Microsoft Corporation Valuation – February 2017 $MSFT

Benjamin 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 or by reviewing the 10 Stocks for Using A Benjamin Graham Value Investing Strategy – January 2017.  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 stock analysis showing a specific look at how Microsoft Corporation (MSFT) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Microsoft Corporation is a technology company. The Company develops, licenses, and supports a range of software products, services and devices. The Company’s segments include Productivity and Business Processes, Intelligent Cloud and More Personal Computing. The Company’s products include operating systems; cross-device productivity applications; server applications; business solution applications; desktop and server management tools; software development tools; video games, and training and certification of computer system integrators and developers. It also designs, manufactures, and sells devices, including personal computers (PCs), tablets, gaming and entertainment consoles, phones, other intelligent devices, and related accessories, that integrate with its cloud-based offerings. It offers an array of services, including cloud-based solutions that provide customers with software, services, platforms, and content, and it provides solution support and consulting services.

MSFT Chart

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Downloadable PDF version of this valuation:

ModernGraham Valuation of MSFT – February 2017

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 $480,334,843,658 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 2.05 Pass
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 9.12% Fail
6. Moderate PEmg Ratio PEmg < 20 28.49 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 7.19 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 2.05 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 0.80 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 Fail

Stage 2: Determination of Intrinsic Value

EPSmg $2.22
MG Growth Estimate -0.65%
MG Value $15.97
Opinion Overvalued
MG Grade C+
MG Value based on 3% Growth $32.17
MG Value based on 0% Growth $18.86
Market Implied Growth Rate 10.00%
Current Price $63.21
% of Intrinsic Value 395.81%

Microsoft Corporation 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 high PEmg and PB ratios. The Enterprising Investor is only concerned with the lack of earnings growth over the last five years. 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 seeing its EPSmg (normalized earnings) decline from $2.32 in 2013 to an estimated $2.22 for 2017. This level of demonstrated earnings growth does not support the market’s implied estimate of 10% 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 Microsoft Corporation revealed the company was trading above its Graham Number of $22.47. The company pays a dividend of $1.47 per share, for a yield of 2.3%, putting it among the best dividend paying stocks today. Its PEmg (price over earnings per share – ModernGraham) was 28.49, which was below the industry average of 38.63, 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 $-1.39.

Microsoft Corporation receives an average overall rating in the ModernGraham grading system, scoring a C+.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) -$1.39
Graham Number $22.47
PEmg 28.49
Current Ratio 2.05
PB Ratio 7.19
Current Dividend $1.47
Dividend Yield 2.33%
Number of Consecutive Years of Dividend Growth 15

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 12/1/2016
Total Current Assets $144,949,000,000
Total Current Liabilities $70,787,000,000
Long-Term Debt $59,306,000,000
Total Assets $224,610,000,000
Intangible Assets $45,525,000,000
Total Liabilities $155,801,000,000
Shares Outstanding (Diluted Average) 7,830,000,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $2.52
Jun2016 $2.10
Jun2015 $1.48
Jun2014 $2.63
Jun2013 $2.58
Jun2012 $2.00
Jun2011 $2.69
Jun2010 $2.10
Jun2009 $1.62
Jun2008 $1.87
Jun2007 $1.42
Jun2006 $1.20
Jun2005 $1.12
Jun2004 $0.75
Jun2003 $0.69
Jun2002 $0.48
Jun2001 $0.66
Jun2000 $0.85
Jun1999 $0.71
Jun1998 $0.42
Jun1997 $0.33

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $2.22
Jun2016 $2.10
Jun2015 $2.16
Jun2014 $2.46
Jun2013 $2.32
Jun2012 $2.14
Jun2011 $2.12
Jun2010 $1.78
Jun2009 $1.56
Jun2008 $1.44
Jun2007 $1.16
Jun2006 $0.97
Jun2005 $0.82
Jun2004 $0.67
Jun2003 $0.65
Jun2002 $0.63
Jun2001 $0.67

Recommended Reading:

Other ModernGraham posts about the company

Microsoft Corporation Valuation – August 2016 $MSFT
Microsoft Corp Valuation – February 2016 $MSFT
Microsoft Corporation Valuation – November 2015 Update $MSFT
Microsoft Corporation Analysis – August 2015 Update $MSFT
47 Companies in the Spotlight This Week – 5/16/15

Other ModernGraham posts about related companies

Cisco Systems Inc Valuation – January 2017 $CSCO
Autodesk Inc Valuation – December 2016 $ADSK
Symantec Corporation Valuation – August 2016 $SYMC
Adobe Systems Inc Valuation – August 2016 $ADBE
Microsoft Corporation Valuation – August 2016 $MSFT
Cisco Systems Inc Valuation – August 2016 $CSCO
Oracle Corporation Valuation – July 2016 $ORCL
CA Inc Valuation – July 2016 $CA
Red Hat Inc Valuation – June 2016 $RHT
Yahoo! Inc Valuation – June 2016 $YHOO

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.

Cisco Systems Inc Valuation – January 2017 $CSCO

Benjamin 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 or by reviewing the 10 Stocks for Using A Benjamin Graham Value Investing Strategy – January 2016.  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 stock analysis showing a specific look at how Cisco Systems Inc (CSCO) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Cisco Systems, Inc. designs and sells a range of products, provides services and delivers integrated solutions to develop and connect networks around the world. The Company operates through three geographic segments: Americas; Europe, the Middle East and Africa (EMEA), and Asia Pacific, Japan and China (APJC). The Company groups its products and technologies into various categories, such as Switching; Next-Generation Network (NGN) Routing; Collaboration; Data Center; Wireless; Service Provider Video; Security, and Other Products. In addition to its product offerings, the Company provides a range of service offerings, including technical support services and advanced services. The Company delivers its technology and services to its customers as solutions for their priorities, including cloud, video, mobility, security, collaboration and analytics. The Company serves customers, including businesses of all sizes, public institutions, governments and service providers.

