:

Other ModernGraham posts about the company

Alaska Air Group Inc Valuation – May 2018 $ALK
8 Best Stocks for Value Investors This Week – 12/27/16
Alaska Air Group Inc Valuation – December 2016 $ALK
Alaska Air Group Inc. Analysis – Initial Coverage $ALK

Other ModernGraham posts about related companies

Delta Air Lines Inc Valuation – January 2019 $DAL
United Continental Holdings Inc Valuation – January 2019 $UAL
JetBlue Airways Corp Valuation – August 2018 $JBLU
SkyWest Inc Valuation – July 2018 $SKYW
American Airlines Group Inc Valuation – May 2018 $AAL
Southwest Airlines Co Valuation – May 2018 $LUV
Alaska Air Group Inc Valuation – May 2018 $ALK
Delta Air Lines Inc Valuation – March 2018 $DAL
United Continental Holdings Inc Valuation – Initial Coverage $UAL
American Airlines Group Inc Valuation – February 2017 $AAL

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Whirlpool Corp Valuation – February 2019 $WHR

Company Profile (excerpt from Reuters): Whirlpool Corporation, incorporated on August 10, 1955, is a manufacturer and marketer of home appliances. As of December 31, 2016, the Company manufactured products in 14 countries and markets products throughout the world under brand names, such as Whirlpool, KitchenAid, Maytag, Consul, Brastemp, Amana, Bauknecht, Jenn-Air and Indesit. The Company’s segments include North America; Europe, Middle East and Africa (EMEA); Latin America, and Asia. The Company manufactures and markets a line of home appliances and related products. Its principal products are laundry appliances, refrigerators and freezers, cooking appliances, dishwashers, mixers and other small domestic appliances. It also produces hermetic compressors for refrigeration systems.

 

Downloadable PDF version of this valuation:

ModernGraham Valuation of WHR – February 2019

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $9,071,438,805 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 0.82 Fail
3. Earnings Stability Positive EPS for 10 years prior Fail
4. Dividend Record Dividend Payments for 10 years prior Pass
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end -9.60% Fail
6. Moderate PEmg Ratio PEmg < 20 19.89 Pass
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 2.86 Fail
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 0.82 Fail
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 -2.27 Fail
3. Earnings Stability Positive EPS for 5 years prior Fail
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Fail

 

Stage 2: Determination of Intrinsic Value

EPSmg $7.17
MG Growth Estimate -2.36%
MG Value $27.16
Opinion Overvalued
MG Grade D+
MG Value based on 3% Growth $104.01
MG Value based on 0% Growth $60.97
Market Implied Growth Rate 5.70%
Current Price $142.70
% of Intrinsic Value 525.45%

Whirlpool Corporation does not satisfy the requirements of either the Enterprising Investor or the more conservative Defensive Investor. The Defensive Investor is concerned with the low current ratio, insufficient earnings stability or growth over the last ten years, and the high PB ratio. The Enterprising Investor has concerns regarding the level of debt relative to the current assets, and the lack of earnings stability or growth over the last five years. As a result, all value investors following the ModernGraham approach should explore other opportunities at this time or proceed cautiously with a speculative attitude.

As for a valuation, the company appears to be Overvalued after seeing its EPSmg (normalized earnings) decline from $8.51 in 2015 to an estimated $7.17 for 2019. This level of demonstrated earnings growth does not support the market’s implied estimate of 5.7% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value below the price.

At the time of valuation, further research into Whirlpool Corporation revealed the company was trading above its Graham Number of $107.36. The company pays a dividend of $4.55 per share, for a yield of 3.2%, putting it among the best dividend paying stocks today. Its PEmg (price over earnings per share – ModernGraham) was 19.89, which was below the industry average of 24.63, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $-112.83.

