Tracking the Stock Sector of Whitehall Jewelers, Inc

Swan-Davis, Inc. (SDI) manufactures equipment for sale to large contractors. The company was founded in 1976 by Tom Stone, the current chairman, and it went public in 1980 at $1 per share. The stock currently sells for $15, Stone owns 14 percent of the shares, and other officers and directors control another 13 percent. The industry is cyclical, and competition is strong, so profits are some-what unstable. Tables 1, 2, and 3 provide historical balance sheets, income statements, and ratios for the company for the period 1994–1996, Table 4 provides industry average data for 1994-1996, and Table 5 provides one security analyst’s forecasted data for the company based on assumptions

Price earnings ratio is a valuation ratio of a company's current share price compared to its per-share earnings. Coca-Cola has a lower P/E ratio than Pepsi Co. The industry average for P/E ratio is 21.1. This means neither of the companies beat the industry average ratio. Between the

Google and Yahoo have a calculation of the P/E but both are different being $12.22 and $11.96 respectively at this current point in time. The main reason for the current difference in P/E is the discrepancy in earnings per share of $.10. To find historical P/E ratios for Target i have to do a google search and it brought up a site call YCharts. For the year of 2016 they do not give you an average but plotting a few point and finding an average I came up with about $12.84 for a ten year chart I would have had to sign up for a free trial but 2016 looked about average compared to pre 2014 when the stock was on a quick rise. Looking at a rough five year average of $17.97 the $11.92 is really low. In other words the current P/E is on the low side which may indicate a time to buy.

Macy's operates primarily in the retail industry with operations globally. As a retail franchise, the performance of the stock can be attributed to shopping behavior within the broader economy. Currently, the economy is revering from the greatest recession since the great depression. As such, consumers are slowly purchasing luxury and higher margin items from Macys. This indicates a shift in consumer sentiments, which I believe, will prevail long after the futures contracts become due. In fact, as the economy recovers, Macys will benefit in two profound ways. First, its earnings will increase substantially as consumers begin to purchase more products. Furthermore, the valuation placed on those earning will increase. This valuation can be attributed to the P/E ratio mentioned earlier. If this

An interesting statistics that I came across was that the company had decreased their cash and cash equivalents by about 35% from 2013 to 2016. The yearly increases in fixed assets, intangible assets, and other assets have contributed to their 8% growth in total assets from 2013 to 2016. While Dick’s accounts payable have been increasing, their short-term/long-term debt has been decreasing the past 4 years, which is a good indicator of investing. With no expenses in miscellaneous stocks, minority interest, or other liabilities, Dick’s proves that they are handling their finances correctly and carefully. Financial ratios are a swift reliable indicator of a company’s specific performance. Dick’s current ratio is a little high, which could potentially mean they are holding too much cash while it could be utilized in other areas. While their quick ratio has been decreasing over the past 4 years, it is still at 24%, which is respectable. EPS & Dividends Per

The P/E ratio that investors are mostly concerned with the 12 month forward P/E. In terms of forward P/E’s Lowes is

The four stocks diversified across different industries that I have chosen are McDonald’s, Target, Honda Motor Co., Ltd., and Whole Foods Market. After researching each stock using Mergent Online you can see my findings in the above chart. When looking at the P/E ratio of the chosen stocks I believe that each of them varies from being underpriced, fairly priced, or overpriced when compared to the peer and the industry as a whole for each. For McDonald’s I feel that this stock is fairly priced. Yesterday the stock price was 158.90 and 30 days ago it was 153.96 and the P/E ratio is 26.0492 and if I purchased 100 shares I would have a 3.2% share return. This would mean that the company’s growth looks good and the P/E ratio is fairly priced we have to continually look at the interest rate, stability of the firm, and expected growth.

When looking to diversify into the mining sector BHP stood out for a couple reasons. Firstly the company has a strong P/E ratio with the last released data showing 32.48. This meant BHP was producing strong earnings per share based on their current share price. In conjunction with this BHP had stable debt to equity, showing a stability in their capital structure and therefore we chose to invest in BHP as a value investment as we determined their current share price was undervalued.

Most rely on valuation heuristics involving P/E, PEG, and price-to-sales . The simplicity of using heuristic triggers dependence on valuation heuristics as an alternative for the fundamental valuation. P/E, PEG, and price-to-sales need few variables and use simple formulas. Therefore , the estimates are rather perceptive THUS subject to bias. The cause of these biases arise from weak assumption made towards P/E, PEG, and price-to-sales inputs.

Our telemedicine company's PE ratio is high and may indicate investors' expectations about the company's earnings potential. With a higher PE, investors have high expectations for our telemedicine’s future growth. Our fast-growing company has a higher PE ratio than with a mature company so our company will need to increase its revenues in order to maximize its value. To do this they will need to increase the volume of patients and activities to maximize its profits in a firm equilibrium, where our average cost is at minimum and the marginal cost and marginal revenue are equal. To increase sales that will result in profits, there must be a market for increased telemedicine and the company must keep its overhead costs properly controlled

4) Company Q’s current rate of return (ROE) is 14%. It pays out (payout ratio) half of its earnings as dividends. Current book value is $50 per share. Book value per share will grow as Q reinvests earnings.

Medical Instrument Supplies is in the declining stage because its price to book ratio is negative. Whereas for Electric Utilities’ price to book ratio is positive, which lead us to conclude that Electric Utilities is in the growing stage. The differences do make sense; however, Medical Instrument Supplies’ price to book ratio is deliberately low compare to other companies that are going through the declining stage in the industry life cycle. Therefore, Medical Instrument Supplies stock is overvalued; whereas Electric Utilities stocks undervalued. There is an unavailability of growth opportunity and revenues for Medical Instrument Supplies which causes the industry to have a high P/E ratio. The Medical Instrument industry also has a low dividend,

The Earnings Per share in 2012 and 2013 were $2.90. This is an indicator that the company is still profitable since the ratio is a constant. The price per earnings in 2012 was 12.5 and 17.7 in 2013. A decrease in the price per share may indicate a vote of no confidence to investors. However, this can be attributed to the industry sector as well the stock.

This case follows the performance-review and financial-statement-forecasting decisions of a Value Line analyst for the retail-building-supply industry in October 2002. The case contrasts the strong operating performance of Home Depot with the strong stock-market performance of Lowe’s. Students examine a financial-ratio analysis for Home Depot that acts as a template to generate a comparable ratio analysis for Lowe’s. The students’ ratio analysis is designed to build intuition with respect to interpreting individual ratios as well as ratio inter-relationships (e.g., the DuPont framework). The historical-performance comparison suggests that investors are skeptical of the ability of

The stock trades for 30 times projected 2001 earnings of $1.92, high compared to its long-term profit-growth projection of 13% annually. How can a company, with less than 2% annualized sales growth over the last five years keep that valuation? By boosting profit margins, gobbling market share, and buying back plenty of its stock. Higher margins and a smaller share base will boost both earnings and return on equity. Colgate controls 35% of the U.S. toothpaste market, up from around 31% a year ago (p.4).