CSCO Chart

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Downloadable PDF version of this valuation:

ModernGraham Valuation of CSCO – January 2017

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 $152,248,014,127 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 3.58 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 66.94% Pass
6. Moderate PEmg Ratio PEmg < 20 15.17 Pass
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 2.43 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 3.58 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 0.51 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 $2.00
MG Growth Estimate 5.04%
MG Value $37.19
Opinion Fairly Valued
MG Grade B
MG Value based on 3% Growth $29.03
MG Value based on 0% Growth $17.02
Market Implied Growth Rate 3.34%
Current Price $30.38
% of Intrinsic Value 81.69%

Cisco Systems, Inc. qualifies for both the Defensive Investor and the Enterprising Investor. The Defensive Investor is only initially concerned with the poor dividend history. 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 Fairly Valued after growing its EPSmg (normalized earnings) from $1.5 in 2013 to an estimated $2 for 2017. This level of demonstrated earnings growth supports the market’s implied estimate of 3.34% 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 within a margin of safety relative to the price.

At the time of valuation, further research into Cisco Systems, Inc. revealed the company was trading above its Graham Number of $25.55. The company pays a dividend of $0.99 per share, for a yield of 3.3%, putting it among the best dividend paying stocks today. Its PEmg (price over earnings per share – ModernGraham) was 15.17, which was below the industry average of 38.63, 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 $4.

Cisco Systems, Inc. performs fairly well in the ModernGraham grading system, scoring a B.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) $4.00
Graham Number $25.55
PEmg 15.17
Current Ratio 3.58
PB Ratio 2.43
Current Dividend $0.99
Dividend Yield 3.26%
Number of Consecutive Years of Dividend Growth 7

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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 10/1/2016
Total Current Assets $83,141,000,000
Total Current Liabilities $23,217,000,000
Long-Term Debt $30,634,000,000
Total Assets $126,287,000,000
Intangible Assets $29,120,000,000
Total Liabilities $62,881,000,000
Shares Outstanding (Diluted Average) 5,066,000,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $2.30
Jul2016 $2.11
Jul2015 $1.75
Jul2014 $1.49
Jul2013 $1.86
Jul2012 $1.49
Jul2011 $1.17
Jul2010 $1.33
Jul2009 $1.05
Jul2008 $1.31
Jul2007 $1.17
Jul2006 $0.89
Jul2005 $0.87
Jul2004 $0.62
Jul2003 $0.50
Jul2002 $0.25
Jul2001 -$0.14
Jul2000 $0.36
Jul1999 $0.29
Jul1998 $0.20
Jul1997 $0.17

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $2.00
Jul2016 $1.82
Jul2015 $1.63
Jul2014 $1.54
Jul2013 $1.50
Jul2012 $1.30
Jul2011 $1.21
Jul2010 $1.20
Jul2009 $1.11
Jul2008 $1.08
Jul2007 $0.92
Jul2006 $0.74
Jul2005 $0.58
Jul2004 $0.40
Jul2003 $0.27
Jul2002 $0.17
Jul2001 $0.15

Recommended Reading:

Other ModernGraham posts about the company

5 Undervalued Companies for the Defensive Investor Near 52 Week Lows – February 2016
26 Best Stocks For Value Investors This Week – 2/6/16
Cisco Systems Inc Valuation – February 2016 $CSCO
10 Undervalued Companies for the Defensive Dividend Stock Investor – February 2016
10 Undervalued Companies for the Defensive Dividend Stock Investor – December 2015

Other ModernGraham posts about related companies

Symantec Corporation Valuation – August 2016 $SYMC
Adobe Systems Inc Valuation – August 2016 $ADBE
Microsoft Corporation Valuation – August 2016 $MSFT
Cisco Systems Inc Valuation – August 2016 $CSCO
Oracle Corporation Valuation – July 2016 $ORCL
CA Inc Valuation – July 2016 $CA
Red Hat Inc Valuation – June 2016 $RHT
Yahoo! Inc Valuation – June 2016 $YHOO
Alphabet Inc Valuation – June 2016 $GOOGL
Ansys Inc Valuation – June 2016 $ANSS

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.

Autodesk Inc Valuation – December 2016 $ADSK

Benjamin 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 or by reviewing the 10 Stocks for Using A Benjamin Graham Value Investing Strategy – December 2016.  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 stock analysis showing a specific look at how Autodesk Inc (ADSK) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Autodesk, Inc. (Autodesk) is a design software and services company, offering customers productive business solutions through technology products and services. The Company serves customers in the architecture, engineering and construction; manufacturing, and digital media, consumer and entertainment industries. It operates in four segments: Architecture, Engineering and Construction (AEC), Platform Solutions and Emerging Business (PSEB), Manufacturing (MFG), and Media and Entertainment (M&E). The PSEB, AEC and MFG segments offer a range of services, including consulting, support and training. The M&E segment offers software products to professionals, post-production facilities and broadcasters for a range of applications. Its software products enable its customers to experience their ideas before they are real by allowing them to imagine, design and create their ideas and to visualize, simulate and analyze real-world performance in the design process by creating digital prototypes.

ADSK Chart

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[level-free]
To read the details of this valuation, you must be logged in as a premium member. If you are not a premium member, please consider becoming one.

Premium members can view a full ModernGraham valuation of the company and have access to download a PDF version of the valuation for easy reference. Recent valuations of the components of the Dow Jones Industrial Average are available for free members, including this one of Microsoft Corporation.  In addition, here is a post detailing what can be found within each individual company’s valuation.

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Downloadable PDF version of this valuation:

ModernGraham Valuation of ADSK – December 2016

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 $17,382,638,403 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 1.46 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 -232.54% Fail
6. Moderate PEmg Ratio PEmg < 20 -89.55 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 16.10 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 1.46 Fail
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 2.03 Fail
3. Earnings Stability Positive EPS for 5 years prior Fail
4. Dividend Record Currently Pays Dividend Fail
5. Earnings Growth EPSmg greater than 5 years ago Fail

Stage 2: Determination of Intrinsic Value

EPSmg -$0.86
MG Growth Estimate -4.25%
MG Value $0.00
Opinion Overvalued
MG Grade D
MG Value based on 3% Growth -$12.44
MG Value based on 0% Growth -$7.29
Market Implied Growth Rate -49.02%
Current Price $76.83
% of Intrinsic Value N/A

Autodesk, 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, and the high PEmg and PB ratios. 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, and 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 seeing its EPSmg (normalized earnings) decline from $0.95 in 2013 to an estimated $-0.86 for 2017. 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 Autodesk, Inc. revealed the company was trading above its Graham Number of $0. The company does not pay a dividend. Its PEmg (price over earnings per share – ModernGraham) was -89.55, which was below the industry average of 38.63, 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 $-6.46.