Whirlpool Corporation scores quite poorly in the ModernGraham grading system, with an overall grade of D+.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) -$112.83
Graham Number $107.36
PEmg 19.89
Current Ratio 0.82
PB Ratio 2.86
Current Dividend $4.55
Dividend Yield 3.19%
Number of Consecutive Years of Dividend Growth 8

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 12/1/2018
Total Current Assets $7,898,000,000
Total Current Liabilities $9,678,000,000
Long-Term Debt $4,046,000,000
Total Assets $18,347,000,000
Intangible Assets $4,747,000,000
Total Liabilities $15,142,000,000
Shares Outstanding (Diluted Average) 64,200,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $14.31
Dec2018 -$2.72
Dec2017 $4.70
Dec2016 $11.50
Dec2015 $9.83
Dec2014 $8.17
Dec2013 $10.24
Dec2012 $5.06
Dec2011 $4.99
Dec2010 $7.97
Dec2009 $4.34
Dec2008 $5.50
Dec2007 $8.01
Dec2006 $5.67
Dec2005 $6.19
Dec2004 $5.90
Dec2003 $5.91
Dec2002 -$5.79
Dec2001 $0.31
Dec2000 $5.20
Dec1999 $4.56

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $7.17
Dec2018 $4.50
Dec2017 $8.37
Dec2016 $9.79
Dec2015 $8.51
Dec2014 $7.66
Dec2013 $7.11
Dec2012 $5.56
Dec2011 $5.92
Dec2010 $6.36
Dec2009 $5.68
Dec2008 $6.32
Dec2007 $6.60
Dec2006 $5.12
Dec2005 $4.07
Dec2004 $2.77
Dec2003 $1.49

Recommended Reading:

Other ModernGraham posts about the company

Whirlpool Corporation Valuation – April 2018 $WHR
5 Undervalued Stocks for Value Investors with a High Beta – February 2017
10 Undervalued Companies for the Defensive Investor – February 2017
5 Undervalued Stocks for Value Investors with a High Beta – January 2017
10 Undervalued Companies for the Defensive Investor – January 2017

Other ModernGraham posts about related companies

Whirlpool Corporation Valuation – December 2016 $WHR
Whirlpool Corporation Analysis – 2015 Update $WHR
Whirlpool Corporation Annual Valuation – 2014 $WHR
Whirlpool Corp (WHR) Quarterly Valuation – May 2014

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Sealed Air Corp Valuation – February 2019 $SEE

Company Profile (excerpt from Reuters): Sealed Air Corporation, incorporated on January 29, 1996, is engaged in food safety and security, facility hygiene and product protection business. The Company serves a range of end markets, including food and beverage processing, food service, retail, healthcare and industrial, and commercial and consumer applications. The Company’s segments are Food Care (includes Corporate, Medical Applications and New Ventures businesses), Product Care and Corporate.

 

Downloadable PDF version of this valuation:

ModernGraham Valuation of SEE – February 2019

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $6,636,362,622 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 1.04 Fail
3. Earnings Stability Positive EPS for 10 years prior Fail
4. Dividend Record Dividend Payments for 10 years prior Pass
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end -261.02% Fail
6. Moderate PEmg Ratio PEmg < 20 16.84 Pass
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 -18.93 Fail
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 1.04 Fail
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 48.89 Fail
3. Earnings Stability Positive EPS for 5 years prior Pass
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Pass

 

Stage 2: Determination of Intrinsic Value

EPSmg $2.51
MG Growth Estimate 15.00%
MG Value $96.66
Opinion Undervalued
MG Grade C-
MG Value based on 3% Growth $36.40
MG Value based on 0% Growth $21.34
Market Implied Growth Rate 4.17%
Current Price $42.28
% of Intrinsic Value 43.74%

Sealed Air Corp does not satisfy the requirements of either the Enterprising Investor or the more conservative Defensive Investor. The Defensive Investor is concerned with the low current ratio, insufficient earnings stability or growth over the last ten years, and the high PB ratio. The Enterprising Investor has concerns regarding the level of debt relative to the current assets. As a result, all value investors following the ModernGraham approach should explore other opportunities at this time or proceed cautiously with a speculative attitude.

As for a valuation, the company appears to be Undervalued after growing its EPSmg (normalized earnings) from $0.05 in 2015 to an estimated $2.51 for 2019. This level of demonstrated earnings growth outpaces the market’s implied estimate of 4.17% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value above the price.

At the time of valuation, further research into Sealed Air Corp revealed the company was trading above its Graham Number of $0. The company pays a dividend of $0.64 per share, for a yield of 1.5% Its PEmg (price over earnings per share – ModernGraham) was 16.84, which was below the industry average of 17.32, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $-24.63.

