By:
On:
In: Fair company, Stock analysis
Tagged:
With: 0 Comments

Company name Middleby Corp
Stock ticker MIDD
Live stock price [stckqut]MIDD[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $76.31
Target stock price (averages with growth) $86.09
Target stock price (averages with no growth) $80.24
Target stock price (manual assumptions) $90.57

The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/midd

The Middleby Corporation (Middleby), incorporated on March 12, 1985, is engaged in the design, manufacture and sale of commercial foodservice, food processing equipment and residential kitchen equipment. The Company operates in three segments: the Commercial Foodservice Equipment Group, the Food Processing Equipment Group and the Residential Kitchen Equipment Group. The Company is also engaged in the design, manufacture, marketing, distribution and service of a range of foodservice equipment used in commercial restaurants and institutional kitchens; food preparation, cooking, baking, chilling and packaging equipment for food processing operations, and kitchen equipment, including ranges, ovens, refrigerators, ventilation and dishwashers used in the residential market. The Company’s subsidiary is Middleby Marshall Inc. The Company manufactured and assembled the equipment at 28 facilities in the United States, and 23 international manufacturing facilities as of December 31, 2016.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Middleby Corp as long as the price is correct and the indicators that I describe in my book The Confident Investor are favorable. Most of the fundamentals of this company are good but there are some concerns.

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 Middleby Corp 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.
[s2If current_user_can(access_s2member_level1)]

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: $103.21
  • Growth: 0.07
  • Current EPS (TTM): $5.2
  • P/E: 20
  • Future EPS Calc: $7.29
  • Future Stock Price Calc: $145.86
  • Target stock price: $90.57

[/s2If]
I hope that this makes you a Confident Investor.

By:
On:
In: Fair company, Stock analysis
Tagged:
With: 0 Comments

Company name Methode Electronics Inc.
Stock ticker MEI
Live stock price [stckqut]MEI[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $38.18
Target stock price (averages with growth) $52.28
Target stock price (averages with no growth) $44.01
Target stock price (manual assumptions) $42.11

The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/mei

Methode Electronics, Inc. (Methode), incorporated on April 27, 1966, is a manufacturer of component and subsystem devices. The Company designs, manufactures and markets devices employing electrical, radio remote control, electronic, wireless and sensing technologies. The Company operates through segments, including Automotive, Interface, Power Products and Other. The Company has manufacturing, design and testing facilities in China, Egypt, Germany, India, Italy, Lebanon, Malta, Mexico, Singapore, Switzerland, the United Kingdom and the United States. The Company’s components are found in end markets of the aerospace, appliance, automotive, battery storage, construction, consumer and industrial equipment, communications (including information processing and storage, medical device, networking equipment, wireless and terrestrial voice/data systems), rail and other transportation industries.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Methode Electronics Inc. as long as the price is correct and the indicators that I describe in my book The Confident Investor are favorable. Most of the fundamentals of this company are good but there are some concerns.

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 Methode Electronics Inc. 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.
[s2If current_user_can(access_s2member_level1)]

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: $40.5
  • Growth: 0.12
  • Current EPS (TTM): $2.96
  • P/E: 13
  • Future EPS Calc: $5.21
  • Future Stock Price Calc: $67.81
  • Target stock price: $42.1

[/s2If]
I hope that this makes you a Confident Investor.

By:
On:
In: Poor company, Stock analysis
Tagged:
With: 0 Comments

Company name McKesson Corporation
Stock ticker MCK
Live stock price [stckqut]MCK[/stckqut]
Confident Investor Rating Poor

The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/mck

McKesson Corporation, incorporated on July 7, 1994, is a healthcare supply chain management solutions, retail pharmacy, community oncology and specialty care, and healthcare information technology company. The Company provides medicines, medical products, and healthcare services by partnering with pharmaceutical manufacturers, providers, pharmacies, governments and other organizations in healthcare. It operates in two segments: McKesson Distribution Solutions and McKesson Technology Solutions.

Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in McKesson Corporation. It is not possible to confidently invest in a company that is not currently profitable. I am removing this company 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.

