PepsiCo Stock Analysis – Don’t Complicate Your Investment Decisions

Summary

  • This PepsiCo stock analysis is based on Q4 and FY2016 financial results and its outlook for 2017 which were released on February 15, 2016.
  • Organic revenue, which excludes the impact of various items, grew 3.7%.
  • 2017 core earnings of $5.09/share expected compared to $4.85/share in 2016.
  • 2016 Free Cash Flow (FCF) of $7.786B with approximately $10B in cash flow from operating activities and $7B FCF projected for 2017.
  • PEP announced an increase in its quarterly dividend ($0.7525 increased to $0.805) effective with the June 2017 dividend.

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Brookfield Asset Management Stock Analysis: A Solid Long-Term Investment

Summary

  • This Brookfield Asset Management stock analysis is based on Q4 and FY2016 results and outlook for fiscal 2017 which were released February 9, 2017.
  • Brookfield Asset Management (BAM) reflect a YoY increase in Funds from Operations (CDN$3.18 for 2016 vs. CDN$2.49 for 2015).
  • The nature of BAM’s operations is such that I prefer to use Funds from Operations (“FFO”) as opposed to Net Income as the basis on which to make an investment decision.
  • BAM is now at the stage where the “wealthy of the wealthy” seek it out for investment opportunities.

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Broadridge Financial Stock Analysis – Disciplined Growth

Summary

  • This Broadridge Financial (NYSE: BR) stock anlysis is based on Q2 2017 and first half of FY 2017 results released February 8, 2017.
  • Broadridge handles proxy voting services for over 90% of public companies and mutual funds in N.A. and processes more than $5T in fixed income and equity trades daily.
  • In the first 6 months of FY 2017 revenue has increased 45% from the same period in FY 2016.
  • Integration of the NACC business it acquired in mid 2016 is proceeding smoothly.
  • Strong total revenue growth, recurring fee revenue growth, and FCF projected for remainder of the year.
  • Don’t overlook BR because of its low dividend yield.

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Emerson Electric Stock Analysis – I Hope It Rises to the New Challenge

 

Summary

  • This Emerson Electric stock analysis is based on Q1 2017 results and outlook for remainder of fiscal 2017 which were released February 7, 2017.
  • EMR is currently undergoing a major transformation of its business to reverse the deterioration in its financial performance.
  • Markets reacted positively to EMR’s Q1 2017 results.
  • I think EMR is overpriced by $18 – $20/share and that investors are not being adequately compensated for the risks involved.
  • On February 7, 2017, EMR’s Board declared the regular quareterly cash dividend of $0.48/share payable March 10, 2017. This is the 2nd consecutive quarter of EMR’s minuscule $0.005/share dividend increase.

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Church & Dwight Stock Analysis – Don’t Overlook this Company

Summary

  • This Church & Dwight stock analysis is based on Q4 and FY2016 results and outlook for fiscal 2017 which were released February 7, 2017.
  • Continued growth is expected through the introduction of innovative new products, aggressive productivity programs, and tight management of overhead costs.
  • CHD is also growing through the strategic acquisition of various established brands.
  • CHD declared a 7% increase in the regular quarterly dividend from $0.1775/share to $0.19/share payable March 1, 2017.
  • This dividend increase marks the 21st consecutive year in which CHD has increased its dividend and the 116th year in which it has paid a regular consecutive quarterly dividend.

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Hershey Stock Analysis – Boring Can Be Sexy

Summary

  • This Hershey stock analysis is based on Q4 and FY2016 results and outlook for fiscal 2017 which were released February 3, 2017.
  • For the 3rd time this century, The Hershey Company spurned a takeover offer in 2016. Don’t expect The Hershey Trust Company to ever sell.
  • While FY2016 results were acceptable, the Chinese need to step up and buy more HSY chocolate; sales in China were down 4% in Q4 (same rate as Q2 and Q3).
  • I am reluctant to acquire any more HSY shares unless the price retraces to $95 or below.
  • I encourage readers to purchase HSY chocolates for Valentine’s Day (February 14th).

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VISA Stock Analysis – Still Humming Along

Summary

  • This VISA stock analysis is based on Q1 results and outlook for the remainder of fiscal 2017 which were released February 2, 2017.
  • Visa reported reasonably solid results for Q1 2017 on February 2, 2017.
  • While I would be prepared to buy shares at $82, we already have a full position. I will, therefore, patiently wait until V drops to $75.
  • The use of options could provide you with an opportunity to earn some premium while you wait for V to reach a more attractive level.

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