Fundamental Analysis
Cash Conversion Cycle Case Studies
I’ve talked a lot about net working capital in several of my posts. In fact, I used it in my post this Monday when trying to determine Apple’s distributable cash. For those that felt lost, I had once described this process in my post on how to analyze businesses in a recession. Upon looking over [...]
read more »Finding stocks with great management (part II)
In the first part of this series, I mentioned the importance of return on invested capital (ROIC) as a metric for how well a business’ management is allocating capital. Today, we’ll go through a few case studies for how ROIC can be used in your investment analysis. The three stocks I’ll use are Google (GOOG), [...]
read more »Looking past accounting tomfoolery
We hear it all the time, “Businesses are worth the net present value of future cash flows.” Usually a statement like this is followed by someone whipping out some convoluted discounted cash flow model. These models are usually based on free cash flow which is nearly always significantly different from the earnings or net income number reported [...]
read more »The Safest Dow Dividend Stocks
After reading a bit on the Dogs of the Dow theory and doing a little research of my own on large cap returns, I seem to have convinced myself of the opportunity that may lie within U.S. large caps at the moment. Never in the last ten years do I think we’ve had the opportunity to [...]
read more »An Analysis of PEG (Part 2/2)
To get a better understanding of the PEG ratio, we should look at the underlying factors in evaluating price-to-earnings and growth. To do this, we will start by making some assumptions. These assumptions may not be entirely representative of real life, but they will help to provide a baseline for the analysis and give some [...]
read more »Price Earnings to Growth by the Numbers (Part 1 of 2)
The Price Earnings to Growth ratio is often relegated to “rule of thumb” status and doesn’t get much press despite that fact that it combines two of a stock’s most important fundamental attributes – the price to earnings ratio and forecasted earnings growth. One main issue with this metric is the fact that it is [...]
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