By applying different what-if scenarios to Walt Disney (DIS), I arrived at a conclusion that a fair value would be more likely in the $85 range. This provides almost a 15% downside.
Before we can apply any valuation metrics to Walt Disney, we need three inputs to start with. These are normalized return on equity (RoE), free cash flow (FCF) and long-term revenue growth. As market expectations are usually way too optimistic (see this for example), I place little relevance on them. The same thing can be said about what management is targeting in the long term. This is why I place more weight on how the company has managed to perform in recent years.
In figures 1-3 below, you can see what kind of FCF-to-sales ratio, RoE and revenue growth Walt Disney has achieved in recent years. The FCF-to-sales ratio has been gradually increasing from 10% level to 15% level during the last decade. However, to be on the safe side, I will be using a 12.0% FCF ratio to sales as a normalized one. This translates into roughly normalized FCF per share of $4.17 ($55632.0 million * 12.0% / 1600.0 million). Assessing a sustainable RoE level is a bit more difficult due to the current low interest rate environment. I will be using the 2016 value of $43265.0 million as the base value for equity. This translates into equity per share value of roughly $27.0 ($43265.0 million / 1600.0 million). This means a 15.4% RoE ($4.17 / $27.0). The growth has been surprisingly stable for more than a decade. For the last 10 years, the growth has been in the 5.0% level so in the analysis we will be using an annual growth of 4.0% and 6.0%.
Top Value Stocks To Buy For 2019: Oil States International Inc.(OIS)
Advisors' Opinion:- [By Shane Hupp]
Shares of Oil States International, Inc. (NYSE:OIS) have received an average recommendation of “Hold” from the nineteen brokerages that are currently covering the company, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating, thirteen have issued a hold rating and four have assigned a buy rating to the company. The average 1-year price objective among brokerages that have issued a report on the stock in the last year is $32.38.
- [By Stephan Byrd]
Oil States International (NYSE: OIS) and Newpark Resources (NYSE:NR) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.
- [By Shane Hupp]
Get a free copy of the Zacks research report on Oil States International (OIS)
For more information about research offerings from Zacks Investment Research, visit Zacks.com
- [By Joseph Griffin]
Oil States International (NYSE: OIS) is one of 14 public companies in the “Oil & gas field machinery” industry, but how does it contrast to its peers? We will compare Oil States International to similar businesses based on the strength of its institutional ownership, profitability, analyst recommendations, valuation, dividends, earnings and risk.
- [By Stephan Byrd]
These are some of the news articles that may have impacted Accern’s rankings:
Get Oil States International alerts: Oil States Names New Board Chairman To Replace Mark Papa (epmag.com) Oil States chairman Papa resigns, joins Schlumberger’s board (seekingalpha.com) Oil States International chairman resigns, joins Schlumberger's board of directors (finance.yahoo.com) Oil States' Board Names Robert L. Potter as its New Chairman (finance.yahoo.com) Oil States International, Inc. (OIS) Expected to Announce Quarterly Sales of $284.87 Million (americanbankingnews.com)Several equities analysts have commented on OIS shares. ValuEngine cut shares of Oil States International from a “buy” rating to a “hold” rating in a research report on Saturday, June 2nd. Wells Fargo & Co cut shares of Oil States International from an “outperform” rating to a “market perform” rating in a research report on Monday, April 30th. Zacks Investment Research cut shares of Oil States International from a “buy” rating to a “hold” rating in a research report on Wednesday, April 25th. SunTrust Banks set a $32.00 target price on shares of Oil States International and gave the stock a “hold” rating in a research report on Thursday, May 3rd. Finally, Evercore ISI cut shares of Oil States International from an “in-line” rating to an “underperform” rating in a research report on Monday, April 30th. One investment analyst has rated the stock with a sell rating, twelve have assigned a hold rating and three have given a buy rating to the company. The stock has an average rating of “Hold” and an average target price of $32.08.
- [By Stephan Byrd]
Get a free copy of the Zacks research report on Oil States International (OIS)
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Top Value Stocks To Buy For 2019: Golar LNG Partners LP(GMLP)
Advisors' Opinion:- [By Matthew DiLallo]
Shares of Golar LNG Limited (NASDAQ:GLNG) are plunging today, down more than 17% as of 10:45 a.m. EDT, after the company reported lackluster first-quarter results. The company's master limited partnership, Golar LNG Partners (NASDAQ:GMLP), also dropped, falling nearly 10% by midmorning.
- [By Shane Hupp]
Tidewater (NYSE:TDW) and Golar LNG Partners (NASDAQ:GMLP) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.
- [By Shane Hupp]
State of New Jersey Common Pension Fund D boosted its stake in shares of Golar LNG Partners LP (NASDAQ:GMLP) by 126.3% during the first quarter, Holdings Channel reports. The institutional investor owned 154,800 shares of the shipping company’s stock after purchasing an additional 86,400 shares during the quarter. State of New Jersey Common Pension Fund D’s holdings in Golar LNG Partners were worth $2,649,000 at the end of the most recent quarter.
- [By Matthew DiLallo]
Shares of oil producers Laredo Petroleum (NYSE:LPI) and SM Energy (NYSE:SM), as well as units of Golar LNG Partners LP (NASDAQ:GMLP), an MLP that owns liquified natural gas carriers and floating storage and regasification units, all declined by double digits by Friday afternoon. Lower oil prices weighed on the first two, while an analyst downgrade was the culprit in the latter.
Top Value Stocks To Buy For 2019: Invesco Trust for Investment Grade Municipals(VGM)
Advisors' Opinion:- [By Max Byerly]
Media headlines about Invesco Van Kmpn Trst Fr Invst Grd Mncpl (NYSE:VGM) have been trending somewhat positive recently, Accern reports. The research group scores the sentiment of press coverage by reviewing more than 20 million news and blog sources in real-time. Accern ranks coverage of companies on a scale of -1 to 1, with scores closest to one being the most favorable. Invesco Van Kmpn Trst Fr Invst Grd Mncpl earned a news impact score of 0.19 on Accern’s scale. Accern also gave headlines about the investment management company an impact score of 46.4657191418091 out of 100, indicating that recent press coverage is somewhat unlikely to have an impact on the company’s share price in the immediate future.
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