5 Undervalued Companies for the Enterprising Investor – April 2014

image (5)There are a number of great companies in the market today. By using the ModernGraham Valuation Model, I’ve selected the five most undervalued companies reviewed by ModernGraham. Each company has been determined to be suitable for the Enterprising Investor according to the ModernGraham approach. This is a sample of one screen that is included in ModernGraham Stocks & Screens.  Defensive Investors are defined as investors who are not able or willing to do substantial research into individual investments, and therefore 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, so Enterprising Investors may also be interested in reviewing 5 Undervalued Companies for the Defensive Investor – April 2014 while also conducting further research into the following companies.

 

Ford Motor Company (F)

500px-Ford_Motor_Company_Logo.svgFord Motor Company remains unsuitable for the Defensive Investor due to its lack of stability in earnings and dividends over the ten year period.  The Enterprising Investor looks at a much shorter time horizon, though, and the company passes all of the requirements of this investor type.  As a result, Enterprising Investors seeking to follow the ModernGraham approach based on Benjamin Graham’s methods will feel comfortable proceeding with further research.  As for a valuation, the company performs well in the ModernGraham valuation model after growing its EPSmg (normalized earnings) from -$3.60 in 2008 to $2.23 for 2013.  This solid level of growth is not reflected by the market, as the market is currently implying a growth rate estimate of -0.66%.  In other words, the market price indicates an expectation that the company’s EPSmg will shrink by 0.66% annually over the next 7-10 years.  Clearly this assumption is not supported by the historical achievements of the company, and the ModernGraham valuation model accordingly returns an intrinsic value estimate that exceeds the market price.  (Read the full valuation here)

F Chart

F data by YCharts

Freeport-McMoRan Copper & Gold Inc. (FCX)

500px-Freeport_McMoRan.svgFreePort-McMoran is an interesting company in the ModernGraham valuation model.  It does not pass the requirements of the Defensive Investor, as it has not consistently paid dividends over the last ten years, and it has not shown earnings stability over the last ten years.  But it does pass the requirements of the Enterprising Investor, though it has a higher level of debt relative to current assets than the investor type likes to see.  As a result, Enterprising Investors should feel comfortable proceeding with their research, beginning with a review of a Glance at the Dow and 5 Low PEmg Companies for the Enterprising Investor.  From a valuation perspective, the ModernGraham valuation is affected significantly by the large earnings loss in 2008, which has caused the EPSmg (normalized earnings) figure for 2009 to be very low in relation to 2013.  As it stands, the EPSmg have grown from -$1.67 to $3.48, indicating a high level of growth that would appear to significantly outpace the market’s implied estimate of 0.49% earnings growth.  This has led the model to return an intrinsic value estimate that is well above the market price, and the overall result that the company is undervalued is supported by the valuation based on only 3% growth. (Read the full valuation here)

FCX Chart

FCX data by YCharts

Capital One Financial (COF)

500px-Capital_One_Financial_logo.svgCapital One Financial is a great company for Enterprising Investors to look at in more detail, but it does not quite qualify for the Defensive Investor because it has not shown sufficient growth in its earnings over the ten year historical period.  That said, the company passes all of the requirements of the Enterprising Investor.  As a result, Enterprising Investors following the ModernGraham approach based on Benjamin Graham’s methods should feel very comfortable proceeding with further research into the company and comparing it to competitors through a review of ModernGraham’s valuation of JP Morgan Chase (JPM) and ModernGraham’s valuation of Wells Fargo Inc. (WFC).  From a valuation side of things, the company appears to be significantly undervalued after growing its EPSmg (normalized earnings) from $3.14 in 2009 to $6.56 for 2013.  This solid level of demonstrated growth surpasses the market’s implied estimate of 1.46% earnings growth and leads the ModernGraham valuation model to return an estimate of intrinsic value that is well above the market price.  (Read the full valuation here)

COF Chart

COF data by YCharts

Apple Inc. (AAPL)

500px-Apple_logo_black.svgApple Inc. is an excellent company for Enterprising Investors, having failed only the investor type’s current ratio requirement.  The company does not qualify for the Defensive Investor due to its low current ratio, lack of a long enough dividend record, and high PB ratio.  As a result, Enterprising Investors should feel very comfortable proceeding with further research into the company and its competitors, including a review of ModernGraham’s valuation of Microsoft (MSFT) and ModernGraham’s valuation of Google (GOOG).  As for a valuation, the company appears to be significantly undervalued.  Apple has grown its EPSmg (normalized earnings) from $9.22 to an estimated $37.86 for 2014, a growth rate that far outpaces the market’s implied estimate of only 2.68% earnings growth.  The ModernGraham valuation model has accordingly returned an estimate of intrinsic value that is much higher than the market price.  (Read the full valuation here)

AAPL Chart

AAPL data by YCharts

Gannett Co., Inc. (GCI)

500px-Gannett_logo_2011.svgGannett is an intriguing company for Enterprising Investors, after having passed every requirement of the investor type except the debt to current assets requirement.  The company does not qualify for Defensive Investors, however, because of the current ratio being too low, and the lack of earnings stability or sufficient growth over the ten year period.  As a result, Enterprising Investors should feel very comfortable proceeding with further research to determine if Gannett is suitable for their individual portfolios, keeping in mind the 7 Key Tips to Value Investing.  From purely a valuation standpoint, the company appears undervalued, after growing EPSmg (normalized earnings) from -$6.63 in 2008 to an estimated $1.93 for 2013.  This level of growth significantly outpaces the market’s current implied estimate of growth (2.71%), and the ModernGraham valuation model indicates a value around $74.  (Read the full valuation here)
GCI Chart

GCI data by YCharts

What do you think?  Are these companies a good value for Enterprising Investors?  Is there a company you like better?  Leave a comment on our Facebook page or mention @ModernGraham on Twitter to discuss.

Disclaimer:  The author held a position in Ford Motor Company (F) and Apple Inc. (AAPL), but did not hold a position in any other company mentioned in this article at the time of publication and had no intention of changing those holdings within the next 72 hours.

KLA-Tencor Corp (KLAC) Quarterly Valuation – April 2014

KLA_logolockup_RGBBenjamin Graham taught that Intelligent Investors must do a thorough fundamental analysis of investment opportunities to determine their intrinsic value and inherent risk.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a specific look at how KLA-Tencor Corp fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): KLA-Tencor Corporation (KLA-Tencor) is engaged in the design, manufacture and marketing of process control and yield management solutions for the semiconductor and related nanoelectronics industries. KLA-Tencor’s offerings include the Chip Manufacturing, Wafer Manufacturing, Reticle Manufacturing, Complementary Metal-Oxide-Semiconductor (CMOS) Image Sensors Manufacturing, Solar Manufacturing, light emitting diode (LED) Manufacturing, Data Storage Media/Head Manufacturing, Microelectromechanical Systems (MEMS) Manufacturing, and General Purpose/Lab Applications. It also provides refurbished KLA-Tencor tools as part of its K-T Certified program for customers manufacturing larger design-rule devices, as well as service and support for its products. The Company’s products are used in a number of other industries, including the LED, data storage and photovoltaic industries, as well as general materials research.

KLAC Chart

KLAC data by YCharts

Defensive Investor – must pass at least 6 of the following 7 tests: Score = 5/7

  1. Adequate Size of Enterprise – market capitalization of at least $2 billion – PASS
  2. Sufficiently Strong Financial Condition – current ratio greater than 2 – PASS
  3. Earnings Stability – positive earnings per share for at least 10 straight years – FAIL
  4. Dividend Record – has paid a dividend for at least 10 straight years – PASS
  5. Earnings Growth – earnings per share has increased by at least 1/3 over the last 10 years using 3 year averages at beginning and end of period – PASS
  6. Moderate PEmg ratio – PEmg is less than 20 – PASS
  7. Moderate Price to Assets – PB ratio is less than 2.5 or PB x PEmg is less than 50 – FAIL

Enterprising Investor – must pass at least 4 of the following 5 tests or be suitable for a defensive investor: Score = 5/5

  1. Sufficiently Strong Financial Condition, Part 1 – current ratio greater than 1.5 – PASS
  2. Sufficiently Strong Financial Condition, Part 2 – Debt to Net Current Assets ratio less than 1.1 – PASS
  3. Earnings Stability – positive earnings per share for at least 5 years – PASS
  4. Dividend Record – currently pays a dividend – PASS
  5. Earnings growth – EPSmg greater than 5 years ago – PASS

Valuation Summary

Key Data:

Recent Price $68.03
MG Value $140.68
MG Opinion Undervalued
Value Based on 3% Growth $52.98
Value Based on 0% Growth $31.06
Market Implied Growth Rate 5.06%
Net Current Asset Value (NCAV) $15.71
PEmg 18.62
Current Ratio 4.86
PB Ratio 3.19

Balance Sheet – 12/31/2013

Current Assets $4,507,500,000
Current Liabilities $928,000,000
Total Debt $747,600,000
Total Assets $5,440,700,000
Intangible Assets $352,700,000
Total Liabilities $1,890,500,000
Outstanding Shares 166,580,000

Earnings Per Share

2014 (estimate) $3.62
2013 $3.21
2012 $4.44
2011 $4.66
2010 $1.23
2009 -$3.07
2008 $1.95
2007 $2.61
2006 $1.86
2005 $2.32
2004 $1.21

Earnings Per Share – ModernGraham

2014 (estimate) $3.65
2013 $3.15
2012 $2.69
2011 $1.70
2010 $0.45
2009 $0.42

Dividend History

KLAC Dividend Chart

KLAC Dividend data by YCharts

Conclusion:

KLA-Tencor is a very intriguing company for the Enterprising Investor, but is not suitable for the Defensive Investor.  The company has shown insufficient earnings stability and trades at a PB ratio too high for the Defensive Investor; however, the company passes all of the Enterprising Investor’s requirements.  As a result, Enterprising Investors should feel very comfortable proceeding with further research into the company as well as other opportunities through a review of 5 Low PEmg Companies for the Enterprising Investor and 5 Undervalued Companies for the Enterprising Investor.  From a valuation side of things, the company appears to be significantly undervalued after growing its EPSmg (normalized earnings) from $0.45 in 2010 to an estimated $3.65 for 2014.  This level of demonstrated growth outpaces the market’s implied estimate of 5.06% earnings growth and leads the ModernGraham valuation model to return an estimate of intrinsic value that is well above the market price.