Autodesk, 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) -$6.46
Graham Number $0.00
PEmg -89.55
Current Ratio 1.46
PB Ratio 16.10
Current Dividend $0.00
Dividend Yield 0.00%
Number of Consecutive Years of Dividend Growth 0

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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 10/1/2016
Total Current Assets $2,332,100,000
Total Current Liabilities $1,597,600,000
Long-Term Debt $1,489,900,000
Total Assets $4,829,200,000
Intangible Assets $1,725,800,000
Total Liabilities $3,768,600,000
Shares Outstanding (Diluted Average) 222,300,000

Earnings Per Share History

Next Fiscal Year Estimate -$2.23
Jan2016 -$1.46
Jan2015 $0.35
Jan2014 $1.00
Jan2013 $1.07
Jan2012 $1.22
Jan2011 $0.90
Jan2010 $0.25
Jan2009 $0.80
Jan2008 $1.47
Jan2007 $1.19
Jan2006 $1.35
Jan2005 $0.90
Jan2004 $0.52
Jan2003 $0.14
Jan2002 $0.40
Jan2001 $0.40
Jan2000 $0.04
Jan1999 $0.41
Jan1998 $0.23
Jan1997 $0.22

Earnings Per Share – ModernGraham History

Next Fiscal Year Estimate -$0.86
Jan2016 $0.03
Jan2015 $0.82
Jan2014 $1.00
Jan2013 $0.95
Jan2012 $0.90
Jan2011 $0.80
Jan2010 $0.84
Jan2009 $1.14
Jan2008 $1.23
Jan2007 $1.02
Jan2006 $0.84
Jan2005 $0.55
Jan2004 $0.35
Jan2003 $0.27
Jan2002 $0.32
Jan2001 $0.27

Recommended Reading:

Other ModernGraham posts about the company

5 Speculative and Overvalued Companies to Avoid – August 2015
Autodesk Inc. Analysis – August 2015 Update $ADSK
47 Companies in the Spotlight This Week – 5/16/15
Autodesk Inc. Quarterly Valuation – May 2015 $ADSK
40 Companies in the Spotlight This Week – 2/21/15

Other ModernGraham posts about related companies

Adobe Systems Inc Valuation – August 2016 $ADBE
Microsoft Corporation Valuation – August 2016 $MSFT
Cisco Systems Inc Valuation – August 2016 $CSCO
Oracle Corporation Valuation – July 2016 $ORCL
CA Inc Valuation – July 2016 $CA
Red Hat Inc Valuation – June 2016 $RHT
Yahoo! Inc Valuation – June 2016 $YHOO
Alphabet Inc Valuation – June 2016 $GOOGL
Ansys Inc Valuation – June 2016 $ANSS
Citrix Systems Inc Valuation – May 2016 $CTXS

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.

Symantec Corporation Valuation – August 2016 $SYMC

Benjamin 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 or by reviewing the 10 Stocks for Using A Benjamin Graham Value Investing Strategy – August 2016.  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 stock analysis showing a specific look at how Symantec Corporation (SYMC) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Symantec Corporation provides security and information management solutions. The Company operates its business on a global civilian cyber intelligence threat network and tracks various threats across the Internet from mobile devices, endpoints, and servers across the world. It is developing solutions for cloud, threat protection, information protection and cyber security services. It operates through two segments: Consumer Security and Enterprise Security. Its Consumer Security segment allows customers to be productive and protected at home and at work. Its Norton-branded services provide multi-layer security and identity protection on desktop and mobile operating systems, to defend against online threats to individuals, families and small businesses. Its Enterprise Security segment protects organizations so they can securely conduct business, and its products include threat protection products, information protection products, cyber security services and Website security offerings.

SYMC Chart

SYMC data by YCharts

[level-free]
To read the details of this valuation, you must be logged in as a premium member. If you are not a premium member, please consider becoming one.

Premium members can view a full ModernGraham valuation of the company and have access to download a PDF version of the valuation for easy reference. Recent valuations of the components of the Dow Jones Industrial Average are available for free members, including this one of Microsoft Corporation.  In addition, here is a post detailing what can be found within each individual company’s valuation.

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Downloadable PDF version of this valuation:

ModernGraham Valuation of SYMC – August 2016

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 $14,540,594,499 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 2.05 Pass
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 -189.23% Fail
6. Moderate PEmg Ratio PEmg < 20 12.88 Pass
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 3.91 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 2.05 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 0.75 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

SYMC value chart August 2016

EPSmg $1.84
MG Growth Estimate 15.00%
MG Value $70.94
Opinion Undervalued
MG Grade B
MG Value based on 3% Growth $26.72
MG Value based on 0% Growth $15.66
Market Implied Growth Rate 2.19%
Current Price $23.73
% of Intrinsic Value 33.45%

Symantec 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, and the high PB ratio. 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 $0.5 in 2013 to an estimated $1.84 for 2017. This level of demonstrated earnings growth outpaces the market’s implied estimate of 2.19% 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 Symantec Corporation revealed the company was trading above its Graham Number of $12.19. The company pays a dividend of $0.53 per share, for a yield of 2.2%, putting it among the best dividend paying stocks today. Its PEmg (price over earnings per share – ModernGraham) was 12.88, which was below the industry average of 36.31, 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 $-1.56.

Symantec Corporation performs fairly well in the ModernGraham grading system, scoring a B.

Stage 3: Information for Further Research

SYMC charts August 2016

Net Current Asset Value (NCAV) -$1.56
Graham Number $12.19
PEmg 12.88
Current Ratio 2.05
PB Ratio 3.91
Current Dividend $0.53
Dividend Yield 2.21%
Number of Consecutive Years of Dividend Growth 0

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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 6/1/2016
Total Current Assets $6,799,000,000
Total Current Liabilities $3,322,000,000
Long-Term Debt $2,605,000,000
Total Assets $11,530,000,000
Intangible Assets $3,569,000,000
Total Liabilities $7,764,000,000
Shares Outstanding (Diluted Average) 620,000,000

Earnings Per Share History

Next Fiscal Year Estimate $1.08
Mar2016 $3.71
Mar2015 $1.26
Mar2014 $1.28
Mar2013 $1.06
Mar2012 $1.59
Mar2011 $0.76
Mar2010 $0.87
Mar2009 -$8.17
Mar2008 $0.52
Mar2007 $0.41
Mar2006 $0.15
Mar2005 $0.74
Mar2004 $0.54
Mar2003 $0.39
Mar2002 -$0.05
Mar2001 $0.12
Mar2000 $0.34
Mar1999 $0.11
Mar1998 $0.18
Mar1997 $0.06

