Summary While CM recently reported solid FY2017 results, its higher exposure to the heavily indebted Canadian consumer relative to its peers does make it more vulnerable to an economic slowdown. PAA Research in the US recently released a report suggesting that CM faces headwinds which will likely result in a 30 – 40% pullback in [...]
Summary RY recently reported solid FY2017 results. It does, however, face headwinds which may result in slower growth in 2018. PAA Research in the US recently released a report suggesting that RY faces headwinds which will likely result in a 30 – 40% pullback in its stock price with the potential for a 50% correction. [...]
Summary HRL recently reported its FY2017 results and also announced its 52nd consecutive increase to its annual dividend. Challenges persist in a couple of HRL’s divisions but its diversified portfolio of products and geographic presence mitigates some of the volatility. Growth by acquisition continues with 2 acquisitions completed subsequent to July 2017 and another expected [...]
Summary SJM recently reported Q2 results reflecting a marginal deterioration in adjusted gross profit margin and adjusted operating income margin relative to Q2 2017. Adjusted EPS revised downward for the second time subsequent to the release of FY adjusted EPS in June 2017 but FCF forecast remains consistent at $0.775B. SJM has a 4 pronged [...]
Summary NKE recently held its Investor Day in which it presented its strategy to improve results. Game changing innovation is expected to contribute to improved margins. Unlike many other companies, NKE is not using a significant amount of debt to financially engineer its stock price and EPS. NKE is suitable for a risk averse investor [...]
Summary 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. [...]
Summary 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 [...]
Summary 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 [...]
Summary 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. [...]
Summary 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 [...]