Return on Invested Capital – As Travel OFFL http://astraveloffl.com/ Mon, 21 Jun 2021 20:28:56 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.2 https://astraveloffl.com/wp-content/uploads/2021/04/cropped-icon-32x32.png Return on Invested Capital – As Travel OFFL http://astraveloffl.com/ 32 32 Power REIT Expands Presence in Colorado Cannabis Cultivation https://astraveloffl.com/power-reit-expands-presence-in-colorado-cannabis-cultivation/ https://astraveloffl.com/power-reit-expands-presence-in-colorado-cannabis-cultivation/#respond Mon, 21 Jun 2021 18:51:00 +0000 https://astraveloffl.com/power-reit-expands-presence-in-colorado-cannabis-cultivation/ Through a subsidiary, it acquired a 10-acre property in Crowley County that includes the construction of a 12,000 square foot greenhouse and 12,880 square feet of support buildings and infrastructure. (NYSEAMERICAN: PW) acquired a 10-acre property in Crowley County, Colorado, through its wholly owned subsidiary (PropCo). The company said the property will include the construction […]]]>


Through a subsidiary, it acquired a 10-acre property in Crowley County that includes the construction of a 12,000 square foot greenhouse and 12,880 square feet of support buildings and infrastructure.

(NYSEAMERICAN: PW) acquired a 10-acre property in Crowley County, Colorado, through its wholly owned subsidiary (PropCo).

The company said the property will include the construction of a 12,000 square foot greenhouse and 12,880 square feet (square feet) of support buildings and infrastructure that Power REIT will fund for a total capital commitment of approximately $ 2.9 million.

Power REIT said it has strategically located greenhouse investments in southern Colorado with more than 83 acres comprising 383,328 square feet of environmentally controlled agricultural facilities (CEA) in the form of greenhouses. This entire portfolio is currently leased to operators licensed for the cultivation of regulated cannabis on properties.

READ: Power REIT acquires Oklahoma greenhouse facility and property for $ 2.65 million

Along with the acquisition, Power REIT said PropCo has entered into a 20-year “triple net” lease with JKL2 Inc, which will operate the property as a cannabis cultivation facility.

The lease requires JKL2 to pay all expenses related to the property, including maintenance, insurance and taxes. After the initial 20-year term, the lease provides for two five-year renewal options and includes personal guarantees from the owners of JKL2. Additionally, JKL2 will retain a medical marijuana license and operate in accordance with all Colorado and city regulations. The lease also prohibits the retail sale of cannabis on the property.

After an initial period of deferred rent to allow for construction, the company said the lease stipulates rent payments that provide PropCo with a full return on its invested capital over the next 36 months and provide a return of around 13%. thereafter increasing at a rate of 3% per annum. The lease provides for a straight-line annual rent of approximately $ 546,000, which represents a non-leveraged FFO (Operating Fund) return of approximately 18.8% on invested capital.

“This transaction is done with an established trader and provides additional portfolio risk diversification,” Power REIT CEO David Lesser said in a statement. “We continue to deploy capital at what we believe to be attractive risk-adjusted returns that benefit from the favorable economic and regulatory environments for growing cannabis in Crowley County, Colorado.”

Deploy capital

Meanwhile, Power REIT said it announced deals that deploy around $ 19.5 million in capital from its recently closed rights offering to multiple deals. The Colorado deal leaves around $ 17 million to deploy.

Power REIT’s current annual core FFO run rate is approximately $ 8.25 million and the company added that it estimates an annual core FFO forward run rate per share of 3. $ 26.

“We continue to invest at very attractive returns compared to traditional commercial real estate asset classes,” Lesser said.

“We also believe that we can continue to grow through acquisitions using non-dilutive capital. Given our small size, these transactions generate significant growth in Core FFO per share. Additionally, Power REIT is currently trading at a relatively low multiple and as such Power REIT represents both a value game and a growth game that is difficult to find in today’s investment climate.

Contact the author: patrick@proactiveinvestors.com

Follow him on Twitter @PatrickMGraham



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B&M European Value Retail (LON: BME) knows how to allocate capital efficiently https://astraveloffl.com/bm-european-value-retail-lon-bme-knows-how-to-allocate-capital-efficiently/ https://astraveloffl.com/bm-european-value-retail-lon-bme-knows-how-to-allocate-capital-efficiently/#respond Mon, 21 Jun 2021 05:12:15 +0000 https://astraveloffl.com/bm-european-value-retail-lon-bme-knows-how-to-allocate-capital-efficiently/ If we are to find a title that could multiply over the long term, what are the underlying trends to look for? Generally, we will want to notice a growing trend return on capital employed (ROCE) and at the same time, a based capital employed. Put simply, these types of businesses are dialing machines, which […]]]>


If we are to find a title that could multiply over the long term, what are the underlying trends to look for? Generally, we will want to notice a growing trend return on capital employed (ROCE) and at the same time, a based capital employed. Put simply, these types of businesses are dialing machines, which means they continually reinvest their profits at ever higher rates of return. With this in mind, the ROCE of B&M European Value Retail (LON: BME) looks great, so let’s see what the trend can tell us.

Understanding Return on Capital Employed (ROCE)

Just to clarify if you’re not sure, ROCE is a measure of the pre-tax income (as a percentage) that a business earns on the capital invested in its business. Analysts use this formula to calculate it for B&M European Value Retail:

Return on capital employed = Profit before interest and taxes (EBIT) ÷ (Total assets – Current liabilities)

0.23 = £ 607 million (£ 3.4 billion – £ 731 million) (Based on the last twelve months up to March 2021).