The next part of the analysis is up to individual investors, and requires discussion of the company’s prospects.  What do you think?  What value would you put on KLA-Tencor Corp (KLAC)?  Where do you see the company going in the future?  Is there a company you like better?  Leave a comment on our Facebook page or mention @ModernGraham on Twitter to discuss.

If you like our valuations, why not check out ModernGraham Stocks & Screens?  It’s a great way to review the valuations while screening for things like low PE ratio, undervalued companies, etc.!

Disclaimer:  The author did not hold a position in KLA-Tencor Corp (KLAC) or any other company mentioned in the article at the time of publication and had no intention of changing that position within the next 72 hours.

Logo taken from wikipedia; this article is not affiliated with the company in any manner.

March 2014 in Review

image (8)Site News

March was another strong month for ModernGraham.  We had over 33,500 visits by 18,000 unique visitors, a 20% increase over last month, while the number of people who have signed up for the free daily email list grew from 2,402 to 3,045!  We released the fourth issue of the monthly publication, ModernGraham Stocks & Screens, available for premium subscribers, listing all of the valuations and screens them for various criteria including Low PEmg, Undervalued Companies, Low Beta, etc.  This month’s edition includes 217 companies.  March also saw the continuation of the ModernGraham Book Club, and a number of value investors are joining together in reading and discussing The Intelligent Investor by Benjamin Graham (affiliate link).

Most Popular Content from March out of 96 posts:

  1. 5 Undervalued Companies for the Defensive Investor – March 2014
  2. 5 Undervalued Companies for the Enterprising Investor – March 2014
  3. 5 Outstanding Dow Components – March 2014
  4. Apple Inc. (AAPL) Quarterly Valuation
  5. 16 Companies in the Spotlight This Week – 3/1/14

Companies Reviewed in February

Apple Inc. (AAPL)
Abbott Laboratories (ABT)
Accenture Plc (ACN)
Actavis plc Ordinary Shares (ACT)
Adobe Systems Incorporated (ADBE)
Analog Devices, Inc. (ADI)
AFLAC Incorporated (AFL)
Amgen, Inc. (AMGN)
Best Buy Co., Inc. (BBY)
C.R. Bard, Inc. (BCR)
B&G Foods, Inc. (BGS)
Cameron International Corporation (CAM)
The Chubb Corporation (CB)
Deere & Company (DE)
Consolidated Edison, Inc. (ED)
EMC Corporation (EMC)
Freeport-McMoRan Copper & Gold Inc. (FCX)
FedEx Corporation (FDX)
General Electric Company (GE)
GRAHAM HOLDINGS COMPANY (GHC)
Google Inc (GOOG)
Garmin Ltd. (GRMN)
Halliburton Company (HAL)
Huntington Bancshares Incorporated (HBAN)
Host Hotels and Resorts Inc (HST)
International Game Technology (IGT)
Infosys Ltd ADR (INFY)
Jacobs Engineering Group Inc (JEC)
Kimco Realty Corp (KIM)
The Coca-Cola Company (KO)
Leggett & Platt, Inc. (LEG)
Mastercard Inc (MA)
Marriott International Inc (MAR)
Medtronic, Inc. (MDT)
Monsanto Company (MON)
Marathon Oil Corporation (MRO)
Motorola Solutions Inc (MSI)
MTS Systems Corporation (MTSC)
NASDAQ OMX Group, Inc. (NDAQ)
National-Oilwell Varco, Inc. (NOV)
National Presto Industries Inc. (NPK)
Norfolk Southern Corp. (NSC)
Olin Corporation (OLN)
Omnicom Group Inc. (OMC)
Oracle Corporation (ORCL)
Occidental Petroleum Corporation (OXY)
Paychex, Inc. (PAYX)
PACCAR Inc (PCAR)
Pfizer Inc. (PFE)
Psychemedics Corp. (PMD)
Public Storage (PSA)
QUALCOMM, Inc. (QCOM)
REGAL-BELOIT CORPORATION (RBC)
Rowan Companies PLC (RDC)
Raytheon Company (RTN)
Charles Schwab Corp (SCHW)
Schlumberger Limited. (SLB)
Teradata Corporation (TDC)
Tidewater Inc. (TDW)
TECO Energy, Inc. (TE)
Target Corporation (TGT)
Texas Instruments Incorporated (TXN)
Urban Outfitters, Inc. (URBN)
VF Corp (VFC)
Viacom, Inc. (VIAB)
Verizon Communications Inc. (VZ)
Waters Corporation (WAT)
Western Digital Corp (WDC)
Wolverine World Wide, Inc. (WWW)
Xcel Energy Inc (XEL)
XL Group plc (XL)
Exxon Mobil Corporation (XOM)
Yum! Brands, Inc. (YUM)
Zimmer Holdings, Inc. (ZMH)
Zoetis Inc (ZTS)

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Thank you all for taking the time to visit this site and read the work I’ve put together!

5 Low PEmg Companies for the Enterprising Investor – March 2014

imageThere are a number of great companies in the market today. By using the ModernGraham Valuation Model, I’ve selected the five lowest PEmg (price / normalized earnings) companies reviewed by ModernGraham. Each company has been determined to be suitable for the Enterprising Investor according to the ModernGraham approach. This is a sample of one screen that is included in ModernGraham Stocks & Screens, our monthly publication.  Defensive Investors are defined as investors who are not able or willing to do substantial research into individual investments, and therefore 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. Enterprising Investors may also be interested in reviewing 5 Undervalued Companies for the Enterprising Investor while also conducting further research into the following companies.

This month, Coach Inc. (COH) drops off the list and is replaced by Freeport-McMoRan Copper and Gold (FCX).

Ford Motor Company (F)

500px-Ford_Motor_Company_Logo.svgFord Motor Company remains unsuitable for the Defensive Investor due to its lack of stability in earnings and dividends over the ten year period.  The Enterprising Investor looks at a much shorter time horizon, though, and the company passes all of the requirements of this investor type.  As a result, Enterprising Investors seeking to follow the ModernGraham approach based on Benjamin Graham’s methods will feel comfortable proceeding with further research.  An example of further research would be to look at other companies that pass the ModernGraham requirements through a review of ModernGraham Stocks & Screens.  As for a valuation, the company performs well in the ModernGraham valuation model after growing its EPSmg (normalized earnings) from -$3.60 in 2008 to $2.23 for 2013.  This solid level of growth is not reflected by the market, as the market is currently implying a growth rate estimate of -0.82%.  In other words, the market price indicates an expectation that the company’s EPSmg will shrink by 0.82% annually over the next 7-10 years.  Clearly this assumption is not supported by the historical achievements of the company, and the ModernGraham valuation model accordingly returns an intrinsic value estimate that exceeds the market price. (See the full valuation here)
F Chart

F data by YCharts

Freeport-McMoRan (FCX)

500px-Freeport_McMoRan.svgFreePort-McMoran is an interesting company in the ModernGraham valuation model.  It does not pass the requirements of the Defensive Investor, as it has not consistently paid dividends over the last ten years, and it has not shown earnings stability over the last ten years.  But it does pass the requirements of the Enterprising Investor, though it has a higher level of debt relative to current assets than the investor type likes to see.  As a result, Enterprising Investors should feel comfortable proceeding with their research, beginning with a review of a Glance at the Dow and 5 Low PEmg Companies for the Enterprising Investor.  From a valuation perspective, the ModernGraham valuation is affected significantly by the large earnings loss in 2008, which has caused the EPSmg (normalized earnings) figure for 2009 to be very low in relation to 2013.  As it stands, the EPSmg have grown from -$1.67 to $3.48, indicating a high level of growth that would appear to significantly outpace the market’s implied estimate of 0.17% earnings growth.  This has led the model to return an intrinsic value estimate that is well above the market price, and the overall result that the company is undervalued is supported by the valuation based on only 3% growth. (See the full valuation here)FCX Chart

FCX data by YCharts

Capital One Financial Corp (COF)

500px-Capital_One_Financial_logo.svgCapital One Financial is a company that stands out from its peers, having survived the financial meltdown without posting a negative earnings year.  This company is not suitable for the Defensive Investor, due to not sufficiently growing earnings over the ten year period, but it is suitable for the Enterprising Investor.  Capital One appears to have solid earnings stability, a strong dividend history, and is trading at low PEmg and PB ratios.  Value investors seeking to follow Benjamin Graham’s methods for the Enterprising Investor should feel very comfortable proceeding with further research, beginning with a review of ModernGraham’s Valuation of American Express (AXP).  In terms of a valuation, the company has grown EPSmg (normalized earnings) from $3.14 in 2009 to an estimated $6.36 in 2013.  This is solid growth that more than supports the market’s implied estimate for growth of 1.46%, indicating the company may be undervalued presently. (See the full valuation here)
COF Chart

COF data by YCharts

Unum Group (UNM)

Unum-logoUnum Group is a rather attractive company for the Enterprising Investor, and will likely soon qualify for the Defensive Investor as well.  Currently, the company does not qualify for the Defensive Investor because it had a negative earnings year in 2004, so it has not met the requirement of 10 straight years of positive earnings.  Next year it will more than likely satisfy that requirement, but for now Defensive Investors should merely keep the company on the watch list.  Enterprising Investors wishing to follow the ModernGraham approach based on Benjamin Graham’s methods should feel good proceeding with further research including a review of ModernGraham’s valuation of AFLAC Inc. (AFL) and other companies that pass the ModernGraham requirements.  From a valuation side of things, the company has done well, having grown its EPSmg (normalized earnings) from $1.33 in 2008 to $2.64 for 2013.  This solid level of growth outpaces the market’s implied estimate for growth of only 2.26%, leading the ModernGraham valuation model to return an intrinsic value greater than the market price.  As a result, the company appears to be undervalued at the present time. (See the full valuation here)
UNM Chart

UNM data by YCharts

Gannett Co., Inc. (GCI)

500px-Gannett_logo_2011.svgGannett is an intriguing company for Enterprising Investors, after having passed every requirement of the investor type except the debt to current assets requirement.  The company does not qualify for Defensive Investors, however, because of the current ratio being too low, and the lack of earnings stability or sufficient growth over the ten year period.  As a result, Enterprising Investors should feel very comfortable proceeding with further research to determine if Gannett is suitable for their individual portfolios, keeping in mind the 7 Key Tips to Value Investing.  From purely a valuation standpoint, the company appears undervalued, after growing EPSmg (normalized earnings) from -$6.63 in 2008 to an estimated $1.93 for 2013.  This level of growth significantly outpaces the market’s current implied estimate of growth (3.34%), and the ModernGraham valuation model indicates a value around $74. (See the full valuation here)
GCI Chart

GCI data by YCharts

What do you think?  Are these companies a good value for Enterprising Investors?  Is there a company you like better?  Leave a comment on our Facebook page or mention @ModernGraham on Twitter to discuss.