Earnings Per Share – ModernGraham History

Next Fiscal Year Estimate $1.84
Mar2016 $2.08
Mar2015 $1.24
Mar2014 $1.19
Mar2013 $0.50
Mar2012 -$0.15
Mar2011 -$1.05
Mar2010 -$1.72
Mar2009 -$2.43
Mar2008 $0.45
Mar2007 $0.42
Mar2006 $0.40
Mar2005 $0.47
Mar2004 $0.31
Mar2003 $0.19
Mar2002 $0.11
Mar2001 $0.18

Recommended Reading:

Other ModernGraham posts about the company

5 Undervalued Companies for Enterprising Investors Near 52 Week Lows – February 2016
Symantec Corp Valuation – February 2016 $SYMC
15 Companies in the Spotlight This Week – 12/27/14
Symantec Corporation Annual Valuation – 2014 $SYMC
15 Companies in the Spotlight This Week – 12/27/14

Other ModernGraham posts about related companies

Adobe Systems Inc Valuation – August 2016 $ADBE
Microsoft Corporation Valuation – August 2016 $MSFT
Cisco Systems Inc Valuation – August 2016 $CSCO
Oracle Corporation Valuation – July 2016 $ORCL
CA Inc Valuation – July 2016 $CA
Red Hat Inc Valuation – June 2016 $RHT
Yahoo! Inc Valuation – June 2016 $YHOO
Alphabet Inc Valuation – June 2016 $GOOGL
Ansys Inc Valuation – June 2016 $ANSS
Citrix Systems Inc Valuation – May 2016 $CTXS

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.

Adobe Systems Inc Valuation – August 2016 $ADBE

Benjamin 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 or by reviewing the 10 Companies Benjamin Graham Would Invest In Today – July 2016.  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 stock analysis showing a specific look at how Adobe Systems Inc (ADBE) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Adobe Systems Incorporated is a software company. The Company offers products and services used by professionals, marketers, knowledge workers, application developers, enterprises and consumers for creating, managing, delivering, measuring, optimizing and engaging with compelling content and experiences. It operates through three segments: Digital Media, Digital Marketing, and Print and Publishing. Its Digital Media segment provides tools and solutions that enable individuals, small and medium businesses and enterprises to create, publish, promote and monetize their digital content. Its Digital Marketing segment provides solutions and services for how digital advertising and marketing are created, managed, executed, measured and optimized. Its Print and Publishing segment addresses market opportunities ranging from the diverse authoring and publishing needs of technical and business publishing to its legacy type and original equipment manufacturer (OEM) printing businesses.

ADBE Chart

ADBE data by YCharts

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Downloadable PDF version of this valuation:

ModernGraham Valuation of ADBE – August 2016

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 $49,814,744,355 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 2.20 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 17.85% Fail
6. Moderate PEmg Ratio PEmg < 20 70.71 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 6.99 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 2.20 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 0.67 Pass
3. Earnings Stability Positive EPS for 5 years prior Pass
4. Dividend Record Currently Pays Dividend Fail
5. Earnings Growth EPSmg greater than 5 years ago Fail

Stage 2: Determination of Intrinsic Value

ADBE value chart August 2016

EPSmg $1.42
MG Growth Estimate -0.72%
MG Value $10.00
Opinion Overvalued
MG Grade F
MG Value based on 3% Growth $20.57
MG Value based on 0% Growth $12.06
Market Implied Growth Rate 31.11%
Current Price $100.32
% of Intrinsic Value 1002.90%

Adobe Systems Incorporated does not satisfy the requirements of either the Enterprising Investor or 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 concerns regarding the lack of earnings growth over the last five years, and 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 seeing its EPSmg (normalized earnings) decline from $1.49 in 2012 to an estimated $1.42 for 2016. This level of demonstrated earnings growth does not support the market’s implied estimate of 31.11% 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 Adobe Systems Incorporated revealed the company was trading above its Graham Number of $27.95. The company does not pay a dividend. Its PEmg (price over earnings per share – ModernGraham) was 70.71, which was above the industry average of 36.31. Finally, the company was trading above its Net Current Asset Value (NCAV) of $0.54.

Adobe Systems Incorporated scores quite poorly in the ModernGraham grading system, with an overall grade of F.

Stage 3: Information for Further Research

ADBE charts August 2016

Net Current Asset Value (NCAV) $0.54
Graham Number $27.95
PEmg 70.71
Current Ratio 2.20
PB Ratio 6.99
Current Dividend $0.00
Dividend Yield 0.00%
Number of Consecutive Years of Dividend Growth 0

[/not-level-free]

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 5/1/2016
Total Current Assets $5,238,564,000
Total Current Liabilities $2,385,590,000
Long-Term Debt $1,918,389,000
Total Assets $12,216,783,000
Intangible Assets $5,938,749,000
Total Liabilities $4,968,172,000
Shares Outstanding (Diluted Average) 504,725,000

Earnings Per Share History

Next Fiscal Year Estimate $2.39
Nov2015 $1.24
Nov2014 $0.53
Nov2013 $0.56
Nov2012 $1.66
Nov2011 $1.65
Nov2010 $1.47
Nov2009 $0.73
Nov2008 $1.59
Nov2007 $1.21
Nov2006 $0.83
Nov2005 $1.19
Nov2004 $0.91
Nov2003 $0.55
Nov2002 $0.40
Nov2001 $0.42
Nov2000 $0.57
Nov1999 $0.46
Nov1998 $0.19
Nov1997 $0.32
Nov1996 $0.25

Earnings Per Share – ModernGraham History

Next Fiscal Year Estimate $1.42
Nov2015 $1.00
Nov2014 $0.98
Nov2013 $1.20
Nov2012 $1.49
Nov2011 $1.38
Nov2010 $1.22
Nov2009 $1.10
Nov2008 $1.24
Nov2007 $1.02
Nov2006 $0.88
Nov2005 $0.83
Nov2004 $0.62
Nov2003 $0.48
Nov2002 $0.43
Nov2001 $0.43
Nov2000 $0.41

Recommended Reading:

Other ModernGraham posts about the company

5 Speculative and Overvalued Companies to Avoid – June 2015
Adobe Systems Inc. Analysis – 2015 Update $ADBE
5 Speculative and Overvalued Companies to Avoid – October 2014
21 Companies in the Spotlight This Week – June 14, 2014
Adobe Systems Inc. Annual Valuation – 2014 $ADBE

Other ModernGraham posts about related companies

Microsoft Corporation Valuation – August 2016 $MSFT
Cisco Systems Inc Valuation – August 2016 $CSCO
Oracle Corporation Valuation – July 2016 $ORCL
CA Inc Valuation – July 2016 $CA
Red Hat Inc Valuation – June 2016 $RHT
Yahoo! Inc Valuation – June 2016 $YHOO
Alphabet Inc Valuation – June 2016 $GOOGL
Ansys Inc Valuation – June 2016 $ANSS
Citrix Systems Inc Valuation – May 2016 $CTXS
Symantec Corp Valuation – February 2016 $SYMC

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.

Microsoft Corporation Valuation – August 2016 $MSFT

Benjamin 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 or by reviewing the 10 Companies Benjamin Graham Would Invest In Today – July 2016.  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 stock analysis showing a specific look at how Microsoft Corporation (MSFT) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Microsoft Corporation is a technology company. The Company develops, licenses and supports a range of software products, services and devices. Its segments are Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. Its products include operating systems; cross-device productivity applications; server applications; business solution applications; desktop and server management tools; software development tools; video games, and training and certification of computer system integrators and developers. It also designs, manufactures, and sells devices, including personal computers, tablets, gaming and entertainment consoles, phones, other intelligent devices, and related accessories, that integrate with its cloud-based offerings. It offers an array of services, including cloud-based solutions that provide customers with software, services, platforms, and content, and it provides solution support and consulting services. It also delivers online advertising.

chart (55)

 

Downloadable PDF version of this valuation:

ModernGraham Valuation of MSFT – August 2016

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 $448,992,627,141 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 2.35 Pass
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 13.42% Fail
6. Moderate PEmg Ratio PEmg < 20 24.99 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 6.39 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 2.35 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 0.51 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 Fail

Stage 2: Determination of Intrinsic Value

MSFT value chart August 2016

EPSmg $2.30
MG Growth Estimate -0.13%
MG Value $18.92
Opinion Overvalued
MG Grade C+
MG Value based on 3% Growth $33.33
MG Value based on 0% Growth $19.54
Market Implied Growth Rate 8.24%
Current Price $57.44
% of Intrinsic Value 303.53%

Microsoft Corporation 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 high PEmg and PB ratios. The Enterprising Investor is only concerned with the lack of earnings growth over the last five years. 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 seeing its EPSmg (normalized earnings) decline from $2.32 in 2013 to an estimated $2.3 for 2017. This level of demonstrated earnings growth does not support the market’s implied estimate of 8.24% 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 Microsoft Corporation revealed the company was trading above its Graham Number of $23.93. The company pays a dividend of $1.39 per share, for a yield of 2.4%, putting it among the best dividend paying stocks today. Its PEmg (price over earnings per share – ModernGraham) was 24.99, which was below the industry average of 36.31, 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 $2.24.

Microsoft Corporation receives an average overall rating in the ModernGraham grading system, scoring a C+.

Stage 3: Information for Further Research

MSFT charts August 2016

Net Current Asset Value (NCAV) $2.24
Graham Number $23.93
PEmg 24.99
Current Ratio 2.35
PB Ratio 6.39
Current Dividend $1.39
Dividend Yield 2.42%
Number of Consecutive Years of Dividend Growth 15

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 6/1/2016
Total Current Assets $139,660,000,000
Total Current Liabilities $59,357,000,000
Long-Term Debt $40,783,000,000
Total Assets $193,694,000,000
Intangible Assets $21,605,000,000
Total Liabilities $121,697,000,000
Shares Outstanding (Diluted Average) 8,013,000,000

Earnings Per Share History

Next Fiscal Year Estimate $2.76
Jun2016 $2.10
Jun2015 $1.48
Jun2014 $2.63
Jun2013 $2.58
Jun2012 $2.00
Jun2011 $2.69
Jun2010 $2.10
Jun2009 $1.62
Jun2008 $1.87
Jun2007 $1.42
Jun2006 $1.20
Jun2005 $1.12
Jun2004 $0.75
Jun2003 $0.69
Jun2002 $0.48
Jun2001 $0.66
Jun2000 $0.85
Jun1999 $0.71
Jun1998 $0.42
Jun1997 $0.33

Earnings Per Share – ModernGraham History

Next Fiscal Year Estimate $2.30
Jun2016 $2.10
Jun2015 $2.16
Jun2014 $2.46
Jun2013 $2.32
Jun2012 $2.14
Jun2011 $2.12
Jun2010 $1.78
Jun2009 $1.56
Jun2008 $1.44
Jun2007 $1.16
Jun2006 $0.97
Jun2005 $0.82
Jun2004 $0.67
Jun2003 $0.65
Jun2002 $0.63
Jun2001 $0.67

Recommended Reading:

Other ModernGraham posts about the company

Microsoft Corp Valuation – February 2016 $MSFT
Microsoft Corporation Valuation – November 2015 Update $MSFT
Microsoft Corp Valuation – February 2016 $MSFT
Microsoft Corporation Valuation – November 2015 Update $MSFT
Microsoft Corporation Analysis – August 2015 Update $MSFT

Other ModernGraham posts about related companies

Cisco Systems Inc Valuation – August 2016 $CSCO
Oracle Corporation Valuation – July 2016 $ORCL
CA Inc Valuation – July 2016 $CA
Red Hat Inc Valuation – June 2016 $RHT
Yahoo! Inc Valuation – June 2016 $YHOO
Alphabet Inc Valuation – June 2016 $GOOGL
Ansys Inc Valuation – June 2016 $ANSS
Citrix Systems Inc Valuation – May 2016 $CTXS
Symantec Corp Valuation – February 2016 $SYMC
Microsoft Corp Valuation – February 2016 $MSFT

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.