So, B&M European Value Retail has a ROCE of 23%. This in itself is a very good return and it is comparable to the returns obtained by companies in a similar industry.

Check out our latest analysis for B&M European Value Retail

LSE: BME Return on Capital Employee June 21, 2021

In the chart above, we’ve measured B&M European Value Retail’s past ROCE against its past performance, but the future is arguably more important. If you’d like to see what analysts are forecasting for the future, you should check out our free report for B&M European Value Retail.

What can we say about the ROCE trend of B&M European Value Retail?

Investors would be delighted with what is happening at B&M European Value Retail. Data shows that returns on capital have increased dramatically over the past five years to reach 23%. The company actually makes more money per dollar of capital employed, and it should be noted that the amount of capital has also increased, by 94%. This may indicate that there are many opportunities to invest capital in-house and at ever higher rates, a common combination among multi-baggers.

B&M European Value Retail ROCE result

In summary, it’s great to see that B&M European Value Retail can increase returns by systematically reinvesting capital at increasing rates of return, as these are some of the key ingredients in these highly sought-after multi-baggers. Given that the stock has returned 164% to shareholders over the past five years, it looks like investors are recognizing these changes. Therefore, we believe it would be worth checking out whether these trends will continue.

If you want to know more about B&M European Value Retail, we have spotted 3 warning signs, and 1 of them is a bit rude.

If you want to look for other stocks that have generated high returns, check out this free list of stocks with strong balance sheets that also generate high returns on equity.

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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St does not have any position in the mentioned stocks.
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Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.



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Monster Beverage Stock Is Esti https://astraveloffl.com/monster-beverage-stock-is-esti/ https://astraveloffl.com/monster-beverage-stock-is-esti/#respond Fri, 18 Jun 2021 22:01:58 +0000 https://astraveloffl.com/monster-beverage-stock-is-esti/ Monster Beverage stock (NAS: MNST, 30 year financials) gives all indications of a fair valuation, according to the GuruFocus value calculation. The GuruFocus Value is GuruFocus’s estimate of the fair value at which the stock is to trade. It is calculated based on the historical multiples at which the stock has traded, the company’s past […]]]>


Monster Beverage stock (NAS: MNST, 30 year financials) gives all indications of a fair valuation, according to the GuruFocus value calculation. The GuruFocus Value is GuruFocus’s estimate of the fair value at which the stock is to trade. It is calculated based on the historical multiples at which the stock has traded, the company’s past growth, and analysts’ estimates of the company’s future performance. If a stock’s price is significantly above the GF value line, it is overvalued and its future performance is likely to be poor. On the other hand, if it is significantly below the GF value line, its future return is likely to be higher. At its current price of $ 91.76 per share and market cap of $ 48.5 billion, Monster Beverage stock gives every indication of fair value. The GF value for Monster Beverage is shown in the table below.

Given that Monster Beverage is valued at its fair value, the long-term return on its shares is expected to be close to the growth rate of its business, which has averaged 13.8% over the past three years and is expected to grow. by 11.47% per year over the next three years. five years.

Link: These companies can offer higher future returns with reduced risk.

Companies with poor financial strength present investors with a high risk of permanent capital loss. To avoid a permanent loss of capital, an investor should do his research and consider the financial strength of a company before deciding to buy stocks. Both cash-to-debt ratio and covering a company’s interests are a great way to understand its financial strength. Monster Beverage has a cash-to-debt ratio of 1,000.00, which ranks better than 99% of companies in the non-alcoholic beverage industry. The overall financial strength of Monster Beverage is 9 out of 10, indicating that the financial strength of Monster Beverage is strong. Here is Monster Beverage’s debt and cash flow over the past few years:

1406008882941222912.png

Companies that have historically been profitable over the long term pose less risk to investors who want to buy stocks. Higher profit margins usually dictate a better investment compared to a business with lower profit margins. Monster Beverage has been profitable 10 in the past 10 years. In the past twelve months, the company reported sales of $ 4.8 billion and earnings of $ 2.71 per share. His the operating margin is 35.19%, which ranks better than 98% of companies in the Beverage – Non-Alcoholic industry. Overall, Monster Beverage’s profitability is ranked 10 out of 10, indicating strong profitability. Here is Monster Beverage’s sales and net income for the past few years:

1406008886548324352.png

Growth is probably one of the most important factors in the valuation of a business. GuruFocus research has shown that growth is closely tied to the long-term performance of a company’s stocks. If a company’s business is growing, the business typically creates value for its shareholders, especially if the growth is profitable. Likewise, if a business’s income and profits decline, the value of the business will decline. Monster Beverage’s 3-year average revenue growth rate is over 83% for companies in the soft drink industry. Monster Beverage’s 3-year average EBITDA growth rate is 13.6%, which ranks better than 71% of companies in the non-alcoholic beverage industry.

Another method of determining a company’s profitability is to compare its return on invested capital to the weighted average cost of capital. Return on invested capital (ROIC) The extent to which a business generates cash flow relative to the capital it has invested in its business. The weighted average cost of capital (WACC) is the rate that a company should pay, on average, to all of its security holders to finance its assets. When the ROIC is higher than the WACC, it implies that the company creates value for the shareholders. Over the past 12 months, Monster Beverage’s return on invested capital is 40.01 and its cost of capital is 8.24. Monster Beverage’s historic ROIC vs WACC comparison is shown below:

In conclusion, the action of Monster Beverage (NAS: MNST, 30-year Financials) gives all indications of a fair valuation. The company’s financial position is strong and its profitability is solid. Its growth ranks better than 71% of companies in the Non-Alcoholic Beverage industry. To learn more about the Monster Beverage stock, you can view its 30-year financial data here.