Disclaimer:  The author held a long position in Ford Motor Company (F) but did not hold a position in any other company mentioned in this article at the time of publication and had no intention of changing those holdings within the next 72 hours.

5 Undervalued Companies for the Enterprising Investor – March 2014

image (5)There are a number of great companies in the market today. By using the ModernGraham Valuation Model, I’ve selected the five most undervalued companies reviewed by ModernGraham. Each company has been determined to be suitable for the Enterprising Investor according to the ModernGraham approach. This is a sample of one screen that is included in ModernGraham Stocks & Screens, our monthly publication.  Defensive Investors are defined as investors who are not able or willing to do substantial research into individual investments, and therefore 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, so Enterprising Investors may also be interested in reviewing 5 Undervalued Companies for the Defensive Investor – March 2014 while also conducting further research into the following companies.

This month, FreePort-McMoRan Copper & Gold Inc. (FCX) is added to the list, replacing Bed Bath & Beyond (BBBY).

Ford Motor Company (F)

500px-Ford_Motor_Company_Logo.svgFord Motor Company remains unsuitable for the Defensive Investor due to its lack of stability in earnings and dividends over the ten year period.  The Enterprising Investor looks at a much shorter time horizon, though, and the company passes all of the requirements of this investor type.  As a result, Enterprising Investors seeking to follow the ModernGraham approach based on Benjamin Graham’s methods will feel comfortable proceeding with further research.  An example of further research would be to look at other companies that pass the ModernGraham requirements through a review of ModernGraham Stocks & Screens.  As for a valuation, the company performs well in the ModernGraham valuation model after growing its EPSmg (normalized earnings) from -$3.60 in 2008 to $2.23 for 2013.  This solid level of growth is not reflected by the market, as the market is currently implying a growth rate estimate of -0.82%.  In other words, the market price indicates an expectation that the company’s EPSmg will shrink by 0.82% annually over the next 7-10 years.  Clearly this assumption is not supported by the historical achievements of the company, and the ModernGraham valuation model accordingly returns an intrinsic value estimate that exceeds the market price.  (Read the full valuation here)
F Chart

F data by YCharts

Freeport-McMoRan Copper & Gold Inc. (FCX)

500px-Freeport_McMoRan.svgFreePort-McMoran is an interesting company in the ModernGraham valuation model.  It does not pass the requirements of the Defensive Investor, as it has not consistently paid dividends over the last ten years, and it has not shown earnings stability over the last ten years.  But it does pass the requirements of the Enterprising Investor, though it has a higher level of debt relative to current assets than the investor type likes to see.  As a result, Enterprising Investors should feel comfortable proceeding with their research, beginning with a review of a Glance at the Dow and 5 Low PEmg Companies for the Enterprising Investor.  From a valuation perspective, the ModernGraham valuation is affected significantly by the large earnings loss in 2008, which has caused the EPSmg (normalized earnings) figure for 2009 to be very low in relation to 2013.  As it stands, the EPSmg have grown from -$1.67 to $3.48, indicating a high level of growth that would appear to significantly outpace the market’s implied estimate of 0.17% earnings growth.  This has led the model to return an intrinsic value estimate that is well above the market price, and the overall result that the company is undervalued is supported by the valuation based on only 3% growth. (Read the full valuation here)
FCX Chart

FCX data by YCharts

Capital One Financial (COF)

500px-Capital_One_Financial_logo.svgCapital One Financial is a company that stands out from its peers, having survived the financial meltdown without posting a negative earnings year.  This company is not suitable for the Defensive Investor, due to not sufficiently growing earnings over the ten year period, but it is suitable for the Enterprising Investor.  Capital One appears to have solid earnings stability, a strong dividend history, and is trading at low PEmg and PB ratios.  Value investors seeking to follow Benjamin Graham’s methods for the Enterprising Investor should feel very comfortable proceeding with further research, beginning with a review of ModernGraham’s Valuation of American Express (AXP).  In terms of a valuation, the company has grown EPSmg (normalized earnings) from $3.14 in 2009 to an estimated $6.36 in 2013.  This is solid growth that more than supports the market’s implied estimate for growth of 1.44%, indicating the company may be undervalued presently.  (Read the full valuation here)
COF Chart

COF data by YCharts

Apple Inc. (AAPL)

500px-Apple_logo_black.svgApple Inc. is an excellent company for Enterprising Investors, having failed only the investor type’s current ratio requirement.  The company does not qualify for the Defensive Investor due to its low current ratio, lack of a long enough dividend record, and high PB ratio.  As a result, Enterprising Investors should feel very comfortable proceeding with further research into the company and its competitors, including a review of ModernGraham’s valuation of Microsoft (MSFT) and ModernGraham’s valuation of Google (GOOG).  As for a valuation, the company appears to be significantly undervalued.  Apple has grown its EPSmg (normalized earnings) from $9.22 to an estimated $37.86 for 2014, a growth rate that far outpaces the market’s implied estimate of only 2.76% earnings growth.  The ModernGraham valuation model has accordingly returned an estimate of intrinsic value that is much higher than the market price.  (Read the full valuation here)
AAPL Chart

AAPL data by YCharts

Gannett Co., Inc. (GCI)

500px-Gannett_logo_2011.svgGannett is an intriguing company for Enterprising Investors, after having passed every requirement of the investor type except the debt to current assets requirement.  The company does not qualify for Defensive Investors, however, because of the current ratio being too low, and the lack of earnings stability or sufficient growth over the ten year period.  As a result, Enterprising Investors should feel very comfortable proceeding with further research to determine if Gannett is suitable for their individual portfolios, keeping in mind the 7 Key Tips to Value Investing.  From purely a valuation standpoint, the company appears undervalued, after growing EPSmg (normalized earnings) from -$6.63 in 2008 to an estimated $1.93 for 2013.  This level of growth significantly outpaces the market’s current implied estimate of growth (3.05%), and the ModernGraham valuation model indicates a value around $74.  (Read the full valuation here)
GCI Chart

GCI data by YCharts

What do you think?  Are these companies a good value for Enterprising Investors?  Is there a company you like better?  Leave a comment on our Facebook page or mention @ModernGraham on Twitter to discuss.

Disclaimer:  The author held a position in Ford Motor Company (F) and Apple Inc. (AAPL), but did not hold a position in any other company mentioned in this article at the time of publication and had no intention of changing those holdings within the next 72 hours.

19 Companies in the Spotlight This Week – 3/15/14

image (7)We looked at 19 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)

  • 500px-Apple_logo_black.svgApple Inc. (AAPL) – Apple Inc. is an excellent company for Enterprising Investors, having failed only the investor type’s current ratio requirement.  The company does not qualify for the Defensive Investor due to its low current ratio, lack of a long enough dividend record, and high PB ratio.  As a result, Enterprising Investors should feel very comfortable proceeding with further research into the company and its competitors, including a review of ModernGraham’s valuation of Microsoft (MSFT) and ModernGraham’s valuation of Google (GOOG).  As for a valuation, the company appears to be significantly undervalued.  Apple has grown its EPSmg (normalized earnings) from $9.22 to an estimated $37.86 for 2014, a growth rate that far outpaces the market’s implied estimate of only 2.76% earnings growth.  The ModernGraham valuation model has accordingly returned an estimate of intrinsic value that is much higher than the market price.

 

  • 500px-Freeport_McMoRan.svgFreePort-McMoran (FCX) – FreePort-McMoran is an interesting company in the ModernGraham valuation model.  It does not pass the requirements of the Defensive Investor, as it has not consistently paid dividends over the last ten years, and it has not shown earnings stability over the last ten years.  But it does pass the requirements of the Enterprising Investor, though it has a higher level of debt relative to current assets than the investor type likes to see.  As a result, Enterprising Investors should feel comfortable proceeding with their research, beginning with a review of a Glance at the Dow and 5 Low PEmg Companies for the Enterprising Investor.  From a valuation perspective, the ModernGraham valuation is affected significantly by the large earnings loss in 2008, which has caused the EPSmg (normalized earnings) figure for 2009 to be very low in relation to 2013.  As it stands, the EPSmg have grown from -$1.67 to $3.48, indicating a high level of growth that would appear to significantly outpace the market’s implied estimate of 0.17% earnings growth.  This has led the model to return an intrinsic value estimate that is well above the market price, and the overall result that the company is undervalued is supported by the valuation based on only 3% growth.

 

The Good (Defensive or Enterprising and Fairly Valued)

  • Accenture PLC (ACN) – Accenture qualifies for the Enterprising Investor after passing all of the investor type’s requirements except for the current ratio requirement.  The company does not qualify for the Defensive Investor, though, because in addition to failing the current ratio requirement, the company also is currently trading at high PEmg and PB ratios.  As a result, Enterprising Investors should feel comfortable putting the company on a watch list while conducting further research, including a review of ModernGraham’s valuation of International Business Machines (IBM) and 5 Outstanding Dow Components.  From a valuation perspective, the company appears fairly valued after growing its EPSmg (normalized earnings) from $1.99 in 2010 to an estimated $3.98 for 2014.  This solid level of growth supports the markets current implied estimate for 6.28% earnings growth, and leads the ModernGraham valuation model to return an estimate of intrinsic value that falls within a safety margin relative to the market price.

