Principal Financial Group Inc. Quarterly Valuation – October 2014 $PFG
Principal Financial Group qualifies for the Enterprising Investor but not the Defensive Investor. The Defensive Investor is turned off by the level of earnings growth over the last ten years, while the Enterprising Investor has no initial concerns.
5 Speculative and Overvalued Companies to Avoid – October 2014
I’ve selected five of the most overvalued companies reviewed by ModernGraham. Each company has been determined to not be suitable for either the Defensive Investor or the Enterprising Investor according to the ModernGraham approach. Here is a summary of each company’s valuation.
DirecTV Annual Valuation – 2014 $DTV
DirecTV presents a speculative situation, as it does not qualify for either the Defensive Investor or the Enterprising Investor. The Defensive Investor is concerned with the low current ratio and the lack of dividends, while the Enterprising Investor also takes issue with the level of debt relative to the current assets and the lack of dividends.
Mead Johnson Nutrition Company Quarterly Valuation – October 2014 $MJN
Mead Johnson Nutrition qualifies for the Enterprising Investor but not the Defensive Investor. The Defensive Investor is concerned by the company’s low current ratio, the short earnings and dividend history, and the high PEmg and PB ratios.
American Express Company Quarterly Valuation – October 2014 $AXP
Enterprising Investors following the ModernGraham approach should keep a keen eye on American Express and pour some time into conducting further research. The Defensive Investor may not feel the same way, with concerns regarding the high PB ratio.
BlackRock Inc. Quarterly Valuation – October 2014 $BLK
BlackRock definitely passes the initial requirements of both the Defensive Investor and the Enterprising Investor. The Defensive Investor’s only concern is the high PEmg ratio, while the Enterprising Investor has slight concerns regarding the level of debt relative to the net current assets.