To find out about high-quality companies that can deliver above-average returns, please see GuruFocus High Quality Low Capex Screener.



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Best Buy Co Stock gives every https://astraveloffl.com/best-buy-co-stock-gives-every/ https://astraveloffl.com/best-buy-co-stock-gives-every/#respond Fri, 18 Jun 2021 19:01:55 +0000 https://astraveloffl.com/best-buy-co-stock-gives-every/ Best Buy Co (NYSE: BBY, 30 Financials) stock is showing all signs of a fair valuation, according to GuruFocus Value’s calculation. The GuruFocus Value is GuruFocus’s estimate of the fair value at which the stock is to trade. It is calculated based on the historical multiples at which the stock has traded, the company’s past […]]]>


Best Buy Co (NYSE: BBY, 30 Financials) stock is showing all signs of a fair valuation, according to GuruFocus Value’s calculation. The GuruFocus Value is GuruFocus’s estimate of the fair value at which the stock is to trade. It is calculated based on the historical multiples at which the stock has traded, the company’s past growth, and analysts’ estimates of the company’s future performance. If a stock’s price is significantly above the GF value line, it is overvalued and its future performance is likely to be poor. On the other hand, if it is significantly below the GF value line, its future return is likely to be higher. At its current price of $ 108.11 per share and market cap of $ 27.1 billion, Best Buy Co stock appears to be priced correctly. The GF value for Best Buy Co is shown in the table below.

Since Best Buy Co is fair valued, its long-term stock return is likely to be close to the growth rate of its business, which has averaged 9.4% over the past three years. years and is expected to grow by 0.74% per year over the next three years. at five years.

Link: These companies can offer higher future returns with reduced risk.

Since investing in companies with poor financial strength could result in a permanent loss of capital, investors should carefully consider the financial strength of a company before deciding whether or not to buy shares. Examining the cash-to-debt ratio and interest coverage can provide a good initial perspective on the financial strength of the business. Best Buy Co has a cash-to-debt ratio of 1.09, which ranks in the mid-range of companies in the Retail – Cyclic industry. Based on this, GuruFocus ranks Best Buy Co’s financial strength at 7 out of 10, which suggests a fair track record. Here is Best Buy Co’s debt and cash flow over the past several years:

1405963573523472384.png

Investing in profitable businesses carries less risk, especially in companies that have demonstrated consistent profitability over the long term. Typically, a business with high profit margins offers better performance potential than a business with low profit margins. Best Buy Co has been profitable 9 years in the past 10 years. In the past 12 months, the company achieved sales of $ 50.3 billion and earnings of $ 8.55 per share. Its operating margin of 6.24% in the mid-range of companies in the Retail – Cyclical industry. Overall, GuruFocus rates Best Buy Co’s profitability as fair. Here is Best Buy Co’s sales and net income for the past few years:

1405963577424175104.png

One of the most important factors in the valuation of a business is growth. Long-term equity performance is closely linked to growth, according to GuruFocus research. Companies that grow faster create more shareholder value, especially if that growth is profitable. Best Buy Co’s average annual revenue growth is 9.4%, which ranks better than 77% of companies in the retail industry – cyclical. The average EBITDA growth over 3 years is 14%, which is in line with the average for companies in the Retail – Cyclical industry.

A company’s profitability can also be assessed by comparing its return on invested capital (ROIC) to its weighted average cost of capital (WACC). Return on invested capital (ROIC) The extent to which a business generates cash flow relative to the capital it has invested in its business. The weighted average cost of capital (WACC) is the rate that a company should pay, on average, to all of its security holders to finance its assets. If the return on invested capital exceeds the weighted average cost of capital, the company is likely to create value for its shareholders. In the past 12 months, Best Buy Co’s ROIC is 25.59 while its WACC is 9.94. Best Buy Co’s historical ROIC vs WACC comparison is shown below:

1405963581614284800.png

In conclusion, the share of Best Buy Co (NYSE: BBY, 30 years Financials) is estimated at its fair value. The company’s financial position is fair and its profitability is fair. Its growth is in the mid-range of companies in the Retail – Cyclical industry. To learn more about Best Buy Co’s stocks, you can view its 30-year financial data here.

To find out about high-quality companies that can deliver above-average returns, please see GuruFocus High Quality Low Capex Screener.



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Himax Technologies Stock Appea – GuruFocus.com https://astraveloffl.com/himax-technologies-stock-appea-gurufocus-com/ https://astraveloffl.com/himax-technologies-stock-appea-gurufocus-com/#respond Wed, 16 Jun 2021 16:00:58 +0000 https://astraveloffl.com/himax-technologies-stock-appea-gurufocus-com/ Himax Technologies (NAS: HIMX, 30-year-old Financials) stock is showing all signs of significant overvaluation, according to the GuruFocus stock calculation. The GuruFocus Value is GuruFocus’s estimate of the fair value at which the stock is to trade. It is calculated based on the historical multiples at which the stock has traded, the company’s past growth, […]]]>


Himax Technologies (NAS: HIMX, 30-year-old Financials) stock is showing all signs of significant overvaluation, according to the GuruFocus stock calculation. The GuruFocus Value is GuruFocus’s estimate of the fair value at which the stock is to trade. It is calculated based on the historical multiples at which the stock has traded, the company’s past growth, and analysts’ estimates of the company’s future performance. If a stock’s price is significantly above the GF value line, it is overvalued and its future performance may be poor. On the other hand, if it is significantly below the GF value line, its future return is likely to be higher. At its current price of $ 13.78 per share and market cap of $ 2.4 billion, Himax Technologies stock gives any indication of being significantly overvalued. The GF value for Himax Technologies is shown in the table below.