 

  • Amgen Inc. (AMGN) – Amgen is suitable for the Enterprising Investor but not the Defensive Investor, having failed the Defensive Investor’s requirement of dividend payments for over ten years, as well as having high PEmg and PB ratios.  The company only fails the Enterprising Investor’s requirement regarding the level of debt relative to the company’s current assets, but that is not enough to turn away the Enterprising Investor.  As a result, Enterprising Investors should feel comfortable proceeding with further research into the company as well as other opportunities, including a review of 5 Undervalued Companies for the Defensive Investor, and a review of ModernGraham’s valuation of Baxter International (BAX).  From a valuation perspective, the company appears to be fairly valued at the current time, after growing EPSmg from $3.63 in 2009 to $5.43 in 2013.  This level of demonstrated growth supports the market’s current implied estimate of 7.08% earnings growth, and leads the ModernGraham valuation model to return an estimate of intrinsic value that is within a margin of safety relative to the market price.

 

  • B&G Foods Inc. (BGS) – B&G Foods is not suitable for the Defensive Investor, having only passed the investor type’s requirements regarding earnings stability and earnings growth.  The Enterprising Investor, being willing to do much more research into the company, does not have such strict requirements, and the company qualifies for further research.  As a result, Enterprising Investors should feel comfortable proceeding with their research.  From a valuation side of things, the company appears to be fairly valued.  EPSmg (normalized earnings) have grown from $0.40 in 2009 to $0.97 for 2013, a level of demonstrated growth that supports the market’s implied estimate of 11.07% earnings growth.  The ModernGraham valuation model has returned an estimate of intrinsic value that falls within a margin of safety in relation to the price.

 

  • The Chubb Corporation (CB) – The Chubb Corporation is a strong company that is suitable for either the Defensive Investor or the Enterprising Investor.  The company passes all of the requirements of each investor type, indicating it has strong fundamentals and should present a lower level of risk than many other companies.  As a result, value investors seeking to follow the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with further research, keeping in mind the 7 Key Tips to Value Investing.  From a valuation side of things, the company appears fairly valued, having grown its EPSmg (normalized earnings) from $5.87 in 2009 to $7.00 for 2013.  This level of growth supports the market’s implied estimate of 2% earnings growth, and the ModernGraham valuation model returns an estimate of intrinsic value that falls within a safety margin in relation to the market price.

The Mediocre (Defensive or Enterprising and Overvalued)

  • Abbott Laboratories (ABT) – Abbott Labs is a very strong company at the initial stages of the ModernGraham analysis, having passed all of the requirements of the Defensive Investor.  The company also passes the requirements of the Enterprising Investor, except for the requirement regarding earnings growth.  As a result, value investors seeking to follow the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding further with additional research including a review of ModernGraham’s valuation of Johnson and Johnson (JNJ).  Moving on to the valuation stage, the company does not fare well after exhibiting a lack of earnings growth over the last five years.  EPSmg (normalized earnings) have gone from $2.79 in 2009 to $2.74 for 2014, and this lack of growth clearly does not support the market’s implied estimate of 2.98% earnings growth going forward.  Accordingly, the ModernGraham valuation model has returned an estimate of intrinsic value that falls below a margin of safety relative to the price.

 

  • Adobe Systems Inc. (ADBE) – Adobe Systems is not suitable for the Defensive Investor, due to the lack of a dividend payment, insufficient earnings growth over the ten year period, and high PEmg and PB ratios.  The Enterprising Investor is not quite as picky, though, and the company passes all of the requirements for the investor type other than the dividend payment.  As a result, Enterprising Investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with further research, including a review of 5 Undervalued Companies for the Enterprising Investor.  From a valuation standpoint, the company does not appear to be a good value at this time.  The company’s EPSmg (normalized earnings) have only grown from $1.10 in 2009 to $1.20 for 2013, a very low level of growth that does not support the market’s implied estimate of 24.01% earnings growth.  Accordingly, the ModernGraham valuation model returns an estimate of intrinsic value that falls well below the market price.

 

  • Analog Devices Inc. (ADI) – Analog Devices is suitable for the Enterprising Investor but not the Defensive Investor.  The Defensive Investor is turned away by the company’s high PEmg and PB ratios, while the company passes all of the requirements of the Enterprising Investor.  As a result, Enterprising Investors seeking to follow the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with further research, including a review of ModernGraham’s valuation of Texas Instruments (TXN) and 5 Low PEmg Companies for the Enterprising Investor.  From a valuation standpoint, the company appears to be overvalued at the current time, after growing its EPSmg (normalized earnings) from $1.66 in 2010 to an estimated $2.25 for 2014.  This is a level of historically demonstrated growth that lags behind the market’s implied estimate of 7.21% earnings growth and leads the ModernGraham valuation model to return an estimate of intrinsic value that falls below the market price.

 

  • Cameron International Corp (CAM) – Cameron International is suitable for the Enterprising Investor but not the Defensive Investor.  The Defensive Investor is turned away by the company’s lack of dividend payments, high PEmg ratio, and the current ratio is just below the investor type’s requirement.  Since the company only fails the Enterprising Investor’s dividend payment requirement, however, that investor type should feel comfortable researching the company further, including through a review of ModernGraham’s valuation of National Oilwell Varco (NOV).  From a valuation side of things, the company appears to be slightly overvalued, having grown its EPSmg (normalized earnings) from $2.07 in 2009 to only $2.63 for 2013.  This low level of historically demonstrated growth does not support the market’s implied estimate for 7.77% earnings growth, leading the ModernGraham valuation model to return an estimate of intrinsic value that falls below the current price.

 

  • Consolidated Edison (ED) – Consolidated Edison is suitable for either the Defensive Investor or the Enterprising Investor.  The company passes all of the requirements of the Defensive Investor except for the current ratio requirement, which is fairly expected for utility companies.  The company qualifies for the Enterprising Investor by default despite having a high level of debt relative to the current assets.  As a result, value investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with further research.  From a valuation side of things, the company appears overvalued presently.  EPSmg (normalized earnings) have only grown from $3.23 in 2009 to $3.62 for 2013, and this low level of growth does not support the market’s implied estimate of 3.31% earnings growth.  The ModernGraham valuation model returns an estimate of intrinsic value that falls below the market price.

 

  • Occidental Petroleum Inc. (OXY) – Occidental Petroleum is a company that Defensive Investors and Enterprising Investors should all keep on their watch lists.  The company qualifies for the Defensive Investor having passed all of the investor type’s requirements except the current ratio.  The company also qualifies for the Enterprising Investor by default, despite having a high level of debt relative to its current assets.  As a result, value investors seeking to follow the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with further research into the company and its competitors, including a review of both ModernGraham’s valuation of Chevron Corporation (CVX) and ModernGraham’s valuation of Exxon Mobil (XOM).  From a valuation perspective, the company appears to be slightly overvalued.  It has grown its EPSmg (normalized earnings) from $5.74 in 2009 to $6.59 for 2013, but this level of growth does not support the market’s implied estimate of 3.12% earnings growth.  The ModernGraham valuation model accordingly returns an estimate of intrinsic value that falls below the market’s current price.

 

  • Pfizer Inc. (PFE) – Pfizer Inc. is suitable for the Enterprising Investor but not the Defensive Investor.  The company has not sufficiently grown its earnings over the last ten years for the Defensive Investor, and it currently trades at high PEmg and PB ratios.  However, it passes all of the requirements for the Enterprising Investor, so that investor type should keep the company on a watch list going forward.  In addition, Enterprising Investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with further research into both the company and other opportunities, including a review of ModernGraham’s valuation of Merck & Co. (MRK).  From a valuation perspective, the company appears to be overvalued after only growing its EPSmg (normalized earnings) from $1.23 in 2009 to $1.32 for 2013.  This very low level of historically demonstrated growth does not support the market’s implied estimate for earnings growth of 8.07%, leading the ModernGraham valuation model to return an estimate for intrinsic value that falls well below the market price at this time.

 

  • Texas Instruments (TXN) – Texas Instruments should be on the watch list of any Enterprising Investor, as the company passes all of the requirements of the investor type.  However, the company does not qualify for the Defensive Investor due to insufficient earnings growth over the ten year period, and high PEmg and PB ratios.  As a result, Enterprising Investors should feel comfortable proceeding with further research while Defensive Investors may wish to look into other opportunities.  From a valuation perspective, the company appears to be overvalued at the present time, due to the low earnings growth.  The company has only grown its EPSmg (normalized earnings) from $1.45 in 2009 to $1.87 for 2013, and this level of historically demonstrated growth does not support the market’s implied estimate of 7.98% earnings growth.  This leads the ModernGraham valuation model to return an estimate of intrinsic value that falls below the market price.

 

  • Tidewater Inc. (TDW) – Tidewater is suitable for the Defensive Investor, having only failed the investor type’s earnings growth requirement.  The company is also suitable for the Enterprising Investor by default, despite having failed both the debt to net current asset requirement and the earnings growth requirement.  As a result, value investors seeking to follow the ModernGraham approach based on Benjamin Graham’s methods should keep Tidewater on a watch list and feel comfortable proceeding with further research.  From a valuation perspective, the company does not perform very well, largely due to the lack of earnings growth over the last 5 years.  The company’s EPSmg (normalized earnings) have dropped from $6.18 in 2010 to an estimated $2.92 for 2014, a change that clearly does not support the market’s implied estimate for 4.20% earnings growth.  As a result, the ModernGraham valuation model finds that any value in the company must come from a source other than the earnings, though it should be noted that if the company can achieve a growth level of 3%, the value would be around $42 based on current EPSmg.