Sealed Air Corp receives an average overall rating in the ModernGraham grading system, scoring a C-.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) -$24.63
Graham Number $0.00
PEmg 16.84
Current Ratio 1.04
PB Ratio -18.93
Current Dividend $0.64
Dividend Yield 1.51%
Number of Consecutive Years of Dividend Growth 3

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 12/1/2018
Total Current Assets $1,554,800,000
Total Current Liabilities $1,488,600,000
Long-Term Debt $3,236,500,000
Total Assets $5,050,200,000
Intangible Assets $2,049,300,000
Total Liabilities $5,398,800,000
Shares Outstanding (Diluted Average) 156,100,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $2.69
Dec2018 $1.20
Dec2017 $4.29
Dec2016 $2.46
Dec2015 $1.62
Dec2014 $1.20
Dec2013 $0.58
Dec2012 -$7.32
Dec2011 $0.80
Dec2010 $1.44
Dec2009 $1.35
Dec2008 $0.99
Dec2007 $1.89
Dec2006 $1.47
Dec2005 $1.35
Dec2004 $1.13
Dec2003 $1.00
Dec2002 -$2.15
Dec2001 $0.61
Dec2000 $0.97
Dec1999 $0.84

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $2.51
Dec2018 $2.33
Dec2017 $2.61
Dec2016 $1.08
Dec2015 $0.05
Dec2014 -$0.71
Dec2013 -$1.32
Dec2012 -$1.69
Dec2011 $1.18
Dec2010 $1.39
Dec2009 $1.38
Dec2008 $1.38
Dec2007 $1.51
Dec2006 $1.06
Dec2005 $0.70
Dec2004 $0.36
Dec2003 $0.07

Recommended Reading:

Other ModernGraham posts about the company

Sealed Air Corp Valuation – April 2018 $SEE
Sealed Air Corp Valuation – November 2016 $SEE
30 Companies in the Spotlight This Week – 5/23/15
Sealed Air Corporation Annual Valuation – 2015 $SEE
17 Companies in the Spotlight This Week – 5/10/14

Other ModernGraham posts about related companies

Packaging Corp of America Valuation – January 2019 $PKG
Schweitzer-Mauduit International Inc Valuation – September 2018 $SWM
KapStone Paper and Packaging Corp Valuation – August 2018 $KS
Sonoco Products Co Valuation – August 2018 $SON
Silgan Holdings Inc Valuation – August 2018 $SLGN
Clearwater Paper Corp Valuation – July 2018 $CLW
Intertape Polymer Group Valuation – July 2018 $TSE-ITP
Bemis Co Inc Valuation – June 2018 $BMS
Owens-Illinois Inc Valuation – June 2018 $OI
International Paper Co Valuation – June 2018 $IP

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

FLIR Systems Inc Valuation – February 2019 $FLIR

Company Profile (excerpt from Reuters): FLIR Systems, Inc. (FLIR), incorporated on March 8, 1978, designs, develops, markets and distributes thermal imaging systems, visible-light imaging systems, locater systems, measurement and diagnostic systems and threat-detection solutions. The Company’s segments include Surveillance, Instruments, Security, OEM & Emerging Markets, Maritime and Detection. Its Surveillance segment provides enhanced imaging and recognition solutions under its commercially developed, military qualified (CDMQ) model to a range of military, law enforcement, public safety and other government customers. Its Instruments segment provides devices that image, measure and assess thermal energy, gases and other environmental elements for industrial, commercial, and scientific applications under the FLIR and Extech brands. Its Security segment develops and manufactures a range of cameras and video recording systems for use in commercial, critical infrastructure, and home monitoring applications. Its OEM & Emerging Markets segment provides thermal imaging camera cores and components that are utilized by third parties to create thermal and other types of imaging systems. Its Maritime segment develops and manufactures electronics and imaging instruments for the recreational and commercial maritime market under the FLIR and Raymarine brands. The Detection segment offers sensors, instruments and integrated platform solutions for the detection, identification, and suppression of chemical, biological, radiological, nuclear and explosives (CBRNE) threats.