Because Himax Technologies is significantly overvalued, its long-term stock return is likely to be much lower than the future growth of its business, which has averaged 8.8% over the past five years.

Link: These companies can offer higher future returns with reduced risk.

Since investing in companies with poor financial strength could result in a permanent loss of capital, investors should carefully consider the financial strength of a company before deciding whether or not to buy shares. Examining the cash-to-debt ratio and interest coverage can provide a good initial perspective on the financial strength of the business. Himax Technologies has a cash-to-debt ratio of 1.53, which ranks in the average for companies in the semiconductor industry. Based on this, GuruFocus ranks Himax Technologies’ financial strength at 7 out of 10, which suggests a fair track record. Here is Himax Technologies’ debt and cash flow over the past few years:

1405193500437340160.png

Companies that have historically been profitable over the long term pose less risk to investors who want to buy stocks. Higher profit margins usually dictate a better investment compared to a business with lower profit margins. Himax Technologies has been profitable 9 in the past 10 years. In the past twelve months, the company reported sales of $ 1 billion and earnings of $ 0.635 per share. His the operating margin is 13.65%, which ranks better than 68% of companies in the semiconductor industry. Overall, Himax Technologies’ profitability is ranked 6 out of 10, indicating acceptable profitability. Here is Himax Technologies’ revenue and bottom line for the past few years:

1405193504317071360.png

One of the most important factors in the valuation of a business is growth. Long-term equity performance is closely linked to growth, according to GuruFocus research. Companies that grow faster create more shareholder value, especially if that growth is profitable. Himax Technologies’ average annual revenue growth of 8.8%, which ranks better than 67% of companies in the semiconductor industry. The 3-year average EBITDA growth is 19.8%, which ranks better than 66% of companies in the semiconductor industry.

Another way to assess a company’s profitability is to compare its return on invested capital (ROIC) to its weighted cost of capital (WACC). Return on invested capital (ROIC) The extent to which a business generates cash flow relative to the capital it has invested in its business. The weighted average cost of capital (WACC) is the rate that a company should pay on average to all its security holders to finance its assets. If the ROIC is higher than the WACC, it indicates that the company is creating shareholder value. Over the past 12 months, Himax Technologies’ ROIC was 20.00, while its WACC was 12.20. The historical ROIC vs WACC comparison of Himax technologies is shown below:

1405193507999670272.png

Overall, Himax Technologies (NAS: HIMX, 30-year-old Financials) stock is estimated to be significantly overvalued. The company’s financial position is fair and its profitability is fair. Its growth ranks better than 66% of companies in the semiconductor industry. To learn more about Himax Technologies stock, you can view its 30-year financial data here.

To find out about high-quality companies that can deliver above-average returns, please check out GuruFocus High Quality Low Capex Screener.



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Atlas Holding Gro by Prem Watsa https://astraveloffl.com/atlas-holding-gro-by-prem-watsa/ https://astraveloffl.com/atlas-holding-gro-by-prem-watsa/#respond Tue, 15 Jun 2021 19:16:10 +0000 https://astraveloffl.com/atlas-holding-gro-by-prem-watsa/ Prem Watsa (Trades, Portfolio) Fairfax Financial Holdings has revealed an addition to its Atlas Corp. (ATCO, Financial) according to GuruFocus real-time selections, a Premium feature. Founded by Watsa in 1985, Fairfax’s corporate goal is to achieve a high rate of return on invested capital and create long-term shareholder value. Fairfax seeks to differentiate itself by […]]]>


Prem Watsa (Trades, Portfolio) Fairfax Financial Holdings has revealed an addition to its Atlas Corp. (ATCO, Financial) according to GuruFocus real-time selections, a Premium feature.

Founded by Watsa in 1985, Fairfax’s corporate goal is to achieve a high rate of return on invested capital and create long-term shareholder value. Fairfax seeks to differentiate itself by combining disciplined underwriting with investing its assets on a total return basis, which Fairfax believes provides above-average returns over the long term.

On June 11, the company’s largest participation, Atlas (ATCO, Financial), increased 31.86% with the addition of 31.79 million shares. Atlas announced on June 14 that it had entered into an exchange and modification of a total principal amount of $ 600 million of senior notes from Seaspan Corp., its wholly owned subsidiary. The changes included $ 250 million 5.5% notes due 2025, $ 250 million 5.5% senior notes due 2026 and $ 100 million 5.5% senior notes maturing in 2027, referred to as the Fairfax Notes. These Fairfax notes are held by subsidiaries of Fairfax Financial Holdings, according to the company’s press release.

On trade day, Atlas shares were trading at an average price of $ 13.97 per share. GuruFocus estimates that the company gained 30.48% on the established holding company in the third quarter of 2018. Overall, the new addition had an impact of 13.42% on the equity portfolio.

“Fairfax Financial has been a committed and strategic sponsor of the growth and transformation of Atlas, Seaspan and APR Energy for which our team is grateful, and our shareholders have benefited. Today’s announcement reflects the both a strong and ongoing partnership as well as the significant progress made by Atlas over the past three years. As we continue to generate quality growth and strengthen our competitiveness, we have now simplified our balance sheet with more flexibility in our structure capital to pursue attractive opportunities and sustainable value creation, ”said Atlas President and CEO Bing. Chen said.

