The Company: Allstate Corporation (ALL) is a large cap insurance company that was founded in 1931. The auto portion of the company is the second largest in the US and the home insurance portion of the company is the fourth largest. According to a handful of insurance ratings, the company holds high rankings, which highlights their customer satisfaction. Since the early 2000s Allstate has promoted the “Are you in good hands?” slogan, which is known by almost everyone in the US.
Advantages: Although the underwriting business is challenging, it can produce consistent revenues year after year if you’re able to satisfy customers and continue to improve that aspect of the business. Recently, they sold off their life insurance portion to Blackstone. Some many see this as a downfall, but I see it as management whiling to make hard decisions so that they can improve on what they are good at, auto and home insurance. They aren’t the largest insurance company in either auto or home, but that means they have room to grow which is a nice problem to have when you are wanting a company to grow. The two types of insurance they chose to focus on are types that most US citizens need to have. To drive a car, you must have car insurance. When it comes to home insurance, it’s not a good move to not have insurance, and most lenders require you to when getting a loan. As time goes on more people are acquiring homes and cars which should increase customers. Because of these reasons, one can expect consistent revenue in the future if they keep customers happy.
Disadvantages: The future state of auto insurance is their biggest concern. Some would say that insurance for self-driving cars could be cheaper, or non-existent. I wouldn’t go as far to say that we would not have insurance. For one it is the law, and for two, even if self-driving cars are nearly perfect, there is still a need to insure your car for many other reasons such as natural disasters, road wear, personal legal reasons, etc. However, these concerns would be many years down the road. The amount of companies in this sector means that there is plenty of competition. I like the competition; it’ll force the company to continuously get better. If they don’t, it could be bad, but it would take a while for that to trickle to the revenue in a meaningful way. Insurance companies are responsible for their customers. This means if natural disasters occur, it can quickly drain their cash. The underwriting business is challenging, little decisions can make a significant impact. Good or bad.
Valuation and current state: Allstate is considered a value play from my perspective. The P/E, P/B, P/S, P/CF, and enterprise multiple are 6.38, 1.18, 0.78, 6.51 and 5.89, respectively. Looking at these valuation measures they are attractive, especially considering they are all lower than the five year averages. The dividend has been constantly growing over the past five years, and with the payout ratio being lower than 15%, they will have no trouble paying it to shareholders. With a debt/cash ratio ~1, and the debt/EBITDA >1, the debt is not a stress to the company. Doing a DCF I can get the company undervalued and should expect nice returns if the FCF keeps up. At its current price, it’s attractive.
Final thoughts: Allstate isn’t the attractive tech company that has been getting a lot of attention as of recently, which could be a reason it’s undervalued. I like how the revenue will be relatively stable due to there products being something customers need to have. I found it impressive that even in 2020 the company was able to turn a profit. Many people were not driving and decreased the amount of coverage to take coverage off altogether. This shows that Allstate excels at underwriting. I like this pick and am considering taking a position.
Links:
https://www.morningstar.com/stocks/xnys/all/valuation
https://finance.yahoo.com/quote/ALL/key-statistics?p=ALL
https://www.allstate.com
https://www.insurancejournal.com/news/national/2020/02/10/558054.htm
https://www.nerdwallet.com/blog/insurance/top-home-insurance-companies/
https://www.valuepenguin.com/largest-auto-insurance-companies
Showing posts with label value. Show all posts
Showing posts with label value. Show all posts
Monday, March 8, 2021
Wednesday, February 17, 2021
Intel Corporation (INTC)
The Company: Intel Corporation (INTC) is an electronic hardware design and manufacturing company. Although Intel is primarily known for its processors, it has many products in the semiconductor and electrical hardware field such as electrical server products, chipsets, wireless products, memory storage, networking, and etc. For many years it has been the leader in providing processors for computers. Over the past decade, it has been exposed to a handful of competitors in the industry.
Company Mote/Advantages: Intel has a well-established infrastructure from a tangible and intangible asset prospective. For a number of years Intel has been the predominant provider of processors for computers. This allowed them to build a reputation for themselves. Everyone knows of the Intel sticker on their computer. With the variety of products Intel is offering, it reduces the volatility of their revenue, and shows they are willing to adjust to the industry. With their magnitude of cash flow and knowledge base they have the ability to adjust to the industry and introduce new products. With their new CEO, I could see a culture shift in the near future, in a positive way. Over the past decade, Intel hasn’t been as innovative as the companies around them. Some say management could be a cause of this. The new CEO is reputable and has extensive experience at Intel, which could change things around putting them back on top.