 

  • Wolverine World Wide (WWW) – Wolverine World Wide is suitable for the Enterprising Investor despite having a higher level of long-term debt relative to current assets than the investor type typically likes to see.  However, the company does not qualify for the Defensive Investor due to high PEmg and PB ratios at the current time.  As a result, Enterprising Investors should keep the company on their watch lists, conducting further research into the company’s prospects as well as other opportunities.  As for a valuation, the company has grown its EPSmg (normalized earnings) from $0.77 in 2009 to $0.99 for 2013, a low level of historically demonstrated growth that does not support the market’s implied estimate of 9.53% earnings growth.  Accordingly, the ModernGraham valuation model returns an estimate of intrinsic value that falls well below the market’s current price, indicating the company may be overvalued presently.

 

  • Zimmer Holdings Inc. (ZMH) – Zimmer Holdings Inc. is not suitable for the Defensive Investor due to its lack of a solid dividend history along with its high PEmg and PB ratios.  However, the company passes all of the requirements of the Enterprising Investor, indicating that as long as the value investor is willing to conduct very thorough analysis, this company may present lower risk than some others.  As a result, Enterprising Investors following a ModernGraham approach based on Benjamin Graham’s methods should feel comfortable exploring this company along with other opportunities, such as through a review of ModernGraham’s valuation of Johnson and Johnson (JNJ).  From a valuation perspective, the company appears to be overvalued as even though it has grown its EPSmg (normalized earnings) from $3.40 in 2009 to $4.04 in 2013, this historically demonstrated growth trails behind the market’s implied estimate for earnings growth of 7.87%.  Accordingly, the ModernGraham valuation model has estimated an intrinsic value that is below the market’s current price.

The Bad (Speculative and Undervalued or Fairly Valued)

  • No companies reviewed this week fit this criteria.

The Ugly (Speculative and Overvalued)

Mr. Market

  • Best Buy Company (BBY) – Best Buy Company presents too much risk for either Defensive Investors or Enterprising Investors at this time.  For the Defensive Investor, the company fails the requirements by having a low current ratio, insufficient earnings stability or growth over the ten year period, and a high PEmg ratio.  For the Enterprising Investor, the company does not have a high enough current ratio, and has insufficient earnings stability or growth over the last 5 years.  As a result, value investors seeking to follow the ModernGraham approach based on Benjamin Graham’s methods should explore other opportunities.  As for a valuation, the company’s EPSmg (normalized earnings) have dropped considerably over the last five years, from $2.81 in 2010 to $0.38 for 2014, leading the ModernGraham valuation model to return a figure that significantly trails the market’s implied estimate of 30.35% earnings growth from the $0.38 EPSmg figure.  Until the earnings show continued improvement, the company will continue to appear overvalued.

 

  • Marathon Oil Corp (MRO) – Marathon Oil is not suitable for either the Defensive Investor or the Enterprising Investor.  For the Defensive Investor, the turn-offs are the lack of earnings growth over the ten year period and the poor current ratio.  For the Enterprising Investor, the failings are in the high level of debt relative to the current assets and the lack of earnings growth over the last 5 years.  As a result, value investors seeking to follow the ModernGraham approach based on Benjamin Graham’s methods should explore other opportunities, such as by reviewing ModernGraham’s valuation of Chevron Corporation (CVX).  From a valuation standpoint, the company appears significantly overvalued.  The EPSmg (normalized earnings) have gone from $4.21 in 2009 to $2.41 for 2013, which is the exact opposite that Intelligent Investors want to see.  The market is implying an estimate of 2.54% earnings growth, which is clearly not supported by the recent history of the company.  As a result, the ModernGraham valuation model returns an estimate of intrinsic value that is well below the market price.

Disclaimer:  The author held a long position in Apple Inc. (AAPL) but did not hold a position in any of the other companies listed in this article at the time of publication and had no intention of changing that position within the next 72 hours.

Logos taken from either the company website or Wikipedia; this article is not affiliated with the companies in any manner.

Valuation Index

Updated as of July 20, 2017:

Here is a list of all companies currently covered by ModernGraham, as of the date listed above.  Clicking on the company name will bring you to the latest valuation of the company published by ModernGraham.