 

Downloadable PDF version of this valuation:

ModernGraham Valuation of FLIR – February 2019

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $7,250,818,658 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 4.09 Pass
3. Earnings Stability Positive EPS for 10 years prior Pass
4. Dividend Record Dividend Payments for 10 years prior Fail
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 16.70% Fail
6. Moderate PEmg Ratio PEmg < 20 30.16 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 3.87 Fail
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 4.09 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 0.43 Pass
3. Earnings Stability Positive EPS for 5 years prior Pass
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Pass

 

Stage 2: Determination of Intrinsic Value

EPSmg $1.74
MG Growth Estimate 2.69%
MG Value $24.14
Opinion Overvalued
MG Grade C-
MG Value based on 3% Growth $25.20
MG Value based on 0% Growth $14.77
Market Implied Growth Rate 10.83%
Current Price $52.41
% of Intrinsic Value 217.11%

FLIR Systems, Inc. is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the insufficient earnings growth over the last ten years, and the poor dividend history, and the high PEmg and PB ratios. The Enterprising Investor has no initial concerns. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Overvalued after growing its EPSmg (normalized earnings) from $1.47 in 2015 to an estimated $1.74 for 2019. This level of demonstrated earnings growth does not support the market’s implied estimate of 10.83% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value below the price.

At the time of valuation, further research into FLIR Systems, Inc. revealed the company was trading above its Graham Number of $26.61. The company pays a dividend of $0.64 per share, for a yield of 1.2% Its PEmg (price over earnings per share – ModernGraham) was 30.16, which was above the industry average of 29.46. Finally, the company was trading above its Net Current Asset Value (NCAV) of $2.8.

FLIR Systems, Inc. receives an average overall rating in the ModernGraham grading system, scoring a C-.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) $2.80
Graham Number $26.61
PEmg 30.16
Current Ratio 4.09
PB Ratio 3.87
Current Dividend $0.64
Dividend Yield 1.22%
Number of Consecutive Years of Dividend Growth 8

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 12/1/2018
Total Current Assets $1,292,647,000
Total Current Liabilities $316,014,000
Long-Term Debt $421,948,000
Total Assets $2,781,242,000
Intangible Assets $1,051,416,000
Total Liabilities $904,456,000
Shares Outstanding (Diluted Average) 138,509,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $2.32
Dec2018 $2.01
Dec2017 $0.77
Dec2016 $1.20
Dec2015 $1.72
Dec2014 $1.39
Dec2013 $1.22
Dec2012 $1.45
Dec2011 $1.38
Dec2010 $1.54
Dec2009 $1.45
Dec2008 $1.28
Dec2007 $0.89
Dec2006 $0.66
Dec2005 $0.58
Dec2004 $0.46
Dec2003 $0.29
Dec2002 $0.29
Dec2001 $0.20
Dec2000 -$0.23
Dec1999 -$0.48

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $1.74
Dec2018 $1.44
Dec2017 $1.19
Dec2016 $1.40
Dec2015 $1.47
Dec2014 $1.37
Dec2013 $1.37
Dec2012 $1.44
Dec2011 $1.39
Dec2010 $1.32
Dec2009 $1.13
Dec2008 $0.90
Dec2007 $0.67
Dec2006 $0.52
Dec2005 $0.43
Dec2004 $0.30
Dec2003 $0.15

Recommended Reading:

Other ModernGraham posts about the company

FLIR Systems Inc Valuation – April 2018 $FLIR
FLIR Systems Inc Valuation – November 2016 $FLIR
FLIR Systems Inc Valuation – May 2016 $FLIR
FLIR Systems Inc. Valuation – November 2015 Update $FLIR
FLIR Systems Inc. Analysis – August 2015 Update $FLIR

Other ModernGraham posts about related companies

NetApp Inc Valuation – February 2019 $NTAP
Applied Materials Inc Valuation – February 2019 $AMAT
Microchip Technology Inc Valuation – February 2019 $MCHP
Broadcom Inc Valuation – February 2019 $AVGO
KLA-Tencor Corp Valuation – January 2019 $KLAC
TE Connectivity Ltd Valuation – January 2019 $TEL
NVIDIA Corp Valuation – January 2019 $NVDA
Seagate Technology PLC Valuation – January 2019 $STX
Corning Inc Valuation – January 2019 $GLW
HP Inc Valuation – December 2018 $HPQ

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

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