Disadvantages: The biggest downfall for Intel recently has been primarily 3 things. Let’s start with competition. With the high profit margin and lack of competitors, this naturally attracted competition. It didn’t seem like a problem before due to the complexity of these products and the large amount of capital it takes to make it in this industry. But, give companies like AMD enough time and they will prevail, as they have. Both processors have their pros and cons, but for right now AMD has Intel beat on a performance/price ratio. This doesn’t mean they are doomed. It just means they are finally being challenged and they need to become more innovative and cheaper to compete. Secondly, is the lack of production. In the last year they have announced that they are delayed on a new product line. Lastly and probably one that scared most investors the most is Apple announcing they will be designing and manufacturing their own processors. Apple has always used Intel in their products which means in the future Apple will no longer be a large revenue stream.
Valuation and current state: Enterprise multiple and every other valuation measure screams deep value, EV/ebitda, P/E, P/CF are 7, 12.5, 7.4 respectively which are lower than the 5 year averages. The company also has an impressive ROE 26%. Although there have been some downfalls, Intel is still a growing cash pumping machine that will continue to be innovative. Running conservative DCF models double digit returns are seen in a variety of situations. If the company does turn things around, impressive return could occur. Lastly, with a consistent dividend, it adds to the attraction.
Final thoughts: I understand the concerns many people have after recent years. I think that the competition will challenge the company in a good way. They have the infrastructure to “out” innovative AMD and others, it just needs to. A good thing to remember is that will never be a crazy growth stock that is common now days, it will be a steady slow growth cash pumping machine that has a more potential due to its experience and history.
Company Mote/Advantages: Intel has a well-established infrastructure from a tangible and intangible asset prospective. For a number of years Intel has been the predominant provider of processors for computers. This allowed them to build a reputation for themselves. Everyone knows of the Intel sticker on their computer. With the variety of products Intel is offering, it reduces the volatility of their revenue, and shows they are willing to adjust to the industry. With their magnitude of cash flow and knowledge base they have the ability to adjust to the industry and introduce new products. With their new CEO, I could see a culture shift in the near future, in a positive way. Over the past decade, Intel hasn’t been as innovative as the companies around them. Some say management could be a cause of this. The new CEO is reputable and has extensive experience at Intel, which could change things around putting them back on top.
Disadvantages: The biggest downfall for Intel recently has been primarily 3 things. Let’s start with competition. With the high profit margin and lack of competitors, this naturally attracted competition. It didn’t seem like a problem before due to the complexity of these products and the large amount of capital it takes to make it in this industry. But, give companies like AMD enough time and they will prevail, as they have. Both processors have their pros and cons, but for right now AMD has Intel beat on a performance/price ratio. This doesn’t mean they are doomed. It just means they are finally being challenged and they need to become more innovative and cheaper to compete. Secondly, is the lack of production. In the last year they have announced that they are delayed on a new product line. Lastly and probably one that scared most investors the most is Apple announcing they will be designing and manufacturing their own processors. Apple has always used Intel in their products which means in the future Apple will no longer be a large revenue stream.
Valuation and current state: Enterprise multiple and every other valuation measure screams deep value, EV/ebitda, P/E, P/CF are 7, 12.5, 7.4 respectively which are lower than the 5 year averages. The company also has an impressive ROE 26%. Although there have been some downfalls, Intel is still a growing cash pumping machine that will continue to be innovative. Running conservative DCF models double digit returns are seen in a variety of situations. If the company does turn things around, impressive return could occur. Lastly, with a consistent dividend, it adds to the attraction.
Final thoughts: I understand the concerns many people have after recent years. I think that the competition will challenge the company in a good way. They have the infrastructure to “out” innovative AMD and others, it just needs to. A good thing to remember is that will never be a crazy growth stock that is common now days, it will be a steady slow growth cash pumping machine that has a more potential due to its experience and history.
