- This Home Depot Stock Analysis is based on Q3 results reported November 14, 2017 which includes increased diluted EPS guidance to $7.36 which is growth of approximately ~14% from fiscal 2016.
- It is one of a handful of companies with monster share buyback programs. A $15B share buyback program was authorized in early 2017.
- HD has reduced the number of outstanding shares by ~490 Million since early 2008 and long-term debt has increased by ~$11B.
- Strong free cash flow should enable HD to service/retire its debt obligations when due but HD can’t continue in perpetuity to boost its dividend and share price through the use of debt.
Continue reading “Home Depot – Share Price and Dividends Boosted Through Significant Use of Debt”
- This Paychex stock analysis is based on Q1 2018 result as at August 31, 2017.
- Paychex is a leading provider of payroll processing, human resources and benefits services.
- It is expensive at current the current price of ~$64.50.
- A price in the low $50s or below is more reasonable and is not totally out of the realm of possibility.
Continue reading “Paychex Stock Analysis – Looking for a Re-Entry Price in the Low $50s”
- Praxair reported strong Q3 2017 results on October 26, 2017 and provided an update on its proposed merger with Linde.
- The successful completion of the Praxair Linde merger in the 2nd half of 2018 will make the combined entity the largest player in the industry.
- Air Products reported strong Q4 and FY2017 results from continuing operations. With its strong balance sheet management expects to invest over $8B over the next three years.
- In FY2017, Air Products divested non-core assets through the spin-off of Versum Materials and the sale of Performance Materials.
- Both companies are expensive at current levels. I will monitor both companies with the intent of eventually acquiring shares in both companies when they are more attractively valued.
Continue reading “Praxair and Air Products Stock Analysis – Buy Both When Fairly Valued”
- This Cintas Corporation stock analysis is based on Q1 2018 results released September 26, 2017.
- Cintas completed the transformative acquisition of one of its largest competitors (G&K Services, Inc.) earlier this year and integration is proceeding as planned.
- Valuation is stretched with a forward PE of ~27 versus the historical ~20 – 21 level.
- The dividend is paid annually. Unless you are a shareholder of record as at November 10, 2017, you should not expect to receive a dividend until December 2018.
Continue reading “Cintas Corporation Stock Analysis – I’m Interested But Not At Current Price”
- This Emerson Electric stock analysis is based on Q4 and FY2017 results released November 7, 2017.
- FY2017 marks the 3rd year of EMR’s multi-year transformation.
- EMR has continuously increased its annual dividend for ~60 consecutive years. A $0.02 annual dividend increase announced November 7th marks the 3rd consecutive year with a ~1% increase.
- A recent proposal to Rockwell Automation to combine with EMR was rebuffed. I expect EMR to continue to hunt for potential acquisitions.
- EMR appears to be somewhat expensive at ~$63. In my opinion, a~$51 – $54 price range is more appropriate.
Continue reading “Emerson Electric Stock Analysis – Wait For A Dip To Low/Mid $50s”
- This Church & Dwight analysis is based on Q3 results released Nov 2nd and its September 7th Barclays Back to School Conference presentation.
- CHD’s ability to be a serial acquirer is the result of its strong free cash flow. It has tripled its free cash flow to ~$0.6B in a span of 10 years.
- In FY2016, 82% of CHD’s sales were in the US. CHD is now making a concerted effort to expand its international sales from the $0.525B reported in FY2016.
- CHD was richly valued a few months ago. The stock price has pulled back ~20% from its high set in July 2017.
- CHD is now attractively valued and I would acquire additional CHD shares at current levels but we already have a full position.
Continue reading “Church & Dwight Stock Analysis – Attractive After 20% Pullback From July 2017 High”
- This MasterCard stock analysis is based on Q3 2017 results released October 31, 2017 and the September 7, 2017 Investor Day presentation.
- MA and V are the two highest convictions stocks amongst the ~50 companies in which my wife/I own shares.
- MA likely gets overlooked by many investors because of its sub 1% dividend yield and short dividend history.
- MA has a robust suite of products/services and new offerings are continually being developed/acquired. I foresee continued growth over the long-term.
Continue reading “MasterCard Stock Analysis – One Of My Strongest Conviction Holdings”