As of June 15, Atlas stock was trading at $ 13.81 per share with a market cap of $ 3.41 billion. According to the GF Value Line, the stock is trading at a significantly overvalued rating.

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GuruFocus gives the company a financial strength rating of 3 out of 10, a profitability rating of 6 out of 10, and a review rating of 6 out of 10. There are currently four serious warning signs for the company, including poor financial strength and an Altman Z-Score of 0.62 putting the company at a higher risk of bankruptcy. The company’s cash-to-debt ratio of 0.06 ranks it well below the majority of the asset management industry.

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Watsa’s Fairfax is by far the largest shareholder with 53.32% of the shares outstanding. Other major shareholders include

Capital Research Global Investors (professions, portfolio),

Dimensional Fund Advisors LP (trades, portfolio) and

Morgan stanley (trades, portfolio).

Portfolio overview

The company’s portfolio contains 57 stocks, with eight new holdings in the first quarter. It is valued at $ 2.87 billion and has seen a 2% turnover rate. Major holdings include Atlas, BlackBerry Ltd. (BB, Financial), Resolute Forest Products Inc. (Call for tenders, Financial), Kennedy-Wilson Holdings Inc. (KW, Financial) and Crescent Capital BDC Inc. (CCAP, Financial).

1404871938949603328.png

By weight, the three main sectors represented are financial services (51.57%), technology (16.28%) and basic materials (11.73%).

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Also check out:



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Finning hosts investor day and provides growth opportunities https://astraveloffl.com/finning-hosts-investor-day-and-provides-growth-opportunities/ https://astraveloffl.com/finning-hosts-investor-day-and-provides-growth-opportunities/#respond Sun, 13 Jun 2021 20:02:55 +0000 https://astraveloffl.com/finning-hosts-investor-day-and-provides-growth-opportunities/ Enter Wall Street with StreetInsider Premium. Claim your 1-week free trial here. VANCOUVER, British Columbia, June 13, 2021 (GLOBE NEWSWIRE) – Finning International Inc. (TSX: FTT) (“Finning”, “the Company”, “we”, “us” or “our”) is hosting a investors on June 14 from 11:00 a.m. Eastern Time. Following presentations from members of our management team, attendees will […]]]>



Enter Wall Street with StreetInsider Premium. Claim your 1-week free trial here.


VANCOUVER, British Columbia, June 13, 2021 (GLOBE NEWSWIRE) – Finning International Inc. (TSX: FTT) (“Finning”, “the Company”, “we”, “us” or “our”) is hosting a investors on June 14 from 11:00 a.m. Eastern Time. Following presentations from members of our management team, attendees will have the opportunity to ask questions using the webcast portal.

“We continue to execute on our global strategic priorities designed to improve our return on invested capital and ultimately increase our earning capacity. Robust execution through 2020 put us back on track to achieve a strong ROI in line with our 2018 Investor Day goals, albeit a year later. Significant improvements in ROI in all three regions will be increasingly evident from our second quarter 2021 results, as the improvement in market activity that we had forecast for the second half of 2021 has started to show. , and we see a strong recovery in revenues and results in the second quarter. Said Scott Thomson, President and CEO of Finning International.

“We have built a solid foundation for growth and put in place a simple plan to increase our return on invested capital while exceeding our previous peaks in earnings per share. As our markets recover to mid-cycle levels and are expected to move to a sustained up-cycle, our strategy is to drive product support revenue growth, further reduce our costs, and reinvest our free cash flow to compose our earnings per share.

“Over the medium term, we expect our consolidated product support revenues to grow at an average annual rate of between 5 and 9% from 2021 levels, assuming a sustained bull market cycle. Key drivers of growth in our product support revenues include market share gains in construction, increased copper production in Chile, stability of the tar sands and associated reconstructions, and growth of our digital performance solutions. We are excited to launch our CUBIQ Performance Solutions ™ platform, a new brand and marketplace for Finning’s digital services This unified digital platform enables our customers to better leverage data and performance solutions to improve productivity , costs, safety and environmental performance.

“As our revenues recover from 2020 levels, we continue to reduce our costs by increasing the productivity of the workforce and facilities and by optimizing our supply chain processes. a percentage of net sales was 18.5% from March to May 2021. We will continue to implement incremental initiatives to reduce fixed costs by an additional $ 50 million over 2021 and 2022 as we target 17% general and administrative expenses as a percentage of mid-cycle net sales.

“Our goal is to proactively manage our business throughout the cycle to grow and increase our profits at each successive mid-cycle point. We expect our next annual mid-cycle net sales to be between $ 7.1 billion and $ 7.5 billion from the third quarter of 2021 to the second quarter. 2022 and we expect to achieve EPS greater than $ 2.00 per share and a consolidated ROI greater than 15%. Beyond the upcoming mid-cycle, in a sustained bullish cycle scenario, we expect compound earnings growth potential of mid-teens and above.

“With strong market momentum underway, we are excited about our next phase of growth and our profit potential going forward. Our management team is ready to take our execution to the next level and we are very happy to present our plan to you on our Investor Day 2021, ”concluded Mr. Thomson.

To participate in our Investor Day 2021, please register for the webcast at Fining 2021 Investor Day

You can also access the event by dialing one of the following numbers: Toll free in Canada and the United States: (833) 227-5839 International: (647) 689-4543 Conference ID: 6047706

Investor Day presentations will be posted on our website and will be webcast live. The webcast and accompanying presentations will be archived on our website after the event.

