SanDisk Corporation ($SNDK) Confident Investor Rating: Poor

Company name SanDisk Corporation
Stock ticker SNDK
Live stock price [stckqut]SNDK[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Fair
Sales growth Poor
EPS growth Poor
P/E growth Good
EBIT growth Poor

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $20.62
Target stock price (averages with growth) $13.46
Target stock price (averages with no growth) $10.48
Target stock price (manual assumptions) $34.33

The following company description is from Google Finance: http://www.google.com/finance?q=sndk

SanDisk Corporation provides flash storage solutions. The Company designs, develops and manufactures data storage solutions in a variety of form factors using flash memory, controller, firmware and software technologies. The Company’s solutions include a range of solid state drives (SSD), embedded products, removable cards, universal serial bus (USB), drives, wireless media drives, digital media players, and wafers and components. The SSD products are used in enterprise data centers and client computing platforms. Its embedded flash products are used in mobile phones, tablets, computing platforms, imaging devices and automobiles. The Company’s removable cards are used in a range of applications, such as mobile phones, tablets, digital cameras, gaming devices, personal computers (PC) and automobiles. It also offers software solutions, which are used in conjunction with flash storage products.

 

Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in SanDisk Corporation. I am removing the stock from my Watch List.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of SanDisk Corporation calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $48.75
  • Growth: 0.03
  • Current EPS (TTM): $2.51
  • P/E: 19
  • Future EPS Calc: $2.9
  • Future Stock Price Calc: $55.28
  • Target stock price: $34.32

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I hope that this makes you a Confident Investor.

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