Natural Resource Partners L.P. does not fare well in the ModernGraham valuation model after having dropped its EPSmg (normalized earnings) from $2.54 in 2008 to an estimated $1.43 for 2013. The company fails the requirements for both the Defensive Investor and the Enterprising Investor.
National Oilwell Varco is a very intriguing company, as it has passed every requirement of both the Defensive Investor and the Enterprising Investor, except for having a suitably long dividend history. The company has proven to have stable earnings growth and has a very strong balance sheet.
MTS Systems is an attractive company for the Enterprising Investor, having passed all of the requirements of the investor type. However, that is not the case for Defensive Investors.
Like many REITs, Realty Income Corp does not fare well in the ModernGraham system. The company does not pass enough requirements for either the Defensive Investor or the Enterprising Investor.
Oracle Corporation is a company that has displayed strong and consistent earnings growth, and passes the majority of the requirements of both the Defensive Investor and the Enterprising Investor. The company does not qualify for the Defensive Investor, however, because it is currently trading at a high PB ratio and it has not paid a dividend long enough.
We looked at 10 different companies this week. Here’s a summary of the ModernGraham Valuations. For more detailed analysis, click on the name of the company. To see screens of all of our valuations, be sure to get a copy of this month’s edition of ModernGraham Stocks and Screens! The Elite (Defensive or Enterprising and Undervalued) […]
From a fundamentals side of things, Medtronic is an outstanding company. In fact, the only requirement of either the Defensive Investor or the Enterprising Investor that the company does not fulfill is the requirement that the PB ratio be less than 2.5.
Mastercard Inc. is a company that has demonstrated exceptional growth since the end of the financial crisis. The company’s EPSmg (normalized earnings) have gone from $2.07 in 2008 to an estimated $20.12 for 2013.
Public Storage is a company that fails to satisfy either the Defensive Investor or the Enterprising Investor because of its low level of current assets. The ModernGraham system puts a high emphasis on the current ratio, and Public Storage’s balance sheet is largely based on its real estate holdings (which is true for most REITs).
Fedex Corporation is a company whose earnings have been a little unstable over the ten year historical period we’ve reviewed. The company showed great growth during the first half of the period, then had a strong pull back from $6.48 in EPS for 2007 to $0.31 for 2009.