Cisco Systems Inc Valuation – August 2016 $CSCO

Benjamin 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 or by reviewing the 10 Companies Benjamin Graham Would Invest In Today – July 2016.  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 stock analysis showing a specific look at how Cisco Systems Inc (CSCO) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Cisco System, Inc. (Cisco) designs and sells lines of products, provides services and delivers integrated solutions to develop and connect networks around the world, building the Internet. The Company is engaged in designing, manufacturing and selling Internet Protocol (IP)-based networking and other products related to the communications and information technology (IT) industry, and provides services associated with these products and their use. The Company operates its business through three segments: The Americas; Europe, Middle East, and Africa (EMEA), and Asia Pacific, Japan, and China (APJC). It groups its products and technologies into the various categories, such as Switching, Next-Generation Network (NGN) Routing, Collaboration, Service Provider Video, Data Center, Wireless, Security, and Other Products. In addition to its product offerings, it provides a range of service offerings, including technical support services and advanced services.

CSCO Chart

CSCO data by YCharts

 

Downloadable PDF version of this valuation:

ModernGraham Valuation of CSCO – August 2016

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 $154,865,867,347 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 3.27 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 52.41% Pass
6. Moderate PEmg Ratio PEmg < 20 16.91 Pass
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 2.51 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 3.27 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 0.45 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

CSCO value chart August 2016

EPSmg $1.83
MG Growth Estimate 6.03%
MG Value $37.53
Opinion Fairly Valued
MG Grade B
MG Value based on 3% Growth $26.47
MG Value based on 0% Growth $15.52
Market Implied Growth Rate 4.21%
Current Price $30.87
% of Intrinsic Value 82.26%

Cisco Systems, Inc. qualifies for both the Defensive Investor and the Enterprising Investor. The Defensive Investor is only initially concerned with the poor dividend history. 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 Fairly Valued after growing its EPSmg (normalized earnings) from $1.3 in 2012 to an estimated $1.83 for 2016. This level of demonstrated earnings growth supports the market’s implied estimate of 4.21% 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 within a margin of safety relative to the price.

At the time of valuation, further research into Cisco Systems, Inc. revealed the company was trading above its Graham Number of $24.42. The company pays a dividend of $0.89 per share, for a yield of 2.9%, putting it among the best dividend paying stocks today. Its PEmg (price over earnings per share – ModernGraham) was 16.91, which was below the industry average of 36.31, 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 $4.4.

Cisco Systems, Inc. performs fairly well in the ModernGraham grading system, scoring a B.

Stage 3: Information for Further Research

CSCO charts August 2016

Net Current Asset Value (NCAV) $4.40
Graham Number $24.42
PEmg 16.91
Current Ratio 3.27
PB Ratio 2.51
Current Dividend $0.89
Dividend Yield 2.88%
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 4/1/2016
Total Current Assets $78,571,000,000
Total Current Liabilities $24,003,000,000
Long-Term Debt $24,431,000,000
Total Assets $118,654,000,000
Intangible Assets $29,506,000,000
Total Liabilities $56,296,000,000
Shares Outstanding (Diluted Average) 5,065,000,000

Earnings Per Share History

Next Fiscal Year Estimate $2.14
Jul2015 $1.75
Jul2014 $1.49
Jul2013 $1.86
Jul2012 $1.49
Jul2011 $1.17
Jul2010 $1.33
Jul2009 $1.05
Jul2008 $1.31
Jul2007 $1.17
Jul2006 $0.89
Jul2005 $0.87
Jul2004 $0.62
Jul2003 $0.50
Jul2002 $0.25
Jul2001 -$0.14
Jul2000 $0.36
Jul1999 $0.29
Jul1998 $0.20
Jul1997 $0.17
Jul1996 $0.16

Earnings Per Share – ModernGraham History

Next Fiscal Year Estimate $1.83
Jul2015 $1.63
Jul2014 $1.54
Jul2013 $1.50
Jul2012 $1.30
Jul2011 $1.21
Jul2010 $1.20
Jul2009 $1.11
Jul2008 $1.08
Jul2007 $0.92
Jul2006 $0.74
Jul2005 $0.58
Jul2004 $0.40
Jul2003 $0.27
Jul2002 $0.17
Jul2001 $0.15
Jul2000 $0.27

Recommended Reading:

Other ModernGraham posts about the company

5 Undervalued Companies for the Defensive Investor Near 52 Week Lows – February 2016
26 Best Stocks For Value Investors This Week – 2/6/16
Cisco Systems Inc Valuation – February 2016 $CSCO
10 Undervalued Companies for the Defensive Dividend Stock Investor – February 2016
10 Undervalued Companies for the Defensive Dividend Stock Investor – December 2015

Other ModernGraham posts about related companies

Oracle Corporation Valuation – July 2016 $ORCL
CA Inc Valuation – July 2016 $CA
Red Hat Inc Valuation – June 2016 $RHT
Yahoo! Inc Valuation – June 2016 $YHOO
Alphabet Inc Valuation – June 2016 $GOOGL
Ansys Inc Valuation – June 2016 $ANSS
Citrix Systems Inc Valuation – May 2016 $CTXS
Symantec Corp Valuation – February 2016 $SYMC
Microsoft Corp Valuation – February 2016 $MSFT
Cisco Systems Inc Valuation – February 2016 $CSCO

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.

Oracle Corporation Valuation – July 2016 $ORCL

Benjamin 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 or by reviewing the 10 Companies Benjamin Graham Would Invest In Today – June 2016.  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 stock analysis showing a specific look at how Oracle Corporation (ORCL) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Oracle Corporation (Oracle) provides products and services that address all aspects of corporate information technology (IT) environments, including application, platform and infrastructure. The Company’s businesses include cloud and on-premise software, hardware and services. Its cloud and on-premise software business consists of three segments, including cloud software and on-premise software, which includes Software as a Service (SaaS) and Platform as a Service (PaaS) offerings, cloud infrastructure as a service (IaaS) and software license updates and product support. Its hardware business consists of two segments, including hardware products and hardware support. The Company’s services business includes the remainder of the Company’s segments. Its services business includes activities, such as consulting services, enhanced support services and education services, among others.

[level-free]

To read the details of this valuation, you must be logged in as a premium member. If you are not a premium member, please consider becoming one.

Premium members can view a full ModernGraham valuation of the company and have access to download a PDF version of the valuation for easy reference. Here is a free sample valuation pdf, and here is a post detailing what can be found within each individual company’s valuation.