Ticker Name with Link
A Agilent Technologies Inc
AA Alcoa Corp
AAL American Airlines Group Inc
AAN Aaron’s, Inc.
AAP Advance Auto Parts, Inc.
AAPL Apple Inc.
AAXN Axon Enterprise Inc
ABBV AbbVie Inc
ABC AmerisourceBergen Corp.
ABT Abbott Laboratories
ACC American Campus Communities, Inc.
ACIW ACI Worldwide Inc
ACM Aecom
ACN Accenture Plc
ACXM Acxiom Corporation
ADBE Adobe Systems Incorporated
ADI Analog Devices, Inc.
ADM Archer Daniels Midland Company
ADP Automatic Data Processing
ADS Alliance Data Systems Corporation
ADSK Autodesk, Inc.
AEE Ameren Corp
AEO American Eagle Outfitters
AEP American Electric Power Company Inc
AES AES Corp
AET Aetna Inc
AFG American Financial Group Inc
AFL AFLAC Incorporated
AGCO AGCO Corporation
AGN Allergan plc Ordinary Shares
AHL Aspen Insurance Holdings Limited
AIG American International Group Inc
AIV Apartment Investment and Management Co
AIZ Assurant, Inc.
AJG Arthur J Gallagher & Co
AKAM Akamai Technologies, Inc.
AKRX Akorn, Inc.
ALB Albemarle Corporation
ALEX Alexander & Baldwin Inc
ALGN Align Technology, Inc.
ALK Alaska Air Group, Inc.
ALL Allstate Corp
ALLE Allegion PLC
ALXN Alexion Pharmaceuticals, Inc.
AMAT Applied Materials, Inc.
AMCX AMC Networks Inc
AMD Advanced Micro Devices, Inc.
AME AMETEK, Inc.
AMG Affiliated Managers Group, Inc.
AMGN Amgen, Inc.
AMP Ameriprise Financial, Inc.
AMT American Tower Corp
AMZN Amazon.com, Inc.
AN AutoNation, Inc.
ANF Abercrombie & Fitch Co.
ANSS ANSYS, Inc.
ANTM Anthem Inc
AON Aon plc Class A Ordinary Shares (UK)
AOS A. O. Smith Corp
APA Apache Corporation
APC Anadarko Petroleum Corporation
APD Air Products & Chemicals, Inc.
APH Amphenol Corporation
APOL Apollo Education Group Inc
ARE Alexandria Real Estate Equities Inc
ARLP Alliance Resource Partners, L.P.
ARRS ARRIS International plc
ARW Arrow Electronics, Inc.
ASH Ashland Global Holdings Inc.
ATI Allegheny Technologies Incorporated
AVB AvalonBay Communities Inc
AVGO Broadcom Ltd
AVP Avon Products, Inc.
AVY Avery Dennison Corp
AWK American Water Works Company Inc
AXP American Express Company
AYI Acuity Brands, Inc.
AZO AutoZone, Inc.
BA Boeing Co
BAC Bank of America Corp
BAX Baxter International Inc
BBBY Bed Bath & Beyond Inc.
BBT BB&T Corporation
BBY Best Buy Co Inc
BCR C R Bard Inc
BDX Becton Dickinson and Co
BEN Franklin Resources, Inc.
BF.B Brown-Forman Corporation
BGS B&G Foods, Inc.
BHI Baker Hughes A GE Co
BIIB Biogen Inc
BK Bank of New York Mellon Corp
BLK BlackRock, Inc.
BLL Ball Corporation
BMS Bemis Company, Inc.
BMY Bristol-Myers Squibb Co
BRK.B Berkshire Hathaway Inc.
BSX Boston Scientific Corporation
BWA BorgWarner Inc.
BXP Boston Properties, Inc.
C Citigroup Inc
CA CA, Inc.
CAG Conagra Brands Inc
CAH Cardinal Health Inc
CAM Cameron International Corporation
CAT Caterpillar Inc.
CB Chubb Ltd
CBG CBRE Group Inc
CBS CBS Corporation
CCE Coca-Cola European Partners plc Ordinary Shares
CCI Crown Castle International Corp. (REIT)
CCL Carnival Corp
CELG Celgene Corporation
CENX Century Aluminum Co
CERN Cerner Corporation
CEVA CEVA, Inc.
CF CF Industries Holdings, Inc.
CFG Citizens Financial Group Inc
CFNL Cardinal Financial Corporation
CFR Cullen/Frost Bankers, Inc.
CGI Celadon Group, Inc.
CGNX Cognex Corporation
CHCO City Holding Company
CHD Church & Dwight Co., Inc.
CHE Chemed Corporation
CHK Chesapeake Energy Corporation
CHRW C.H. Robinson Worldwide Inc
CHS Chico’s FAS, Inc.
CHSP Chesapeake Lodging Trust
CHTR Charter Communications, Inc.
CHUY Chuy’s Holdings Inc
CI CIGNA Corporation
CIEN Ciena Corporation
CIG Companhia Energetica de Minas Gers CEMIG
CINF Cincinnati Financial Corporation
CIR CIRCOR International, Inc.
CKH Seacor Holdings, Inc.
CL Colgate-Palmolive Company
CLD Cloud Peak Energy Inc.
CLF Cliffs Natural Resources Inc
CLGX Corelogic Inc
CLH Clean Harbors Inc
CLI Mack Cali Realty Corp
CLMS Calamos Asset Management, Inc
CLW Clearwater Paper Corp
CLX Clorox Co
CMA Comerica Incorporated
CMC Commercial Metals Company
CMCSA Comcast Corporation
CME CME Group Inc
CMG Chipotle Mexican Grill, Inc.
CMI Cummins Inc.
CMO Capstead Mortgage Corporation
CMP Compass Minerals International, Inc.
CMS CMS Energy Corporation
CMTL Comtech Telecomm. Corp.
CNC Centene Corp
CNK Cinemark Holdings, Inc.
CNMD CONMED Corporation
CNO CNO Financial Group Inc
CNP CenterPoint Energy, Inc.
CNSL Consolidated Communications Holdings Inc
CNX CONSOL Energy Inc.
COF Capital One Financial Corp.
COG Cabot Oil & Gas Corporation
COH Coach Inc
COHR Coherent, Inc.
COHU Cohu, Inc.
COL Rockwell Collins, Inc.
COLB Columbia Banking System Inc
COO Cooper Companies Inc
COP ConocoPhillips
COR CoreSite Realty Corp
CORE Core-Mark Holding Company, Inc.
COST Costco Wholesale Corporation
COTY Coty Inc
CPB Campbell Soup Company
CPF Central Pacific Financial Corp.
CPLA Capella Education Company
CPRT Copart, Inc.
CPS Cooper-Standard Holdings Inc
CPSI Computer Programs & Systems, Inc.
CPT Camden Property Trust
CRAY Cray Inc.
CRC California Resources Corp
CREE Cree, Inc.
CRI Carter’s, Inc.
CRL Charles River Laboratories Intl. Inc
CRM salesforce.com, inc.
CROX Crocs, Inc.
CRR CARBO Ceramics Inc.
CRS Carpenter Technology Corporation
CRVL CorVel Corporation
CRY Cryolife Inc
CRZO Carrizo Oil & Gas Inc
CSCO Cisco Systems, Inc.
CSGS CSG Systems International, Inc.
CSL Carlisle Companies, Inc.
CSRA CSRA Inc
CST CST Brands Inc
CSX CSX Corporation
CTAS Cintas Corporation
CTL Centurylink Inc
CTRE Caretrust REIT Inc
CTS CTS Corporation
CTSH Cognizant Technology Solutions Corp
CTXS Citrix Systems, Inc.
CUB Cubic Corporation
CUBI Customers Bancorp Inc
CUZ Cousins Properties Inc
CVBF CVB Financial Corp.
CVCO Cavco Industries, Inc.
CVG Convergys Corp
CVGW Calavo Growers, Inc.
CVLT CommVault Systems, Inc.
CVS CVS Health Corp
CVX Chevron Corporation
CWT California Water Service Group
CXO Concho Resources Inc
CXW Corecivic Inc
CY Cypress Semiconductor Corporation
CYH Community Health Systems
D Dominion Energy Inc
DAKT Daktronics, Inc.
DAL Delta Air Lines, Inc.
DAN Dana Inc
DAR Darling Ingredients Inc
DBD Diebold Nixdorf Inc
DCI Donaldson Company, Inc.
DCOM Dime Community Bancshares, Inc.
DD E I Du Pont De Nemours And Co
DDD 3D Systems Corporation
DE Deere & Company
DEI Douglas Emmett, Inc.
DFS Discover Financial Services
DG Dollar General Corp.
DGX Quest Diagnostics Inc
DHI D.R. Horton, Inc.
DHR Danaher Corporation
DIS Walt Disney Co
DISCA Discovery Communications Inc.
DISCK Discovery Communications Inc.
DLPH Delphi Automotive PLC
DLR Digital Realty Trust, Inc.
DLTR Dollar Tree, Inc.
DNB Dun & Bradstreet Corp
DNR Denbury Resources Inc.
DO Diamond Offshore Drilling Inc
DOV Dover Corp
DOW Dow Chemical Co
DPS Dr Pepper Snapple Group Inc.
DRI Darden Restaurants, Inc.
DTE DTE Energy Co
DUK Duke Energy Corp
DVA Davita Inc
DVN Devon Energy Corp
EA Electronic Arts Inc.
EBAY eBay Inc
ECL Ecolab Inc.
ED Consolidated Edison, Inc.
EFX Equifax Inc.
EIX Edison International
EL Estee Lauder Companies Inc
EMN Eastman Chemical Company
EMR Emerson Electric Co.
ENDP Endo International plc – Ordinary Shares
EOG EOG Resources Inc
EPD Enterprise Products Partners L.P.
EQIX Equinix, Inc.
EQR Equity Residential
EQT EQT Corporation
ES Eversource Energy
ESRX Express Scripts Holding Company
ESS Essex Property Trust Inc
ESV ENSCO PLC
ETFC E*TRADE Financial Corp
ETN Eaton Corporation, PLC Ordinary Shares
ETR Entergy Corporation
EVHC Envision Healthcare Corporation
EW Edwards Lifesciences Corp
EXC Exelon Corporation
EXPD Expeditors International of Washington
EXPE Expedia Inc
EXR Extra Space Storage, Inc.
F Ford Motor Company
FAST Fastenal Company
FB Facebook Inc
FBHS Fortune Brands Home & Security Inc
FCX Freeport-McMoRan Inc
FDX FedEx Corporation
FE FirstEnergy Corp.
FFIV F5 Networks, Inc.
FIS Fidelity National Information Servcs Inc
FISV Fiserv Inc
FITB Fifth Third Bancorp
FL Foot Locker, Inc.
FLIR FLIR Systems, Inc.
FLR Fluor Corporation (NEW)
FLS Flowserve Corp
FMC FMC Corp
FOSL Fossil Group Inc
FOXA Twenty-First Century Fox Inc
FRT Federal Realty Investment Trust
FSLR First Solar, Inc.
FTI TechnipFMC plc Ordinary Share
FTR Frontier Communications Corp
FTV Fortive Corp
GAS AGL Resources Inc.
GD General Dynamics Corporation
GE General Electric Company
GG Goldcorp Inc. (USA)
GGP GGP Inc
GHC Graham Holdings Co
GILD Gilead Sciences, Inc.
GIS General Mills, Inc.
GLW Corning Incorporated
GM General Motors Company
GME GameStop Corp.
GNW Genworth Financial Inc
GOOG Alphabet Inc
GOOGL Alphabet Inc
GPC Genuine Parts Company
GPN Global Payments Inc
GPS Gap Inc
GRMN Garmin Ltd.
GS Goldman Sachs Group Inc
GT Goodyear Tire & Rubber Co
GWW W W Grainger Inc
HAL Halliburton Company
HAR Harman International Industries Inc
HAS Hasbro, Inc.
HBAN Huntington Bancshares Incorporated
HBI Hanesbrands Inc.
HCA HCA Healthcare Inc
HCN Welltower Inc
HCP HCP, Inc.
HD Home Depot Inc
HES Hess Corp.
HIG Hartford Financial Services Group Inc
HOG Harley-Davidson Inc
HOLX Hologic, Inc.
HON Honeywell International Inc.
HP Helmerich & Payne, Inc.
HPE Hewlett Packard Enterprise Co
HPQ HP Inc
HRB H & R Block Inc
HRL Hormel Foods Corp
HRS Harris Corporation
HSIC Henry Schein, Inc.
HST Host Hotels and Resorts Inc
HSY Hershey Co
HUM Humana Inc
IBM International Business Machines Corp.
ICE Intercontinental Exchange Inc
IDXX IDEXX Laboratories, Inc.
IFF International Flavors & Fragrances Inc
IIVI II-VI, Inc.
ILG ILG Inc
ILMN Illumina, Inc.
IM Ingram Micro Inc.
IMO Imperial Oil Ltd (USA)
INDB Independent Bank Corp
INFY Infosys Ltd ADR
INGN Inogen Inc
INGR Ingredion Inc
INN Summit Hotel Properties Inc
INT World Fuel Services Corp
INTC Intel Corporation
INTL INTL Fcstone Inc
INTU Intuit Inc.
IOSP Innospec Inc.
IP International Paper Co
IPAR Inter Parfums, Inc.
IPCC Infinity Property and Casualty Corp.
IPG Interpublic Group of Companies Inc
IPGP IPG Photonics Corporation
IPHS Innophos Holdings, Inc.
IPI Intrepid Potash, Inc.
IPXL Impax Laboratories Inc
IR Ingersoll-Rand PLC
IRBT iRobot Corporation
IRDM Iridium Communications Inc
IRM Iron Mountain Incorporated (Delaware) REIT
ISCA International Speedway Corp
ISRG Intuitive Surgical, Inc.
ITG Investment Technology Group
ITRI Itron, Inc.
ITT ITT Inc.
ITW Illinois Tool Works Inc.
IVC Invacare Corporation
IVZ Invesco Ltd.
JACK Jack in the Box Inc.
JBHT J B Hunt Transport Services Inc
JBL Jabil Inc
JBLU JetBlue Airways Corporation
JBT John Bean Technologies Corp
JCI Johnson Controls International plc Ordinary Share
JCP J C Penney Company Inc
JEC Jacobs Engineering Group Inc
JJSF J & J Snack Foods Corp
JKHY Jack Henry & Associates, Inc.
JLL Jones Lang LaSalle Inc
JNJ Johnson & Johnson
JNPR Juniper Networks, Inc.
JOY Joy Global Inc.
JPM JPMorgan Chase & Co.
JW.A John Wiley & Sons Inc
JWN Nordstrom, Inc.
K Kellogg Company
KALU Kaiser Aluminum Corp.
KAMN Kaman Corporation
KATE Kate Spade & Co
KBH KB Home
KBR KBR, Inc.
KELYA Kelly Services, Inc.
KEX Kirby Corporation
KEY KeyCorp
KEYS Keysight Technologies Inc
KFY Korn/Ferry International
KHC Kraft Heinz Co
KIM Kimco Realty Corp
KIRK Kirkland’s, Inc.
KKR KKR & Co. L.P.
KLAC KLA-Tencor Corp
KLIC Kulicke and Soffa Industries Inc.
KLXI KLX Inc
KMB Kimberly Clark Corp
KMI Kinder Morgan Inc
KMPR Kemper Corp
KMT Kennametal Inc.
KMX CarMax, Inc
KN Knowles Corp
KND Kindred Healthcare, Inc.
KNX Knight Transportation
KO The Coca-Cola Co
KOP Koppers Holdings Inc.
KOPN Kopin Corporation
KORS Michael Kors Holdings Ltd
KR Kroger Co
KRA Kraton Corp
KRC Kilroy Realty Corp
KRG Kite Realty Group Trust
KS KapStone Paper and Packaging Corp.
KSS Kohl’s Corporation
KSU Kansas City Southern
KWR Quaker Chemical Corp