Links:
https://app.tikr.com/stock/multiples?cid=21127&tid=2621295
https://www.gurufocus.com/stock/intc/dcf
https://www.morningstar.com/stocks/xnas/intc/valuation
https://simplywall.st/stocks/us/semiconductors/nasdaq-intc/intel/news/is-weakness-in-intel-corporation-nasdaqintc-stock-a-sign-that-the-market-could-be-wrong-given-its-strong-financial-prospects
https://www.fool.com/investing/2021/01/24/why-intel-stock-spiked-then-crashed-last-week-afte/
https://www.youtube.com/watch?v=1wt8KHIB0G8
https://www.gurufocus.com/stock/intc/dcf
https://www.morningstar.com/stocks/xnas/intc/valuation
https://simplywall.st/stocks/us/semiconductors/nasdaq-intc/intel/news/is-weakness-in-intel-corporation-nasdaqintc-stock-a-sign-that-the-market-could-be-wrong-given-its-strong-financial-prospects
https://www.fool.com/investing/2021/01/24/why-intel-stock-spiked-then-crashed-last-week-afte/
https://www.youtube.com/watch?v=1wt8KHIB0G8
Saturday, February 6, 2021
Dollar General Corporation (DG)
The Company: Dollar General Corporation (DG) is a discount retailer having a large-cap market size. The company was founded in 1939 and went public in 1968. As of last year, the company is operating around 16,300 stores in the United States. Dollar General offers a wide variety of products but with limited inventory. Its business model focuses on convenience and great prices.
Advantages: Dollar General can open stores in a wide variety of locations due to its smaller size. Combine that with its convenienceand great price business model, I think that puts it in its own little niche of the industry. Their prices points arecompetitive - allowing it to attract a wide variety of customers in both good and bad economic times. Remote areas which larger stores such as Walmart won’t even consider due to the lack of people, are great locations for Dollar General. Since a store only needs limited land, construction, and inventory; it isn’t a significant capital allocation relative to its market cap. In summary, there is a limited financial risk to plant a store.
Disadvantages:
Its biggest competitors are stores like Dollar Tree, Five Below, and mom and pop local grocery stores. Dollar Tree and Five Below offer lower quality and fewer products, but generally at a lower price. I wouldn’t say these stores are fierce competitors but they could steal potential revenue if located near a Dollar General. I don’t see much turmoil from Mom and Pop stores unless they have a local producer or a loyal customer advantage. The biggest risk from an investor’s perspective is the management. Since it can plant stores pretty much anywhere, it could get it in trouble if they are not placed strategically.
Valuation and Current State: DG currently has an enterprise multiple of around 15 putting it at a reasonable valuation at first glance. Valuation ratios such as P/E, P/S, P/B, ROE, and P/CF, are at reasonable values but are currently a little higher than their 5 year average. The debt is something to pay attention to. When looking at the debt to EBITDA ratio, we see something close to 0.5, which is reassuring. With the amount of FCF the company creates, it can pay down debt if needed to be. The company offers a dividend that is only a small portion of net income - around 14%. The dividend has consistently increased over the years. The highlight of this company is the growth over the past few years and projected future growth. The growth levels are seen in the net income as well; around 14% over the past 5 years and are projected to be the same, if not better. Lastly, the company has consistently bought back shares over the years which is always a good sign.
Final Thoughts: With the simple business model, I see the growth projections staying on the track. Since the industry niche that it’s in isn’t incredibly attractive; I don’t see competitors interfering. I’m drawn to unpopular companies and industries so you could say I’m naturally drawn to this pick. Especially with the consistency I see in the financial statements, I would like to see a correction before taking on a position but overall I like this pick.
Links:
https://www.morningstar.com/stocks/xnys/dg/valuation
https://finance.yahoo.com/quote/DG/key-statistics?p=DG
https://www.gurufocus.com/stock/DG/summary?search=dg
https://www.fool.com/investing/2021/01/06/better-buy-costco-vs-dollar-general/
https://www.dollargeneral.com
https://finance.yahoo.com/news/why-dollar-general-analyst-turning-195628496.html
https://simplywall.st/stocks/us/retail/nyse-dg/dollar-general/news/is-dollar-general-nysedg-using-too-much-debt
https://simplywall.st/stocks/us/retail/nyse-dg/dollar-general/news/if-you-like-eps-growth-then-check-out-dollar-general-nysedg/amp
Advantages: Dollar General can open stores in a wide variety of locations due to its smaller size. Combine that with its convenienceand great price business model, I think that puts it in its own little niche of the industry. Their prices points arecompetitive - allowing it to attract a wide variety of customers in both good and bad economic times. Remote areas which larger stores such as Walmart won’t even consider due to the lack of people, are great locations for Dollar General. Since a store only needs limited land, construction, and inventory; it isn’t a significant capital allocation relative to its market cap. In summary, there is a limited financial risk to plant a store.