[/level-free]
[not-level-free]

Downloadable PDF version of this valuation:

ModernGraham Valuation of ORCL – July 2016

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 $172,619,664,184 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 3.74 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 106.55% Pass
6. Moderate PEmg Ratio PEmg < 20 17.78 Pass
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 3.80 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 3.74 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 0.85 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

ORCL value chart July 2016

EPSmg $2.35
MG Growth Estimate 4.11%
MG Value $39.25
Opinion Fairly Valued
MG Grade C+
MG Value based on 3% Growth $34.06
MG Value based on 0% Growth $19.96
Market Implied Growth Rate 4.64%
Current Price $41.77
% of Intrinsic Value 106.43%

Oracle Corporation is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the poor dividend history, and the high PB ratio. 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 Fairly Valued after growing its EPSmg (normalized earnings) from $1.84 in 2013 to an estimated $2.35 for 2017. This level of demonstrated earnings growth supports the market’s implied estimate of 4.64% 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 within a margin of safety relative to the price.

Oracle Corporation receives an average overall rating in the ModernGraham grading system, scoring a C+.

Stage 3: Information for Further Research

ORCL charts July 2016

Net Current Asset Value (NCAV) -$0.13
Graham Number $26.17
PEmg 17.78
Current Ratio 3.74
PB Ratio 3.80
Current Dividend $0.60
Dividend Yield 1.44%
Number of Consecutive Years of Dividend Growth 4

[/not-level-free]

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 5/1/2016
Total Current Assets $64,313,000,000
Total Current Liabilities $17,208,000,000
Long-Term Debt $40,105,000,000
Total Assets $112,180,000,000
Intangible Assets $39,533,000,000
Total Liabilities $64,891,000,000
Shares Outstanding (Diluted Average) 4,305,000,000

Earnings Per Share History

Next Fiscal Year Estimate $2.66
May2016 $2.07
May2015 $2.21
May2014 $2.38
May2013 $2.26
May2012 $1.96
May2011 $1.67
May2010 $1.21
May2009 $1.09
May2008 $1.06
May2007 $0.81
May2006 $0.64
May2005 $0.55
May2004 $0.50
May2003 $0.43
May2002 $0.39
May2001 $0.44
May2000 $1.05
May1999 $0.22
May1998 $0.14
May1997 $0.14

Earnings Per Share – ModernGraham History

Next Fiscal Year Estimate $2.35
May2016 $2.19
May2015 $2.20
May2014 $2.09
May2013 $1.84
May2012 $1.56
May2011 $1.29
May2010 $1.06
May2009 $0.93
May2008 $0.80
May2007 $0.65
May2006 $0.54
May2005 $0.48
May2004 $0.49
May2003 $0.49
May2002 $0.50
May2001 $0.50

Recommended Reading:

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13 Best Stocks For Value Investors This Week – 10/3/15
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Other ModernGraham posts about related companies

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Ansys Inc Valuation – June 2016 $ANSS
Citrix Systems Inc Valuation – May 2016 $CTXS
Symantec Corp Valuation – February 2016 $SYMC
Microsoft Corp Valuation – February 2016 $MSFT
Cisco Systems Inc Valuation – February 2016 $CSCO
CA Inc Valuation – January 2016 Update $CA

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.

CA Inc Valuation – July 2016 $CA

Benjamin 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 or by reviewing the 10 Companies Benjamin Graham Would Invest In Today – June 2016.  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 stock analysis showing a specific look at how CA Inc (CA) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): CA, Inc. (CA Technologies) is engaged in providing information technology (IT) management software and solutions. The Company operates through three business segments: Mainframe Solutions, Enterprise Solutions and Services. The Mainframe Solutions segment products allow customers and partners transform mainframe management. The Enterprise Solutions segment consists of products, including DevOps, which allows customers to unite application development and IT operations; Management Cloud, which includes the Company’s IT Business Management (ITBM) solutions, API Management solutions and Enterprise Mobility Management solutions, and Security, which consists of identity and access management. The Services segment consists of product implementation, consulting, customer education and customer training.

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ModernGraham Valuation of CA – July 2016

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 $13,758,473,405 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 1.23 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 68.56% Pass
6. Moderate PEmg Ratio PEmg < 20 15.56 Pass
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 2.60 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 1.23 Fail
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 2.92 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

CA value chart July 2016

EPSmg $2.11
MG Growth Estimate 2.47%
MG Value $28.32
Opinion Overvalued
MG Grade B-
MG Value based on 3% Growth $30.55
MG Value based on 0% Growth $17.91
Market Implied Growth Rate 3.53%
Current Price $32.78
% of Intrinsic Value 115.75%

CA, Inc. 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 Overvalued after growing its EPSmg (normalized earnings) from $1.81 in 2013 to an estimated $2.11 for 2017. This level of demonstrated earnings growth does not support the market’s implied estimate of 3.53% 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.

CA, Inc. performs fairly well in the ModernGraham grading system, scoring a B-.

Stage 3: Information for Further Research

CA charts July 2016

Net Current Asset Value (NCAV) -$5.30
Graham Number $27.13
PEmg 15.56
Current Ratio 1.23
PB Ratio 2.60
Current Dividend $1.00
Dividend Yield 3.05%
Number of Consecutive Years of Dividend Growth 0

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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 3/1/2016
Total Current Assets $3,561,000,000
Total Current Liabilities $2,894,000,000
Long-Term Debt $1,947,000,000
Total Assets $11,204,000,000
Intangible Assets $6,881,000,000
Total Liabilities $5,826,000,000
Shares Outstanding (Diluted Average) 427,000,000

Earnings Per Share History

Next Fiscal Year Estimate $2.51
Mar2016 $1.81
Mar2015 $1.90
Mar2014 $2.02
Mar2013 $2.07
Mar2012 $1.93
Mar2011 $1.61
Mar2010 $1.47
Mar2009 $1.29
Mar2008 $0.93
Mar2007 $0.22
Mar2006 $0.27
Mar2005 $0.02
Mar2004 $0.04
Mar2003 -$0.46
Mar2002 -$1.91
Mar2001 -$1.02
Mar2000 $1.25
Mar1999 $1.11
Mar1998 $2.06
Mar1997 $0.64