L Loews Corporation
LABL Multi-Color Corporation
LAD Lithia Motors Inc
LAMR Lamar Advertising Company
LANC Lancaster Colony Corp.
LB L Brands Inc
LCI Lannett Company, Inc.
LDL Lydall, Inc.
LDOS Leidos Holdings, Inc.
LDR Landauer Inc
LECO Lincoln Electric Holdings, Inc.
LEG Leggett & Platt, Inc.
LEN Lennar Corporation
LFUS Littelfuse, Inc.
LGIH LGI Homes Inc
LGND Ligand Pharmaceuticals Inc.
LH Laboratory Corp. of America Holdings
LHCG LHC Group, Inc.
LHO LaSalle Hotel Properties
LII Lennox International Inc.
LITE Lumentum Holdings Inc
LKQ LKQ Corporation
LL Lumber Liquidators Holdings Inc
LLL L3 Technologies Inc
LLTC Linear Technology Corporation
LLY Eli Lilly and Co
LM Legg Mason Inc
LMNX Luminex Corporation
LMOS Lumos Networks Corp
LMT Lockheed Martin Corporation
LNC Lincoln National Corporation
LNN Lindsay Corporation
LNT Alliant Energy Corporation
LOCO El Pollo LoCo Holdings Inc
LOGM LogMeIn Inc
LOW Lowe’s Companies, Inc.
LPNT LifePoint Health Inc
LPSN LivePerson, Inc.
LPT Liberty Property Trust
LPX Louisiana-Pacific Corporation
LQDT Liquidity Services, Inc.
LRCX Lam Research Corporation
LSTR Landstar System, Inc.
LTC LTC Properties Inc
LTXB LegacyTexas Financial Group Inc
LUK Leucadia National Corp.
LUV Southwest Airlines Co
LVLT Level 3 Communications, Inc.
LXP Lexington Realty Trust
LYB LyondellBasell Industries NV
LYV Live Nation Entertainment, Inc.
M Macy’s Inc
MA Mastercard Inc
MAA Mid-America Apartment Communities Inc
MAC Macerich Co
MAIN Main Street Capital Corporation
MAR Marriott International Inc
MAS Masco Corp
MAT Mattel, Inc.
MCD McDonald’s Corporation
MCHP Microchip Technology Inc.
MCK McKesson Corporation
MCO Moody’s Corporation
MDLZ Mondelez International Inc
MDT Medtronic plc. Ordinary Shares
MET Metlife Inc
MHK Mohawk Industries, Inc.
MKC McCormick & Company, Incorporated
MLM Martin Marietta Materials, Inc.
MMC Marsh & McLennan Companies, Inc.
MMM 3M Co
MMP Magellan Midstream Partners, L.P.
MNK Mallinckrodt PLC
MNST Monster Beverage Corporation
MO Altria Group Inc
MON Monsanto Company
MOS Mosaic Co
MPC Marathon Petroleum Corp
MRK Merck & Co., Inc.
MRO Marathon Oil Corporation
MS Morgan Stanley
MSFT Microsoft Corporation
MSI Motorola Solutions Inc
MTB M&T Bank Corporation
MTD Mettler-Toledo International Inc.
MTSC MTS Systems Corporation
MU Micron Technology, Inc.
MUR Murphy Oil Corporation
MYL Mylan N.V.
NAVI Navient Corp
NBL Noble Energy, Inc.
NBR Nabors Industries Ltd.
NDAQ Nasdaq Inc
NE Noble Corporation Ordinary Shares (UK)
NEE NextEra Energy Inc
NEM Newmont Mining Corp
NFLX Netflix, Inc.
NFX Newfield Exploration Co.
NI NiSource Inc.
NKE Nike Inc
NLSN Nielsen N.V. Ordinary Shares
NNN National Retail Properties, Inc.
NOC Northrop Grumman Corporation
NOV National-Oilwell Varco, Inc.
NPK National Presto Industries Inc.
NRP Natural Resource Partners LP
NSC Norfolk Southern Corp.
NTAP NetApp Inc.
NTRS Northern Trust Corporation
NUE Nucor Corporation
NVDA NVIDIA Corporation
NWL Newell Brands Inc
NWS News Corp
NWSA News Corp
O Realty Income Corp
OI Owens-Illinois Inc
OKE ONEOK, Inc.
OLN Olin Corporation
OMC Omnicom Group Inc.
ORCL Oracle Corporation
ORLY O’Reilly Automotive Inc
OXY Occidental Petroleum Corporation
PAYX Paychex, Inc.
PBCT People’s United Financial, Inc.
PBI Pitney Bowes Inc.
PCAR PACCAR Inc
PCG PG&E Corporation
PCLN Priceline Group Inc
PDCO Patterson Companies, Inc.
PEG Public Service Enterprise Group Inc.
PEP PepsiCo, Inc.
PFE Pfizer Inc.
PFG Principal Financial Group Inc
PG Procter & Gamble Co
PGR Progressive Corp
PH Parker-Hannifin Corp
PHM PulteGroup, Inc.
PKI PerkinElmer, Inc.
PLD Prologis Inc
PM Philip Morris International Inc.
PMD Psychemedics Corp.
PNC PNC Financial Services Group Inc
PNR Pentair plc. Ordinary Share
PNW Pinnacle West Capital Corporation
PPG PPG Industries, Inc.
PPL PPL Corp
PRGO Perrigo Company plc Ordinary Shares
PRU Prudential Financial Inc
PSA Public Storage
PSX Phillips 66
PVH PVH Corp
PWR Quanta Services Inc
PX Praxair, Inc.
PXD Pioneer Natural Resources
PYPL Paypal Holdings Inc
QCOM QUALCOMM, Inc.
QEP QEP Resources Inc
QRVO Qorvo Inc
R Ryder System, Inc.
RAI Reynolds American, Inc.
RAVN Raven Industries, Inc.
RBC Regal Beloit Corp
RDC Rowan Companies PLC
REGN Regeneron Pharmaceuticals Inc
RF Regions Financial Corp
RHI Robert Half International Inc.
RHT Red Hat Inc
RIG Transocean LTD
RL Ralph Lauren Corp
ROK Rockwell Automation
ROP Roper Technologies Inc
ROST Ross Stores, Inc.
RRC Range Resources Corp.
RSG Republic Services, Inc.
RTN Raytheon Company
SAIA Saia Inc
SAIC Science Applications International Corp
SAM Boston Beer Company Inc
SANM Sanmina Corp
SBNY Signature Bank
SBRA Sabra Health Care REIT Inc
SBSI Southside Bancshares, Inc.
SBUX Starbucks Corporation
SCAI Surgical Care Affiliates Inc
SCG SCANA Corporation
SCHL Scholastic Corp
SCHW Charles Schwab Corp
SCI Service Corporation International
SCLN SciClone Pharmaceuticals, Inc.
SCSC ScanSource, Inc.
SCSS Select Comfort Corp.
SCVL Shoe Carnival, Inc.
SE Spectra Energy Corp.
SEE Sealed Air Corp
SEIC SEI Investments Company
SEM Select Medical Holdings Corporation
SENEA Seneca Foods Corp
SF Stifel Financial Corp
SFBS ServisFirst Bancshares, Inc.
SFNC Simmons First National Corporation
SGMS Scientific Games Corp
SHLM A Schulman Inc
SHOO Steven Madden, Ltd.
SHW Sherwin-Williams Co
SIG Signet Jewelers Ltd.
SIGI Selective Insurance Group
SIVB SVB Financial Group
SJI South Jersey Industries Inc
SJM J M Smucker Co
SKT Tanger Factory Outlet Centers Inc.
SKYW SkyWest, Inc.
SLAB Silicon Laboratories
SLB Schlumberger Limited.
SLCA U.S. Silica Holdings Inc
SLG SL Green Realty Corp
SLGN Silgan Holdings Inc.
SLM SLM Corp
SLW SWISS LIFE HLDG SF 5,10
SM SM Energy Co
SMCI Super Micro Computer, Inc.
SMG Scotts Miracle-Gro Co
SMP Standard Motor Products, Inc.
SMRT Stein Mart, Inc.
SMTC Semtech Corporation
SNA Snap-on Incorporated
SNCR Synchronoss Technologies, Inc.
SNH Senior Housing Properties Trust
SNI Scripps Networks Interactive, Inc.
SNPS Synopsys, Inc.
SNV Synovus Financial Corp.
SO Southern Co
SON Sonoco Products Co
SONC Sonic Corporation
SPG Simon Property Group Inc
SPGI S&P Global Inc
SPH Suburban Propane Partners LP
SPLS Staples, Inc.
SPN Superior Energy Services, Inc.
SPOK Spok Holdings, Inc.
SPPI Spectrum Pharmaceuticals, Inc.
SPSC SPS Commerce, Inc.
SPTN SpartanNash Co
SPXC SPX Corp
SR Spire Inc
SRCL Stericycle Inc
SRDX SurModics, Inc.
SRE Sempra Energy
SSD Simpson Manufacturing Co, Inc.
SSI Stage Stores Inc
SSP E. W. Scripps Co
SSTK Shutterstock Inc
STBA S & T Bancorp Inc
STC Stewart Information Services Corp
STE Steris PLC
STI SunTrust Banks, Inc.
STL Sterling Bancorp
STLD Steel Dynamics, Inc.
STMP Stamps.com Inc.
STRA Strayer Education Inc
STT State Street Corp
STWD Starwood Property Trust, Inc.
STX Seagate Technology PLC
STZ Constellation Brands, Inc.
SUP Superior Industries International Inc
SUPN Supernus Pharmaceuticals Inc
SVU SUPERVALU INC.
SWK Stanley Black & Decker, Inc.
SWKS Skyworks Solutions Inc
SWM Schweitzer-Mauduit International, Inc.
SWN Southwestern Energy Company
SXC SunCoke Energy Inc
SXI Standex Int’l Corp.
SXT Sensient Technologies Corporation
SYF Synchrony Financial
SYK Stryker Corporation
SYKE Sykes Enterprises, Incorporated
SYMC Symantec Corporation
SYY SYSCO Corporation
T AT&T Inc.
TAP Molson Coors Brewing Co
TBI Trueblue Inc
TCBI Texas Capital Bancshares Inc
TCF TCF Financial Corporation
TCO Taubman Centers, Inc.
TDC Teradata Corporation
TDG TransDigm Group Incorporated
TDS Telephone & Data Systems, Inc.
TDW Tidewater Inc.
TDY Teledyne Technologies Incorporated
TECD Tech Data Corp
TECH BIO-TECHNE Corp
TEL TE Connectivity Ltd
TER Teradyne, Inc.
TESO Tesco Corporation (USA)
TEX Terex Corporation
TFX Teleflex Incorporated
TGNA Tegna Inc
TGT Target Corporation
THC Tenet Healthcare Corp
TIF Tiffany & Co.
TJX TJX Companies Inc
TMK Torchmark Corporation
TMO Thermo Fisher Scientific Inc.
TRIP Tripadvisor Inc
TROW T. Rowe Price Group Inc
TRV Travelers Companies Inc
TSCO Tractor Supply Company
TSE:ARE Aecon Group Inc
TSE:CEU CES Energy Solutions Corp
TSE:CFP Canfor Corporation
TSE:CG Centerra Gold Inc.
TSE:CGX Cineplex Inc
TSE:CHE.UN Chemtrade Logistics Income Fund
TSE:CIX CI Financial Corp
TSE:CJR.B Corus Entertainment Inc.
TSE:CLS Celestica Inc
TSE:CM Canadian Imperial Bank of Commerce
TSE:CNQ Canadian Natural Resources Limited
TSE:CNR Canadian National Railway Company
TSE:CP Canadian Pacific Railway Limited
TSE:CPG Crescent Point Energy Corp
TSE:CPX Capital Power Corp
TSE:CR Crew Energy Inc
TSE:CRR.UN Crombie Real Estate Investment Trust
TSE:CSH.UN Chartwell Retirement Residences
TSE:CSU Constellation Software Inc.
TSE:CTC.A Canadian Tire Corporation Limited
TSE:CU Canadian Utilities Limited
TSE:CUF.UN Cominar REIT
TSE:CVE Cenovus Energy Inc
TSE:CWB Canadian Western Bank
TSE:DDC Dominion Diamond Corp
TSE:D.UN Dream Office Real Estate Investment Trst
TSE:IGM IGM Financial Inc.
TSE:IMG IAMGOLD Corp
TSE:INE Innergex Renewable Energy Inc
TSE:IPL Inter Pipeline Ltd
TSE:ITP Intertape Polymer Group
TSE:IVN Ivanhoe Mines Ltd
TSE:JE Just Energy Group Inc
TSE:KDX Klondex Mines Ltd
TSE:KEL Kelt Exploration Ltd
TSE:KL KIRKLAND LAKE GOLD LTD
TSE:KXS Kinaxis Inc
TSE:LIF LABRADOR IRON ORE ROYALTY CORPORATION
TSE:LNR Linamar Corporation
TSE:LUC Lucara Diamond Corp
TSE:LUN Lundin Mining Corporation
TSE:SAP Saputo Inc.
TSE:SCL Shawcor Ltd
TSE:SES Secure Energy Services Inc
TSE:SGY Surge Energy Inc
TSE:SJ Stella-Jones Inc
TSE:SJR.B Shaw Communications Inc
TSE:SLF Sun Life Financial Inc
TSE:SMF Semafo Inc.
TSE:SNC Snc-Lavalin Group Inc
TSE:SPB Superior Plus Corp.
TSE:SPE Spartan Energy Corp
TSE:SRU.UN Smart REIT
TSE:SSL Sandstorm Gold Ltd
TSE:SSO Silver Standard Resources Inc.
TSE:STN Stantec Inc.
TSE:SU Suncor Energy Inc.
TSE:SW Sierra Wireless, Inc.
TSE:TA TransAlta Corporation
TSE:TCL.A Transcontinental Inc.
TSE:TCN Tricon Capital Group Inc
TSE:TD Toronto-Dominion Bank
TSE:TECK.B Teck Resources Ltd
TSE:tFII TFI International Inc
TSN Tyson Foods, Inc.
TSO Tesoro Corporation
TSS Total System Services, Inc.
TWX Time Warner Inc
TXN Texas Instruments Incorporated
TXT Textron Inc.
UA Under Armour Inc
UAA Under Armour Inc
UDR UDR, Inc.
UHS Universal Health Services, Inc.
ULTA Ulta Beauty Inc
UNH UnitedHealth Group Inc
UNIT Uniti Group Inc
UNM Unum Group
UNP Union Pacific Corporation
UPS United Parcel Service, Inc.
URBN Urban Outfitters, Inc.
URI United Rentals, Inc.
USB U.S. Bancorp
UTX United Technologies Corporation
V Visa Inc
VAR Varian Medical Systems, Inc.
VFC VF Corp
VIAB Viacom, Inc.
VLO Valero Energy Corporation
VMC Vulcan Materials Company
VNO Vornado Realty Trust
VRSK Verisk Analytics, Inc.
VRSN Verisign, Inc.
VRTX Vertex Pharmaceuticals Incorporated
VTR Ventas, Inc.
VZ Verizon Communications Inc.
WAT Waters Corporation
WBA Walgreens Boots Alliance Inc
WDC Western Digital Corp
WEC WEC Energy Group Inc
WFC Wells Fargo & Co
WFM Whole Foods Market, Inc.
WHR Whirlpool Corporation
WIN Windstream Holdings, Inc.
WM Waste Management, Inc.
WMB Williams Companies Inc
WMT Wal-Mart Stores Inc
WNR Western Refining, Inc.
WPX WPX Energy Inc
WR Westar Energy Inc
WRK WestRock Co
WU The Western Union Company
WWW Wolverine World Wide, Inc.
WY Weyerhaeuser Co
WYN Wyndham Worldwide Corporation
WYNN Wynn Resorts, Limited
X United States Steel Corporation
XEL Xcel Energy Inc
XL XL Group Ltd.
XLNX Xilinx, Inc.
XOM Exxon Mobil Corporation
XRAY DENTSPLY SIRONA Inc
XRX Xerox Corp
XYL Xylem Inc
YUM Yum! Brands, Inc.
ZBH Zimmer Biomet Holdings Inc
ZION Zions Bancorp
ZTS Zoetis Inc