Finning is the world’s largest Caterpillar equipment dealer, providing unmatched service to customers for nearly 90 years. Finning sells, rents and supplies parts and services for equipment and engines to help customers maximize productivity. Based in Vancouver, British Columbia, the Company operates in Western Canada, Chile, Argentina, Bolivia, United Kingdom and Ireland.

Contact information:

Investor Relations Amanda Hobson Senior Vice President, Investor Relations and Treasury (604) 331-4865 FinningIR@finning.com

www.finning.com

FORWARD-LOOKING INFORMATION CAUTION

This press release includes “forward-looking information” (as defined in applicable Canadian securities legislation) which is based on expectations, estimates and projections that we believe to be reasonable as of the date of this press release, but which may ultimately prove to be incorrect. . Forward-looking information contained in this press release includes the execution of our global strategic priorities to improve return on invested capital and increase our earning capacity; that we are back on track to achieve a strong ROI in line with our 2018 Investor Day goals, albeit one year later; that significant improvements in ROI in all three regions will be increasingly evident from our second quarter 2021 results and that we see a strong recovery in revenues and results in the second quarter; our plan to increase our return on invested capital and exceed our previous record earnings per share; our strategy to drive product support revenue growth, reduce costs and reinvest our free cash flow to compose our earnings per share; our expectation that in the medium term, our consolidated product support revenue will increase at an average annual rate of between 5 and 9% compared to 2021 levels, assuming a sustained bull cycle and supported by our share gains in market in construction, increasing copper production in Chile, stability of the tar sands and associated reconstructions, and the growth of our digital performance solutions; the operation and performance of the CUBIQ Performance Solutions ™ platform; our continued cost reduction by increasing labor and facility productivity and optimizing our supply chain processes; our expectation that additional initiatives will reduce our fixed costs by an additional $ 50 million over 2021 and 2022; our target of 17% general and administrative expenses as a percentage of mid-cycle net sales; our goal of proactively managing our business throughout the cycle to grow and compound our profits at each successive mid-cycle point; our expectation that our next annual mid-cycle net revenue will be between $ 7.1 billion and $ 7.5 billion from the third quarter of 2021 to the second quarter of 2022; our expectation of achieving EPS greater than $ 2.00 per share and consolidated ROI greater than 15% for this mid-cycle period; and, beyond the mid-cycle ahead, in a sustained bullish cycle scenario, our mid-teens expectation and above compound earnings growth potential. No assurance can be given that the information contained in this press release will result in sustained or improved financial or sustainability performance, and past performance is no guarantee of future results. This information has been provided to provide information about our current expectations and plans and is accurate at the time of this press release, but may be replaced by more recent information at a later date. Unless required by law, we assume no obligation to update information.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors, and is based on a number of assumptions that we believe are reasonable as of the date of this presentation, which may result in results, performance or achievements that are significantly different from future results, performance or achievements expressed or implied by forward-looking information. The assumptions on which the forward-looking information is based include, but are not limited to, the assumptions noted above and that: we will be able to execute our strategic plans, take advantage of growth opportunities, control our costs, ensure continued profitability in a market context, respond to the risks and opportunities associated with climate change and manage the impacts of COVID-19, and that markets will recover to mid-cycle levels and move into a sustained bull cycle , and that market dynamics will continue. Other important information identifying and describing these risks, uncertainties, assumptions and other factors are contained in our last filed annual information form (AIF) and in our most recent annual and quarterly management report on financial results (MD&A), which are available. on our site (www.finning.com) or under our profile on SEDAR (www.sedar.com).

We caution readers that the risks described in the Annual Information Form and MD&A are not the only risks that could impact the Company. We cannot accurately predict the total impact COVID-19 will have on our business, results of operations, financial condition, or demand for our services, in part due to uncertainties related to the ultimate geographic spread of the virus. , the severity of the disease, the duration of the outbreak, the actions our customers or suppliers may take under the current circumstances, including slowing or stopping operations, the duration of any travel and quarantine restrictions imposed by the governments of affected countries and other actions that may be taken by those governments to respond to the pandemic. Additional risks and uncertainties that are not currently known to us or which are currently considered immaterial may also have a material adverse effect on our business, financial condition or results of operations.

Source: Finning International Inc



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The shares of the HCI group are deemed to be https://astraveloffl.com/the-shares-of-the-hci-group-are-deemed-to-be/ https://astraveloffl.com/the-shares-of-the-hci-group-are-deemed-to-be/#respond Sun, 13 Jun 2021 01:01:35 +0000 https://astraveloffl.com/the-shares-of-the-hci-group-are-deemed-to-be/ HCI Group (NYSE: HCI, 30-year Financials) stock is showing all signs of significant overvaluation, according to GuruFocus Value’s calculation. The GuruFocus Value is GuruFocus’s estimate of the fair value at which the stock is to trade. It is calculated based on the historical multiples at which the stock has traded, past business growth, and analysts’ […]]]>


HCI Group (NYSE: HCI, 30-year Financials) stock is showing all signs of significant overvaluation, according to GuruFocus Value’s calculation. The GuruFocus Value is GuruFocus’s estimate of the fair value at which the stock is to trade. It is calculated based on the historical multiples at which the stock has traded, past business growth, and analysts’ estimates of future business performance. If a stock’s price is significantly above the GF value line, it is overvalued and its future performance may be poor. On the other hand, if it is significantly below the GF value line, its future return is likely to be higher. At its current price of $ 91 per share and a market cap of $ 772 million, HCI Group’s stock is showing all signs of significant overvaluation. The GF value for the HCI group is shown in the table below.