Earnings Per Share – ModernGraham History

Next Fiscal Year Estimate $2.11
Mar2016 $1.92
Mar2015 $1.95
Mar2014 $1.92
Mar2013 $1.81
Mar2012 $1.60
Mar2011 $1.33
Mar2010 $1.07
Mar2009 $0.76
Mar2008 $0.43
Mar2007 $0.12
Mar2006 -$0.09
Mar2005 -$0.40
Mar2004 -$0.54
Mar2003 -$0.63
Mar2002 -$0.37
Mar2001 $0.53

Recommended Reading:

Other ModernGraham posts about the company

18 Best Stocks For Value Investors This Week – 1/30/16
CA Inc Valuation – January 2016 Update $CA
10 Undervalued Companies for the Defensive Dividend Stock Investor – December 2015
10 Undervalued Companies for the Defensive Dividend Stock Investor – November 2015
10 Undervalued Companies for the Defensive Dividend Stock Investor – September 2015

Other ModernGraham posts about related companies

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Citrix Systems Inc Valuation – May 2016 $CTXS
Symantec Corp Valuation – February 2016 $SYMC
Microsoft Corp Valuation – February 2016 $MSFT
Cisco Systems Inc Valuation – February 2016 $CSCO
CA Inc Valuation – January 2016 Update $CA
Intuit Inc Valuation – January 2016 Update $INTU

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.

Red Hat Inc Valuation – June 2016 $RHT

Benjamin 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 or by reviewing the 10 Companies Benjamin Graham Would Invest In Today – June 2016.  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 stock analysis showing a specific look at how Red Hat Inc (RHT) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Red Hat, Inc. (Red Hat) provides open source software solutions, using a community-powered approach to develop and offer operating system, virtualization, management, middleware, cloud, mobile and storage technologies. Red Hat operates through three geographical segments: the Americas, including the United States, Canada and Latin America; EMEA, including Europe, Middle East and Africa, and Asia Pacific. Its products and services include infrastructure-related offerings, application development-related and other technology offerings, and consulting, support and training services. Its infrastructure-related offerings include Red Hat Enterprise Linux, Red Hat Satellite and Red Hat Enterprise Virtualization. Its application development-related and other technology offerings include Red Hat JBoss Middleware, Red Hat cloud offerings, Red Hat Mobile and Red Hat Storage. Its consulting services include upgrade planning, platform migrations, solution integration and application development.

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To read the details of this valuation, you must be logged in as a premium member. If you are not a premium member, please consider becoming one.

Premium members can view a full ModernGraham valuation of the company and have access to download a PDF version of the valuation for easy reference. Here is a free sample valuation pdf, and here is a post detailing what can be found within each individual company’s valuation.

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Downloadable PDF version of this valuation:

ModernGraham Valuation of RHT – June 2016

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 $13,459,130,694 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 1.25 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 251.67% Pass
6. Moderate PEmg Ratio PEmg < 20 52.70 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 9.96 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 1.25 Fail
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 1.92 Fail
3. Earnings Stability Positive EPS for 5 years prior Pass
4. Dividend Record Currently Pays Dividend Fail
5. Earnings Growth EPSmg greater than 5 years ago Pass

Stage 2: Determination of Intrinsic Value

RHT value chart June 2016

EPSmg $1.38
MG Growth Estimate 15.00%
MG Value $53.28
Opinion Overvalued
MG Grade F
MG Value based on 3% Growth $20.07
MG Value based on 0% Growth $11.76
Market Implied Growth Rate 22.10%
Current Price $72.93
% of Intrinsic Value 136.87%

Red Hat 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, and the high PEmg and PB ratios. The Enterprising Investor has concerns regarding the level of debt relative to the current assets, and 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 $0.65 in 2013 to an estimated $1.38 for 2017. This level of demonstrated earnings growth does not support the market’s implied estimate of 22.1% 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.

Red Hat Inc scores quite poorly in the ModernGraham grading system, with an overall grade of F.

Stage 3: Information for Further Research

RHT charts June 2016

Net Current Asset Value (NCAV) -$4.77
Graham Number $19.19
PEmg 52.70
Current Ratio 1.25
PB Ratio 9.96
Current Dividend $0.00
Dividend Yield 0.00%
Number of Consecutive Years of Dividend Growth 0

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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 5/1/2016
Total Current Assets $1,883,953,000
Total Current Liabilities $1,504,477,000
Long-Term Debt $729,307,000
Total Assets $4,112,281,000
Intangible Assets $1,170,340,000
Total Liabilities $2,762,946,000
Shares Outstanding (Diluted Average) 184,187,000

Earnings Per Share History

Next Fiscal Year Estimate $2.20
Feb2016 $1.07
Feb2015 $0.95
Feb2014 $0.93
Feb2013 $0.77
Feb2012 $0.75
Feb2011 $0.55
Feb2010 $0.45
Feb2009 $0.39
Feb2008 $0.36
Feb2007 $0.29
Feb2006 $0.41
Feb2005 $0.24
Feb2004 $0.08
Feb2003 $0.00
Feb2002 -$0.06
Feb2001 -$0.53
Feb2000 -$0.40
Feb1999 -$0.01
Feb1998 -$0.02

Earnings Per Share – ModernGraham History

Next Fiscal Year Estimate $1.38
Feb2016 $0.95
Feb2015 $0.86
Feb2014 $0.77
Feb2013 $0.65
Feb2012 $0.56
Feb2011 $0.45
Feb2010 $0.39
Feb2009 $0.35
Feb2008 $0.32
Feb2007 $0.26
Feb2006 $0.21
Feb2005 $0.06
Feb2004 -$0.08
Feb2003 -$0.18
Feb2002 -$0.24
Feb2001 -$0.29

Recommended Reading:

Other ModernGraham posts about the company

21 Companies in the Spotlight This Week – 5/9/15
Red Hat Inc. Annual Valuation – May 2015 $RHT
16 Companies in the Spotlight This Week – 4/26/14
Red Hat Inc. (RHT) Annual Valuation – 2014

Other ModernGraham posts about related companies

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Alphabet Inc Valuation – June 2016 $GOOGL
Ansys Inc Valuation – June 2016 $ANSS
Citrix Systems Inc Valuation – May 2016 $CTXS
Symantec Corp Valuation – February 2016 $SYMC
Microsoft Corp Valuation – February 2016 $MSFT
Cisco Systems Inc Valuation – February 2016 $CSCO
CA Inc Valuation – January 2016 Update $CA
Intuit Inc Valuation – January 2016 Update $INTU
Microsoft Corp Valuation – February 2016 $MSFT

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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