IP

Fair Value Estimate Changes: Facebook, Twitter, Caterpillar and More…

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  By Kris Rosemann and Brian Nelson, CFA Let’s begin this edition of Recent Material Fair Value Estimate Changes’ with a discussion of some of the highest-profile names that made the list. If you require background reading on why we make changes to our valuation models, please see: What causes fair value estimates to change? Best Ideas Newsletter portfolio holding Facebook (FB) continues to separate itself from other social media companies, and we continue to be impressed by its free cash flow generating prowess and net cash-rich balance sheet. Our most recent fair value estimate increase comes largely as a result of greater optimism regarding the sustainability of the company’s pace of revenue growth, reflected by a hike in our mid-cycle … Read more

Dividend Increases/Decreases for the Week Ending October 14

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Below we provide a list of firms that raised/lowered their dividends during the week ending October 14. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week Ameren (AEE): now $0.44 per share quarterly dividend, was $0.425. Brown & Brown Insurance (BRO): now $0.135 per share quarterly dividend, was $0.1225. Cantel Medical (CMN): now $0.07 per share semi-annual dividend, was $0.06. Eaton Vance (EV): now $0.28 per share quarterly dividend, was $0.265. Gladstone Land (LAND): now $0.0425 per share monthly dividend, was $0.04125. Healthcare Services (HCSG): now $0.185 per share quarterly dividend, was … Read more

Video: An Overview of Our 16-page Stock Research Reports

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Dividend Increases/Decreases for the Week Ending October 16

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Below we provide a list of firms that raised/lowered their dividends during the week ending October 16. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week Antero Midstream (AM): now $0.205 per share quarterly dividend, was $0.19. Cantel (CMN): now $0.06 per share semi-annual dividend, was $0.05. Cintas (CTAS): now $1.05 per share annual dividend, was $0.85. Dorchester Minerals (DMLP): now $0.1942 per share quarterly dividend, was $0.1674. Eaton Vance (EV): now $0.265 per share quarterly dividend, was $0.25. Healthcare Services (HCSG): now $0.18 per share quarterly dividend, was $0.1788.  International Paper … Read more

Dividend Increases/Decreases for the Week Ending September 12

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Below we provide a list of firms that raised/lowered their dividends during the week ending September 12. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week Armanino Foods (AMNF): now $0.018 per share quarterly dividend, was $0.016. Associated Estates Realty (AEC): $0.20 per share quarterly dividend, was $0.19. Brady (BRC): now $0.20 per share quarterly dividend, was $0.195. Frisch’s Restaurants (FRS): now $0.20 per share quarterly dividend, was $0.18. International Paper (IP): now $0.40 per share quarterly dividend, was $0.35. Philip Morris (PM): now $1.00 per share quarterly dividend, was $0.94. Realty Income … Read more

Valuentum Economic Castleâ„¢ Rating Update

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Read: Keeping the Horse Before the Cart: Valuentum’s Economic Castle™ Rating The Economic Castle Focuses on the Magnitude of Economic Value Creation The Valuentum Economic Castle™ rating is an enhancement of the competitive advantage framework (commonly known as economic moat analysis) that has become widespread and ubiquitous within the investing world. Whereas an economic moat framework evaluates a firm on the basis of the sustainability and durability of its competitive advantages, Valuentum’s Economic Castle™ rating evaluates a firm on the basis of the firm’s future economic profit spread (return on invested capital less its weighted average cost of capital). The companies with the strongest Valuentum Economic Castle™ ratings are poised to generate the most economic value for shareholders in the … Read more

Industrial and Consumer Packaging Drive Results at International Paper

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On Thursday morning, International Paper (IP) posted record third quarter operating earnings driven by solid margin expansion. Revenue increased 5% year-over-year to $7.4 billion, slightly below consensus expectations. Operating earnings per share of $1.05 per share were in-line with consensus estimates and 30% higher than the year ago period. Year-to-date, free cash flow stands at $1.2 billion, down slightly compared to the same period a year ago, but still equal to 5.6% of total revenue. Robust Industrial Packaging Image Source: IP 3Q13 Slides North American Industrial Packaging was a standout performer for International Paper during the third quarter. As shown in the above chart, the segment’s EBITDA margins easily eclipse peers and increased 510 basis points year-over-year to 24.4%. Although wood … Read more

Packaging Corporation of America Bets Big on Boise

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Monday morning, Packaging Corporation of America (click ticker for report: ) announced that it will pay $12.55 per share in cash to acquire paper company Boise (BZ) for a total deal value of $1.995 billion. The deal increases PCA’s containerboard presence by 42% to 3.7 million tons, while also giving PCA a presence in the Pacific Northwest—an area previously underrepresented. Source: BZ 2012 10-K Though Boise has struggled with large amounts of excess capacity in its newsprint segment, we’ve seen the firm move capacity closer to production over the past two years, leading to stabilized profitability. Nevertheless, the small, Idaho-based player was unable to truly compete with national competitors. Further, Boise had a large net-debt position, leaving the company fairly … Read more

International Paper Issues a Strong Second Quarter Report; Expects Free Cash Flow to Improve

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International Paper (click ticker for report: ) reported strong second quarter results Thursday that showed impressive core operating-income improvement. Revenue advanced 3.6% during the period thanks to strong performance in its ‘Industrial Packaging’ and ‘Consumer Packaging’ segments, both of which jumped 9.6%. ‘Industrial Packaging’ was bolstered by higher selling prices for boxes and containerboard (and increased containerboard volumes), while the strength in ‘Consumer Packaging’ was primarily a result of higher volumes (namely from Asian coated paperboard). ‘Distribution’ revenues fell, while sales in its ‘Printing Papers’ division edged up 2%. On the whole, revenue performance was solid. International Paper’s segment operating profit surged more than 40%, to $601 million, though a number of large special items in the prior-year period made … Read more

International Paper Making Good on Cost Savings Promises

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Paper and containerboard producer International Paper (click ticker for report: ) reported solid third quarter results Thursday morning. Sales increased 6% year-over-year to $7 billion, a tad short of consensus estimates. Earnings, adjusted for one-time impacts, fell 7% year-over-year to $0.75 per share. Industrial packaging performed well, falling just 7% year-over-year after divesting three containerboard mills. The segment benefited from lower input costs and decreased maintenance outages, though these were partially offset by lower sales volumes. Industrial packaging is also benefiting from better than expected synergies from the firm’s Temple Island acquisition, which could be $100 million greater than initially predicted. Image Source: International Paper Earnings Presentation Printing Papers performance was also strong, with earnings growing 90% year-over-year to $206 … Read more