As the HCI group is significantly overvalued, the long-term return on its stock will likely be much lower than the future growth of its business.

Link: These companies can offer higher future returns with reduced risk.

Companies with poor financial strength present investors with a high risk of permanent capital loss. To avoid a permanent loss of capital, an investor should do his research and consider the financial strength of a company before deciding to buy stocks. Both cash-to-debt ratio and covering a company’s interests are a great way to understand its financial strength. HCI Group has a cash-to-debt ratio of 3.37, which ranks among the average for companies in the insurance industry. The overall financial strength of HCI group is 4 out of 10, which indicates that the financial strength of HCI group is low. Here is HCI Group’s debt and cash flow over the past few years:

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It is less risky to invest in profitable companies, especially those that have demonstrated consistent profitability over the long term. A business with high profit margins is also generally a safer investment than a business with low profit margins. The HCI Group has been profitable 9 in the past 10 years. In the past twelve months, the company achieved sales of $ 312.4 million and earnings of $ 3.88 per share. His operating margin is 0.00%, which ranks in the bottom 10% of companies in the insurance industry. Overall, GuruFocus ranks the profitability of the HCI group at 6 out of 10, which indicates fair profitability. Here is the turnover and net income of the HCI Group in recent years:

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Growth is probably the most important factor in the valuation of a business. GuruFocus research has shown that growth is closely tied to the long-term performance of a company’s stocks. The faster a business grows, the more likely it is to create shareholder value, especially if the growth is profitable. HCI Group’s 3-year average annual revenue growth rate is -0.3%, which is worse than 70% of companies in the insurance industry. The 3-year average EBITDA growth rate is 67.6%, which ranks better than 97% of companies in the insurance industry.

Another way to look at a company’s profitability is to compare its return on invested capital and the weighted cost of capital. Return on invested capital (ROIC) The extent to which a business generates cash flow relative to the capital it has invested in its business. The weighted average cost of capital (WACC) is the rate that a company should pay on average to all of its security holders to finance its assets. We want to have a return on invested capital greater than the weighted cost of capital. In the past 12 months, the return on invested capital of HCI Group is 8.72 and its cost of capital is 5.07. HCI Group’s historical ROIC vs WACC comparison is shown below:

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In conclusion, the stock of HCI Group (NYSE: HCI, 30 years Financials) seems to be significantly overvalued. The company’s financial situation is bad and its profitability is fair. Its growth ranks better than 97% of companies in the insurance industry. To learn more about HCI Group stocks, you can view its 30-year financial data here.

To find out about high-quality companies that can deliver above-average returns, please see GuruFocus High Quality Low Capex Screener.



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AgroFresh Solutions Equity Fair – GuruFocus.com https://astraveloffl.com/agrofresh-solutions-equity-fair-gurufocus-com/ https://astraveloffl.com/agrofresh-solutions-equity-fair-gurufocus-com/#respond Sat, 12 Jun 2021 06:02:56 +0000 https://astraveloffl.com/agrofresh-solutions-equity-fair-gurufocus-com/ AgroFresh Solutions’ stock (NAS: AGFS, 30 years Financials) gives all indications of being slightly undervalued, according to the GuruFocus value calculation. The GuruFocus Value is GuruFocus’s estimate of the fair value at which the stock is to trade. It is calculated based on the historical multiples at which the stock has traded, past business growth, […]]]>


AgroFresh Solutions’ stock (NAS: AGFS, 30 years Financials) gives all indications of being slightly undervalued, according to the GuruFocus value calculation. The GuruFocus Value is GuruFocus’s estimate of the fair value at which the stock is to trade. It is calculated based on the historical multiples at which the stock has traded, past business growth, and analysts’ estimates of future business performance. If a share’s price is significantly above the GF value line, it is overvalued and its future performance may be poor. On the other hand, if it is significantly below the GF value line, its future return is likely to be higher. At its current price of $ 2.17 per share and market cap of $ 114.9 million, AgroFresh Solutions stock appears to be slightly undervalued. The GF value for AgroFresh solutions is shown in the table below.

Because AgroFresh Solutions is relatively undervalued, its long-term stock return is likely to outweigh its business growth, which is expected to grow 3.17% per year over the next three to five years.

Link: These companies can offer higher future returns with reduced risk.

Investing in companies with low financial strength presents a higher risk of permanent loss of capital. Thus, it is important to carefully consider the financial strength of a company before deciding whether or not to buy its shares. Looking at the cash-to-debt ratio and interest coverage is a great starting point for understanding the financial strength of a business. AgroFresh Solutions has a cash-to-debt ratio of 0.20, which is worse than 70% of companies in the consumer packaged goods industry. GuruFocus ranks the overall financial strength of AgroFresh Solutions at 3 out of 10, which indicates that the financial strength of AgroFresh Solutions is low. Here is AgroFresh Solutions’ debt and cash flow over the past few years:

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Companies that have historically been profitable over the long term pose less risk to investors who want to buy stocks. Higher profit margins usually dictate a better investment compared to a business with lower profit margins. AgroFresh Solutions has been profitable 3 in the past 10 years. In the past twelve months, the company achieved sales of $ 163.6 million and a loss of $ 1 per share. His the operating margin is 7.54%, which ranks in the mid-range of companies in the consumer packaged goods industry. Overall, AgroFresh Solutions’ profitability is ranked 3 out of 10, indicating low profitability. Here is AgroFresh Solutions’ sales and net income over the past few years:

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One of the most important factors in the valuation of a business is growth. Long-term equity performance is closely linked to growth, according to GuruFocus research. Companies that grow faster create more shareholder value, especially if that growth is profitable. AgroFresh Solutions’ average annual revenue growth is -1.7%, which is worse than 66% of companies in the consumer packaged goods industry. The 3-year average EBITDA growth is -21.2%, which is worse than 87% of companies in the consumer packaged goods sector.

