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

Company name MeadWestvaco Corp.
Stock ticker MWV
Live stock price [stckqut]MWV[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $56.8
Target stock price (averages with growth) $67.22
Target stock price (averages with no growth) $52.6
Target stock price (manual assumptions) $49.73

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

MeadWestvaco Corporation (MWV) is a global packaging company providing solutions to the healthcare, beauty and personal care, food, beverage, home and garden, tobacco, and agricultural industries. The Company also produces specialty chemicals for the automotive, energy, and infrastructure industries and maximizes the value of its land holdings through forestry operations, property development and land sales. MWV’s reporting segments are Food & Beverage; Industrial; Specialty Chemicals, and Community Development and Land Management. On December 11, 2012, MWV acquired the remaining 50% interest in Resitec Industria Quimica, Ltda. In December 2013, Meadwestvaco Corp completed the sale of U.S. forestlands to Plum Creek Timber Company. In June, 2014, ASG acquired the Bydgoszcz, Poland-based beauty and personal care folding carton business of MeadWestvaco Corporation.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in MeadWestvaco Corp. as long as the price is correct. 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 MeadWestvaco 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: $43.61
  • Growth: 0.13
  • Current EPS (TTM): $1.89
  • P/E: 23
  • Future EPS Calc: $3.48
  • Future Stock Price Calc: $80.09
  • Target stock price: $49.72

I hope that this makes you a better investor. [/s2If]