By:
On:
In: Fair company, Stock analysis
Tagged:
With: 0 Comments

Company name Lululemon Athletica inc.
Stock ticker LULU
Live stock price [stckqut]LULU[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $187.74
Target stock price (averages with growth) $257.66
Target stock price (averages with no growth) $177.43
Target stock price (manual assumptions) $49.32

The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/lulu

lululemon athletica inc., incorporated on November 21, 2005, is a designer, distributor, and retailer of athletic apparel. The Company operates through two segments: Company-operated stores and Direct to the consumer. The Company is also engaged in the sale from outlets, showrooms, sales from temporary locations, sales to wholesale accounts, warehouse sales, and license and supply arrangements. As of January 29, 2017, the Company had operated 406 stores located in the United States, Canada, Australia, the United Kingdom, New Zealand, China, Hong Kong, Singapore, South Korea, Germany, Puerto Rico and Switzerland. Its direct to consumer segment generates revenue from its lululemon and ivivva e-commerce websites, www.lululemon.com and www.ivivva.com, and other country and region-specific websites. The Company operates and distributes finished products from its owned or leased distribution facilities in the United States, Canada, and Australia. The Company owns its distribution center in Columbus, Ohio, and leases its other distribution facilities.

The Company offers a range of apparel and accessories for women, men and female youth. Its apparel assortment includes items, such as pants, shorts, tops, and jackets designed for healthy lifestyle and athletic activities, such as yoga, running, training, most other sweaty pursuits, and athletic wear for female youth. It also offers fitness-related accessories, including an array of items, such as bags, socks, underwear, yoga mats and water bottles. Most of its Company-operated stores are branded lululemon, 55 of its Company-operated stores are branded ivivva and specialize in athletic wear for female youth. Its retail stores are located primarily in street locations, in lifestyle centers, and in malls.

The Company competes with Nike, Inc., adidas AG, Under Armour, Inc., The Gap, Inc. and L Brands, Inc.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Lululemon Athletica inc. as long as the price is correct and the indicators that I describe in my book The Confident Investor are favorable. Most of the fundamentals of this company are good but there are some concerns.

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 Lululemon Athletica inc. 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.
[s2If current_user_can(access_s2member_level1)]

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: $125.31
  • Growth: 0.2
  • Current EPS (TTM): $2.66
  • P/E: 12
  • Future EPS Calc: $6.61
  • Future Stock Price Calc: $79.42
  • Target stock price: $49.31

[/s2If]
I hope that this makes you a Confident Investor.

By:
On:
In: Good company, Stock analysis
Tagged:
With: 0 Comments

Company name Lam Research Corporation
Stock ticker LRCX
Live stock price [stckqut]LRCX[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $264.96
Target stock price (averages with growth) $390.07
Target stock price (averages with no growth) $264.96
Target stock price (manual assumptions) $271.99

The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/lrcx

Lam Research Corporation, incorporated on October 8, 1989, is a supplier of wafer fabrication equipment and services to the semiconductor industry. The Company designs, manufactures, markets, refurbishes, and services semiconductor processing systems that are used in the fabrication of integrated circuits (ICs). The Company operates through manufacturing and servicing of wafer processing semiconductor manufacturing equipment segment. The Company’s products are designed to enable its customers to build a range of devices that are used in a range of electronic products, including cell phones, tablets, computers, storage devices and networking equipment. The Company’s customer base includes semiconductor memory, foundry and integrated device manufacturers (IDMs) that make products, such as dynamic random-access memory (DRAM), negative-AND (NAND) memory and logic devices. The Company offers a portfolio of products that are used in several areas of the semiconductor manufacturing process flow, including thin film deposition, plasma etch and single-wafer clean. The Company also offers a range of services, including customer service, spares, upgrades, and refurbishment of its deposition, etch and clean products. The Company also provides refurbished legacy products.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Lam Research Corporation as long as the indicators that I describe in my book The Confident Investor are favorable.

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 Lam Research 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.
[s2If current_user_can(access_s2member_level1)]

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: $171.8
  • Growth: 0.2
  • Current EPS (TTM): $14.67
  • P/E: 12
  • Future EPS Calc: $36.5
  • Future Stock Price Calc: $438.04
  • Target stock price: $271.99

[/s2If]
I hope that this makes you a Confident Investor.