Valuation: Altera Corporation. (ALTR)

Company Review: Altera Corporation. (ALTR)

Company Profile: Altera Corporation. (obtained via Google Finance)

Altera Corporation designs, manufactures and markets programmable logic devices (PLDs), HardCopy structured application-specific integrated circuit (ASIC) devices, pre-defined design building blocks known as intellectual property cores (IP cores) and associated development tools. The Company’s PLDs, which consist of field-programmable gate arrays (FPGAs) and complex programmable logic devices (CPLDs) are semiconductor integrated circuits, or chips, that are manufactured as standard chips that its customers program to perform desired logic functions within their electronic systems. Its HardCopy enable its customers to transition from a high-density FPGA to a non-programmable implementation of their designs for volume production. The Company’s customers can license IP cores from it for implementation of standard functions in their PLD designs. Customers develop, compile, and verify their PLD designs, and then program their designs into the Company’s PLDs using its development software, which operates on personal computers and engineering workstations. Altera also supplies metal oxide semiconductor (CMOS) PLDs.

 Business and Management Review1) Is the business simple and understandable? 

Altera’s business strategy is easy to understand as they create software tools intellectual property, and customer support to provide high-value programmable solutions to customers worldwide.

2) Does the business have a consistent operating history? 

The company has a consistent operating history as it had grown 69% in its operating Net Income from 2001 to 2006. ALTR management effectiveness and profitability ratios show a performance that out beat the industry.

 3) Does the system have favorable long term prospects? 

This company has favorable long term opportunities as customers in the communications, computer and storage, industrial, and consumer markets use the company’s software to configure and program these chips for a wide variety of end uses.

 4) Is management rationale? Management seems to be following a rationale behavior.. 5) Is management candid with its shareholders? 

The company shows strong investor relations as they lay out all relevant information in their website.

 6) Does management resist the institutional imperative? We do not believe management is following institutional imperativeness. Financial and Value ReviewDefensive1) Size of firm 

The company has a Market Cap higher than $2 billion. “Pass”.

 2) Strong financial condition 

Altera has a current ratio of 3.1.  “Pass”.

 3) Earnings stability 

This company does not posses a positive Net Income for the past 10 years. “Fail”.

 4) Dividend record 

ALTR has not paid dividends for the last 10 years. “Fail”.

 5) Earnings growth 

Its EPS has grown at least 1/3 for the prior 10 years. “Pass”.

 6) Price to earnings analysis 

The company’s PE ratio is higher than 20. “Fail”.

 7) Price to book analysis 

The company has a P/B higher than 2.5 and P/B*P/E higher than 50. “Fail”/”Fail”.

 Conclusion 

We would not recommend Altera to defensive investors since it only pass 3 of the 8 tests.

 Enterprising:
1) Strong financial condition
 

This company’s current ratio is 3.27 and possesses debt to NCA lower than 1.1. “Pass”/”Pass”.

 2) Earnings stability 

Altera Corporation has a positive net income for the past five years. “Pass”.

 3) Dividend record 

Nowadays ALTR does not pay dividends. “Fail”.

 4) Earnings growth 

Its earnings are greater than five years ago. “Pass”.

 5) Price 

Altera’s stock price is higher than 150% of net tangible assets. “Fail”

Conclusion: 

We will not suggest the acquisition of this company by enterprising investors since it pass 4 of the 6 require tests.

 Valuation: 

In accordance to our Equity valuation model, Altera Corporation is worth $18.92.

 Opinion: 

Since the company is currently trading at $18.90 they seem trading at par. However, we do not find them to be good acquisitions for enterprising or defensive investor.

None of our staff members at Modern Graham hold a position in Altera Corporation at the time of publication.  Also, please read our disclaimer and Our Methods.

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