Disadvantages:
Its biggest competitors are stores like Dollar Tree, Five Below, and mom and pop local grocery stores. Dollar Tree and Five Below offer lower quality and fewer products, but generally at a lower price. I wouldn’t say these stores are fierce competitors but they could steal potential revenue if located near a Dollar General. I don’t see much turmoil from Mom and Pop stores unless they have a local producer or a loyal customer advantage. The biggest risk from an investor’s perspective is the management. Since it can plant stores pretty much anywhere, it could get it in trouble if they are not placed strategically.
Valuation and Current State: DG currently has an enterprise multiple of around 15 putting it at a reasonable valuation at first glance. Valuation ratios such as P/E, P/S, P/B, ROE, and P/CF, are at reasonable values but are currently a little higher than their 5 year average. The debt is something to pay attention to. When looking at the debt to EBITDA ratio, we see something close to 0.5, which is reassuring. With the amount of FCF the company creates, it can pay down debt if needed to be. The company offers a dividend that is only a small portion of net income - around 14%. The dividend has consistently increased over the years. The highlight of this company is the growth over the past few years and projected future growth. The growth levels are seen in the net income as well; around 14% over the past 5 years and are projected to be the same, if not better. Lastly, the company has consistently bought back shares over the years which is always a good sign.
Final Thoughts: With the simple business model, I see the growth projections staying on the track. Since the industry niche that it’s in isn’t incredibly attractive; I don’t see competitors interfering. I’m drawn to unpopular companies and industries so you could say I’m naturally drawn to this pick. Especially with the consistency I see in the financial statements, I would like to see a correction before taking on a position but overall I like this pick.
Links:
https://www.morningstar.com/stocks/xnys/dg/valuation
https://finance.yahoo.com/quote/DG/key-statistics?p=DG
https://www.gurufocus.com/stock/DG/summary?search=dg
https://www.fool.com/investing/2021/01/06/better-buy-costco-vs-dollar-general/
https://www.dollargeneral.com
https://finance.yahoo.com/news/why-dollar-general-analyst-turning-195628496.html
https://simplywall.st/stocks/us/retail/nyse-dg/dollar-general/news/is-dollar-general-nysedg-using-too-much-debt
https://simplywall.st/stocks/us/retail/nyse-dg/dollar-general/news/if-you-like-eps-growth-then-check-out-dollar-general-nysedg/amp
Monday, February 1, 2021
PulteGroup (PHM)
The company: PulteGroup (PHM) is large cap public company that operates in the development and construction business. The company was founded in 1956 and became public in 1972. Since then, PHM has acquired a handful of construction companies. The company primarily operates in the residential portion of the industry; they buy land, develop it, and build on it. The types of construction vary, but primarily include homes, townhouses, duplexes, and condominiums. They also assist customers with financing. From what I can see, they build high quality homes that their customers are happy with.
Advantages: With interest rates as low as they are, one could say the Federal Reserve is PHM’s greatest advantage. Ever since the FR lowered rates back in March of last year, this has allowed buyers to borrow money at incredibly cheap rates. Low borrowing rates are a catalyst for home buying. I don’t see these rates changing, especially with the economy still recovering from COVID-19. There’s still a lot of development to do in the US; as long as there are reasonable rates, people will be buying houses. From what I can tell, they have a good reputation as home builders and a strong customer base, both of which will help bring in new customers. I expect the housing market will stay strong with minimum fluctuation for the next few years.
Disadvantages: The success of this company is dictated by interest rates. Although I think the rates will be favorable for this company in the near future, I don’t like the success of a company being so depended on external factors or political factors. With the baby boomer generation getting older and the excessive amount of houses being built, I’m concerned that there will be too many houses on the market at some point. Combine that with a rise in interest rates and it could cause disturbances in the market. With the jump in excitement during the past year, I’m not confident that the trend can continue. A slow-down in the near future is reasonable to suspect.
Valuation and current state: I consider this a value stock with an enterprise multiple of 8. When observing valuation measures such as P/S, P/FCF, PEG, and P/B, all are less than the industry average and the company’s 5 year average. If this stock reverts to its mean, there will be good returns. When I look at ROE, profit margins, growth prospects, share buybacks, and their debt situation, they seem to be in great shape. When running a conservative DCF, I get double digit returns. This stock seems to check all my quantitative boxes, which doesn’t happen often.
