SCVL

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

Nike’s Earnings Expansion Will Continue to Be Challenged

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On Thursday, Nike (NKE) reported strong fiscal second-quarter results. Revenue expanded 8% during the period (9% on a currency neutral basis), while diluted earnings per share from continuing operations nudged 4% higher, to $0.59 per share. Sales at its Nike brand expanded in every product type, geography and key category. Sales in its Converse brand advanced 11% on a currency-neutral basis thanks to strong performance in its largest owned markets. Though we liked that gross margins advanced 140 basis points in the period thanks to a mix of higher-margin products, higher prices, and lower input costs, selling and administrative expenses leapt 14%, exceeding the pace of revenue growth. Earnings before interest and taxes for the three months ended November 30, … Read more

PLG Brands Continues to Drive Wolverine Worldwide

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Shoe seller Wolverine Worldwide (click ticker for report: ) posted strong third-quarter results driven largely by former Best Ideas Newsletter portfolio holding Collective Brands’ PLG brands. Revenue surged 9% year-over-year on a pro forma basis and more than doubled on a year-over-year reported basis, to $717 million (modestly exceeding consensus estimates). Earnings per share were even stronger, rising 61% year-over-year to $1.16 (excluding acquisition costs) and coming in handily above consensus expectations. Year-to-date, the company has generated $96.2 million in free cash flow, equal to 5% of total revenue. Image Source: Wolverine Worldwide Wolverine’s ‘Lifestyle’ and ‘Performance’ groups were the drivers behind revenue expansion during the quarter as the company continues to capitalize on the success of recently-acquired Sperry Top-Sider … Read more

Nike Marks a Strong Start to Earnings Season

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After becoming the newest member of the Dow Jones Industrial Average, athletic apparel giant Nike (click ticker for report: ) posted a fantastic start to its 2014 fiscal year. First quarter revenue jumped 8% year-over-year to $7 billion, roughly in-line with consensus estimates. Earnings per share, on the other hand, soared past consensus expectations, growing 37% year-over-year to $0.86. Free cash flow totaled $379 million, equal to 5.4% of net revenue. Product Demand Remains Robust The primary reason behind Nike’s continued strength in the athletic apparel space is the robust demand for its products. The firm continues to innovate, particularly in the running and basketball spaces, and the innovations helped demand remain strong across all geographies. Revenue in North America, … Read more

Strength in Footwear Persists

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Shoe retailers DSW (click ticker for report: ) and Brown Shoe Company (BWS) posted better-than-expected second-quarter results. DSW On Tuesday, DSW’s second-quarter release revealed that its sales surged 9.7% year-over-year to $562 million, easily exceeding consensus expectations. Earnings per share adjusted for luxury testing and the termination of Retail Venture Inc’s pension plan increased 47% year-over-year, to $0.97. Image Source: Valuentum, Company Filings After same-store sales slipped 2.4% during the first quarter, DSW returned to growth in the second quarter, with same-store sales 4.4% higher than the same period a year ago, re-accelerating the two-year comp trend (8.6%). Not only has DSW added some new merchandise to stores with necklaces and other small accessories, but management pointed to strength in … Read more

Firms Raising Their Dividends in the Week Ending March 29

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Very few firms raised their dividend during the week ending March 29. To access our dividend reports, please click here. Firms Raising Their Dividends This Week: Camden National (CAC): now $0.27 per share quarterly dividend, was $0.25. City Holding Company (CHCO): now $0.37 per share quarterly dividend, was $0.35. The Female Health Company (FHCO): now $0.07 per share quarterly dividend, was $0.06. Shoe Carnival (SCVL): now $0.06 per share quarterly dividend, was $0.05. Signet Jewelers (SIG): now $0.15 per share quarterly dividend, was $0.12. Washington Federal (WAFD): now $0.09 per share quarterly dividend, was $0.08.

Adding Collective Brands to Our Best Ideas List

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This article appeared on Seeking Alpha. Please view disclosures: https://seekingalpha.com/article/278772-collective-brands-turnaround-candidate-not-value-trap  Collective Brands Looks More Like a Turnaround Than a Value Trap We have initiated coverage of Collective Brands (PSS) at a fair value of $24 per share based on our discounted cash-flow process. The company reported a miserable first quarter, and the stock has languished since, creating an excellent buying opportunity for long-term investors, in our opinion. Legendary investor Peter Lynch made quite a bit of money betting on turnarounds, and we think Collective Brands is the quintessential turnaround candidate. We think the stock is unfairly beaten down, providing considerable upside to patient investors. We are adding the firm to our Best Ideas List. Source: Valuentum Securities Inc.Source: Valuentum Securities Inc. (in millions of … Read more

Stock Market Outlook for 2021

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By Valuentum Analysts February 8, 2021 2020 was one for the history books. We covered our thoughts and reflections on the past year in our “2020 Won’t Soon Be Forgotten” article (link here), and now we are looking towards the future. Global health authorities should be able to bring an end to the ongoing coronavirus (‘COVID-19’) pandemic sooner than many had expected as several vaccines have already been improved for emergency use and several others appear increasingly likely to get approved. Global vaccine distribution activities are currently underway, and this should allow the world to slowly return to pre-pandemic activities. Before then, immense stimulus measures launched primarily in developed nations should support global economic activities until the public health crisis … Read more

Update: Frequently Asked Questions About Valuentum Securities, Inc.

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What is Valuentum Securities? Valuentum (val∙u∙n∙tum) [val-yoo-en-tuh-m] Securities Inc. is an independent investment research publisher, offering premium equity reports and dividend reports, as well as commentary across all sectors/companies, a Best Ideas Newsletter (spanning market caps, asset classes), a Dividend Growth Newsletter, modeling tools/products, and more. Independence and integrity remain our core, and we strive to be a champion of the investor. Valuentum is based in the Chicagoland area. Valuentum is not a money manager, broker, or financial advisor. Valuentum is a publisher of financial information. How do I subscribe to Valuentum’s investment research services? 1)    Click the following link: signup-page. 2)    Select your membership plan. 3)    Enter your contact details. 4)    Click ‘Sign Up.’ 5)    Complete your purchase. 6)   Your payment profile may be recurring, so please check … Read more

Nelson: The 16 Most Important Steps To Understand The Stock Market

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A previous version of this article appeared on our website July 21, 2013. Refreshed and updated throughout, as of July 2018. By Brian Nelson, CFA After earning my MBA at the University of Chicago Booth School of Business and training stock and credit analysts from large organizations over the past decade or so, I have heard just about every question (though I admit I am still surprised by many things and remain a very humble student of the markets). I’ve also spent years perfecting the discounted cash flow process for large research organizations such as Morningstar and studied under one of the most famed aggressive growth investors of all time, Richard Driehaus. My knowledge runs the gamut from value through … Read more