NYSE:CZZ
$9.51
(3/19 10:23AM)
-2.1%
| Open | $9.69 |
Mkt Cap | $1.7 Billion |
| High | $9.76 |
52Wk High | $9.90 |
| Low | $9.51 |
52Wk Low | $2.21 |
| Volume | 121,477 |
Avg Vol 10D | 1.9 Million |
Ockham's Rating/Recommendation Summary
Rating specific information requires Premium Access.
Buy Now
or
Learn More about Ockham's Features and Services.
CZZ Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 5 years. For, CZZ the high and low end of the Price to Sales per share ratios are 1.58x and 0.66x respectively.
Notice that CZZ's current Price to Sales per share ratio is 1.17x, which is slightly above its historical average. This level of Price to Sales gives us a fairly neutral position on the shares. We would like to see a drop in the Price to Sales ratio of 3% given current sales figures before we would become more positive on a Price to Sales basis. Such a drop would put Price to Sales per share in line with CZZ's weighted historical average.
CZZ Cash Earnings
As the old saying goes, "Cash is King!" We look at reported Cash Earnings, but the main emphasis of our analysis involves stripping out non-cash events such as depreciation from our cash earnings analysis. This helps us view the cash flows more clearly. Nevertheless, an analysis of Cash Earnings (both reported and otherwise) is absolutely pivotal to assessing a company's value, and currently CZZ is significantly above its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 5 years of cash earnings levels for CZZ to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 28.00 and a 8.12 low over the same period.
Therefore, at the current price of $9.39 and a Price to Cash Earnings ratio of 33.54, CZZ is significantly overvalued. This diminishes the attractiveness of CZZ until we see either a significant increase in cash earnings or a decline in price. A decline of the Price to Cash Earnings ratio of 85% is needed just to return to the historical cash earnings multiple.
CZZ Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations. As far as our investing methodology goes, it is not necessary to pay a dividend in order to get a favorable rating, so as for right now CZZ gets a neutral rating for the dividend portion of the model. As you can see, we are not receiving historical dividend information from our data provider on CZZ at this time.