Advantages: With interest rates as low as they are, one could say the Federal Reserve is PHM’s greatest advantage. Ever since the FR lowered rates back in March of last year, this has allowed buyers to borrow money at incredibly cheap rates. Low borrowing rates are a catalyst for home buying. I don’t see these rates changing, especially with the economy still recovering from COVID-19. There’s still a lot of development to do in the US; as long as there are reasonable rates, people will be buying houses. From what I can tell, they have a good reputation as home builders and a strong customer base, both of which will help bring in new customers. I expect the housing market will stay strong with minimum fluctuation for the next few years.
Disadvantages: The success of this company is dictated by interest rates. Although I think the rates will be favorable for this company in the near future, I don’t like the success of a company being so depended on external factors or political factors. With the baby boomer generation getting older and the excessive amount of houses being built, I’m concerned that there will be too many houses on the market at some point. Combine that with a rise in interest rates and it could cause disturbances in the market. With the jump in excitement during the past year, I’m not confident that the trend can continue. A slow-down in the near future is reasonable to suspect.
Valuation and current state: I consider this a value stock with an enterprise multiple of 8. When observing valuation measures such as P/S, P/FCF, PEG, and P/B, all are less than the industry average and the company’s 5 year average. If this stock reverts to its mean, there will be good returns. When I look at ROE, profit margins, growth prospects, share buybacks, and their debt situation, they seem to be in great shape. When running a conservative DCF, I get double digit returns. This stock seems to check all my quantitative boxes, which doesn’t happen often.
Final thoughts: This stock pick is quantitatively attractive. I can see this company being successful and I don’t see any significant changes to the industry in the foreseeable future. Yes, I’m sure some fluctuation in the housing market will occur, but nothing too crazy. I’m personally not too confident in the housing and construction industry due to a lack of knowledge, but I like this pick - especially if a correction were to occur.
Links:
https://simplywall.st/stocks/us/consumer-durables/nyse-phm/pultegroup/news/heres-why-i-think-pultegroup-nysephm-might-deserve-your-atte
https://simplywall.st/stocks/us/consumer-durables/nyse-phm/pultegroup/news/is-it-too-late-to-consider-buying-pultegroup-inc-nysephm
https://finance.yahoo.com/m/eba527c9-38f7-30dc-a131-f6b71eaad98f/2020-existing-home-sales.html
https://finance.yahoo.com/quote/PHM/key-statistics?p=PHM
https://www.morningstar.com/stocks/xnys/phm/valuation
https://simplywall.st/stocks/us/consumer-durables/nyse-phm/pultegroup/news/heres-why-i-think-pultegroup-nysephm-might-deserve-your-atte
https://simplywall.st/stocks/us/consumer-durables/nyse-phm/pultegroup/news/is-it-too-late-to-consider-buying-pultegroup-inc-nysephm
https://finance.yahoo.com/m/eba527c9-38f7-30dc-a131-f6b71eaad98f/2020-existing-home-sales.html
https://finance.yahoo.com/quote/PHM/key-statistics?p=PHM
https://www.morningstar.com/stocks/xnys/phm/valuation
Monday, January 25, 2021
Hewlett-Packard HP (HPQ) Inc.
The company: Hewlett-Packard HP (HPQ) Inc. is a large cap computer hardware company that was established in 1939. The company builds and sells personal computers, servers, hard drives, networking products, printers and software. With the industry evolving, HP is having to adapt, and luckily, it has the cash flow to do so. In recent years they have expanded into the 3D printing field and software. Although it’s classified as a computer hardware company, it’s evolving into an electrical consumer producer and SaaS company.
Advantages: A good thing about this company is the industry it operates in. Nearly 75% of the US population have a computer, and with computers lasting around four years, it puts in perspective the potential revenue just from computers. The servers, hard drives and networking products support the fast-growing cloud infrastructure. If HP keeps pushing for innovation in these products, it’ll stay prominent. One product that HP has expanded into is 3D printers. These products have really gained a ton of attraction. Something else that’s promising is their reputation in the industry. They work with a handful of large customers that keep a steady stream of revenue coming in. The world has changed since COVID. We depend on computer related products, the revenue in this industry will only grow.
Disadvantages: I think the computer industry is well established but HP has suffered before. In 2014 revenue dropped significantly due to competition. Another main product of HP are printers. I think people are trying to print less, not more. I’m not saying it’s a dying product, I just don’t think it’s one that’ll grow at a noticeable rate. Also, when it comes to printers, most people want just a basic cheap printer, not the nice expensive one. This company has the FCF to invest back into the company, but if they don’t focus on the right products, there is a chance they could see another significant drop in the revenue.