Another way to look at the profitability of a business is to compare its return on invested capital and the weighted cost of capital. Return on invested capital (ROIC) The extent to which a business generates cash flow relative to the capital it has invested in its business. The weighted average cost of capital (WACC) is the rate that a company should pay on average to all its security holders to finance its assets. We want to have a return on invested capital greater than the weighted cost of capital. Over the past 12 months, the return on invested capital of AgroFresh Solutions is 18.23 and its cost of capital is 10.18. The historical ROIC vs WACC comparison of AgroFresh solutions is shown below:

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In conclusion, the share of AgroFresh Solutions (NAS: AGFS, 30 years Financials) gives all the indications of being modestly undervalued. The company’s financial situation is bad and its profitability is bad. Its growth ranks worse than 87% of companies in the consumer packaged goods industry. To find out more about the AgroFresh Solutions share, you can consult its financial data over 30 years here.

To find out about high-quality companies that can deliver above-average returns, please see GuruFocus High Quality Low Capex Screener.



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Transport Services Stock Is Bel https://astraveloffl.com/transport-services-stock-is-bel/ https://astraveloffl.com/transport-services-stock-is-bel/#respond Fri, 11 Jun 2021 21:03:13 +0000 https://astraveloffl.com/transport-services-stock-is-bel/ Carriage Services (NYSE: CSV, 30-year Financials) stock gives any indication that it is significantly overvalued, as calculated by GuruFocus Value. The GuruFocus Value is GuruFocus’s estimate of the fair value at which the stock is to trade. It is calculated based on the historical multiples at which the stock has traded, the company’s past growth, […]]]>


Carriage Services (NYSE: CSV, 30-year Financials) stock gives any indication that it is significantly overvalued, as calculated by GuruFocus Value. The GuruFocus Value is GuruFocus’s estimate of the fair value at which the stock is to trade. It is calculated based on the historical multiples at which the stock has traded, the company’s past growth, and analysts’ estimates of the company’s future performance. If a share’s price is significantly above the GF value line, it is overvalued and its future performance may be poor. On the other hand, if it is significantly below the GF value line, its future return is likely to be higher. At its current price of $ 38.24 per share and market cap of $ 696 million, Carriage Services stock would be significantly overvalued. The GF value of the transport services is shown in the table below.

Because Carriage Services is significantly overvalued, the long-term return on its stock is likely to be much lower than the future growth of its business, which has averaged 7.7% over the past three years and is expected to grow by 7. 30% per year over the next three to five years.

Link: These companies can offer higher future returns with reduced risk.

Investing in companies with low financial strength presents a higher risk of permanent loss of capital. Thus, it is important to carefully consider the financial strength of a company before deciding whether or not to buy its shares. Looking at the cash-to-debt ratio and interest coverage is a great starting point for understanding the financial strength of a business. Carriage Services has a cash-to-debt ratio of 0.00, which is in the bottom 10% of businesses in the personal services industry. GuruFocus ranks the overall financial strength of Carriage Services at 3 out of 10, which indicates that the financial strength of Carriage Services is poor. Here is Carriage Services’ debt and cash flow over the past few years:

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It is less risky to invest in profitable companies, especially those whose profitability is constant over the long term. A business with high profit margins is generally a safer investment than one with low profit margins. Carriage Services has been profitable 10 in the past 10 years. In the past twelve months, the company achieved sales of $ 348.6 million and earnings of $ 1.84 per share. His the operating margin is 25.18%, which ranks better than 89% of companies in the personal services sector. Overall, Carriage Services’ profitability is ranked 8 out of 10, indicating strong profitability. Here is the turnover and net result of Carriage Services in recent years:

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Growth is probably the most important factor in the valuation of a business. GuruFocus research has shown that growth is closely tied to the long-term performance of a company’s stocks. The faster a company grows, the more likely it is to create shareholder value, especially if the growth is profitable. The 3-year average annual revenue growth rate for transportation services is 7.7%, which ranks better than 74% of businesses in the personal services industry. The 3-year average EBITDA growth rate is 4.4%, which is in line with the average for companies in the personal services industry.

Another way to look at the profitability of a business is to compare its return on invested capital and the weighted cost of capital. Return on invested capital (ROIC) The extent to which a business generates cash flow relative to the capital it has invested in its business. The weighted average cost of capital (WACC) is the rate that a company should pay on average to all its security holders to finance its assets. We want to have a return on invested capital greater than the weighted cost of capital. Over the past 12 months, Carriage Services Return on Invested Capital is 5.28 and its cost of capital is 5.69. The historical ROIC vs WACC comparison of transportation services is shown below:

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In conclusion, the Carriage Services (NYSE: CSV, 30-year-old Financials) stock appears to be significantly overvalued. The company’s financial situation is bad and its profitability is strong. Its growth is in the mid-range of companies in the personal services industry. To learn more about Carriage Services’ stock, you can view its 30-year financial data here.

To find out about high-quality companies that can deliver above-average returns, please see GuruFocus High Quality Low Capex Screener.



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