Wal-Mart Stock Analysis – Don’t Rule Out This Company

Summary

  • This Wal-Mart (NYSE: WMT) stock analysis is based on Q4 and FY2017 results released February 21, 2017.
  • WMT reported $4.38 Diluted EPS from continuing operations.
  • Total revenue of $485.9B increased 0.8% or 3.1% to $496.9B if currency adjustments are excluded.
  • Operating income decreased 5.6% to $22.8B or decreased 2.9% to $23.4B when currency adjustments are excluded.
  • $31.5B in operating cash flow and $6.2B in dividends and $8.3B in share repurchases.
  • WMT generated just under $21B in FCF!!!

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VF Corporation Stock Analysis – There Are Better Investment Options Out There

Summary

  • This VF Corporation stock analysis is based on Q4 and FY 2016 results and the outlook for fiscal 2017 which were released February 17, 2017.
  • Market conditions continue to be extremely challenging.
  • VFC is unlikely to hit many of its 17X17 key targets which it introduced to shareholders in June 2013.
  • VFC continues to reward shareholders with attractive annual dividend increases but this is small consolation for investors who acquired shares 2014 – 2016.
  • I do not view VFC as a company I will be acquiring any time soon.

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United Technologies Stock Analysis – Another Company Making Huge Share Buybacks

Summary

  • This United Technologies stock analysis is based on its Q4 and FY2016 results reported January 25, 2017.
  • 2016 GAAP EPS of $6.13, up 35% vs. FY2015 and adjusted EPS of $6.61, up 5% vs. FY2015.
  • Adjusted EPS of $6.30 – $6.60 projected for FY 2017.
  • Treasury Stock has increased roughly $12B from FYE 2014-FYE 2016 of which $6B came from sale of Sikorsky Aircraft.
  • UTX is unlikely to be a favorite for an investor focused solely, or primarily, on dividend yield.
  • UTX is an example of how investing in a company at different times can have entirely different results thus leading to extremely different opinions about a company.

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Cisco Stock Analysis – Sometimes Investment Ideas are Right Under Your Nose

Summary

  • This Cisco stock analysis is based on Q2 results and outlook for remainder of fiscal 2017 which were released February 15, 2017.
  • Cisco reported $11.6B in revenue, a 2% YoY decrease, but in line with guidance of a 2% – 4% YoY decline.
  • “Cash” of $71.8B at the end of Q2 2017 with only $9.6B is in the US. The introduction of a Corporate Tax Holiday could have huge + ramifications for CSCO.
  • CSCO announced an increase in its quarterly dividend from $0.26 to $0.29 effective with the April 26, 2017 dividend.
  • CSCO is no longer a super-charged high growth company but don’t rule it out as an investment because it should continue to reward shareholders.

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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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