Valuation and current state: The company is currently at around an enterprise value of 8.15. When looking at other valuation measures such as P/E, P/S, ROE, it is lower than the industry average, but it’s still higher than the company’s average. From these valuation measures, it seems like an undervalued stock, and from the conservative DCF I ran, I nearly got double-digit returns. Something that I definitely liked was the consistent share buybacks and easily payable dividend that is offered. One thing that is not attractive is the negative equity. I still haven’t identified how and where in the balance sheet this is, so further investigation is needed.
Concluding thoughts: I think this stock has the potential to produce great returns. I do get concerned about how innovative this company can be. Nowadays capital is cheap, so it’s not a problem for other companies to try and expand into this industry. Although this company seems to be at a fair price, I would like to see the valuation get cheaper before a small or full position is acquired.
Links:
https://financials.morningstar.com/ratios/r.html?t=0P000002O2&culture=en&platform=sal
https://www.omen.com/us/en/omen-gaming-hub.html
https://www8.hp.com/us/en/home.html
https://finance.yahoo.com/quote/HPQ?p=HPQ&.tsrc=fin-srch
https://www.morningstar.com/stocks/xnys/hpq/quote
https://www.bustle.com/p/when-is-it-time-to-buy-a-new-computer-these-are-the-tell-tale-signs-you-need-to-say-goodbye-6457626
https://www.omen.com/us/en/omen-gaming-hub.html
https://www8.hp.com/us/en/home.html
https://finance.yahoo.com/quote/HPQ?p=HPQ&.tsrc=fin-srch
https://www.morningstar.com/stocks/xnys/hpq/quote
https://www.bustle.com/p/when-is-it-time-to-buy-a-new-computer-these-are-the-tell-tale-signs-you-need-to-say-goodbye-6457626
Saturday, January 23, 2021
Qurate Retail Group (QRTEA)
Company Advantages: The culture of the company is its greatest advantage. The customers that shop with Qurate are loyal. Amazon primarily owns web shopping, but it does lack the experience of shopping in person. I would say Qurate is a blend between physical and web-based shopping. With Qurate offering multiple platforms to shop on, it allows users to conveniently use the platform whenever. It’s also good to see the company adapt to the future. Although I am personally not a user, I hear raving reviews form their loyal customer base. The biggest issue with web shopping is the lack of human connection, Qurate changes that with its users.
Disadvantages: Although this company is unique, it still operates in an extremely competitive industry. Amazon has consumed a large portion of the available revenue and will continue to do so. With that said, I would classify Amazon and Qurate in different parts of the retail industry. Two things that worry me when it comes to this company is whether they can handle the debt that have acquired and whether the company will attract more customers to keep their revenue steady. With the competitiveness of this industry the company will have to continue to be innovative and find ways to connect to younger generations.
Valuation and Current State: At the time of writing this summary the enterprise multiple is 6.07. This is one of the reasons this company showed up when I did a value screen. When looking at other valuation measures such as P/E, P/Cash Flow, P/B, and enterprise multiple, the company is lower than its five year average and the industry average. If the company were to revert back to its mean, attractive returns would occur. When doing a conservative DCF I also arrive at attractive returns. This past year the company announced it would start buying back stock. With value stocks this is definitely a plus. When looking at the debt/equity ratio, it’s around 2. This is not ideal but with the amount of FCF the company creates it shouldn’t have a problem paying off the debt. Overall, I think this stock is undervalued.
Final Thoughts: I think the stocks discounted price is due to the lack of interest in companies like this, along with the debt this company has acquired. The biggest concern would be regarding the company being able to maintain the revenue, that’s where you’d be taking a bet. If there were a large decrease in revenue, you would be in trouble. But, the currentcash flow supports its ability to handle the debt. However, I personally like companies that are unappreciated like this; with the valuation I see, I like this investment.
Links:
https://www.morningstar.com/stocks/xnas/qrtea/quote
https://finance.yahoo.com/quote/QRTEA?p=QRTEA&.tsrc=fin-srch
https://www.qurateretailgroup.com
https://simplywall.st/stocks/us/retail/nasdaq-qrte.a/qurate-retail/news/we-think-qurate-retail-nasdaqqrte-a-is-taking-some-risk-with-its-debt
https://www.youtube.com/watch?v=4FZtdnTzAcI
Subscribe to:
Posts (Atom)