NYSE:HNZ
$47.32
(3/16 4:29PM)
+1.2%
| Open | $47.06 |
Mkt Cap | $14.8 Billion |
| High | $47.38 |
52Wk High | $46.77 |
| Low | $46.85 |
52Wk Low | $32.65 |
| Volume | 2.5 Million |
Avg Vol 10D | 1.8 Million |
Ockham's Rating/Recommendation Summary
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HNZ Revenue
As a value investing shop, we are interested in seeing how HNZ's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 1.81x and the low end of the range at 1.35x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for HNZ of 1.42x is below its historical average only slightly. So, while not a huge positive for our analysis, we do feel it is worth noting that HNZ does look a bit undervalued on a Price to Sales basis, all other factors being equal. However, if the Price to Sales ratio drops further, Ockham Research is likely to become more bullish on this stock.
HNZ Cash Earnings
Looking at HNZ specifically in their Cash Earnings capabilities, Ockham views HNZ as below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for HNZ 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 16.17 and a 12.08 low over the same period.
With a historical average Cash Earnings ratio of 14.12, the current Cash Earnings ratio of 12.86 is a positive opportunity for value in the Ockham view. Naturally, we would love to see a deeper value opportunity for HNZ, but to get there one of two things must occur (or both). Either the stock price must decline further to increase the long term buying opportunity, or the management at HNZ needs to earn more cash. If either, or both, of these occur, then we could see a significant gap emerge between what investors were willing to pay for in the past, and where HNZ is trading currently (latest close price of $46.41).
HNZ 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.
Comparable to our analysis of Sales and Cash Earnings per share, we examine dividend yields from HNZ against the historic high and low levels over an available data range. Because HNZ has an established history of paying a dividend to shareholders, there is value in comparing recent dividends to historical dividends. In HNZ’s case, the estimated annual dividend is $1.68 producing a current dividend yield of 3.62%. The highest dividend yield from HNZ in recent history was 5.45% while the lowest dividend yield was 2.71%. The current dividend yield is below the historical median, which is slightly off-putting. We are a bit adverse to HNZ from this valuation metric.
H.J. Heinz Company Was Talked About by Zero Hedge
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to H.J. Heinz Company.
H.J. Heinz Company receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. Ranking all stocks in terms of news coverage offers some interesting data. In the case of HNZ, it is getting significantly more attention in recent news coverage than we are used to seeing. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… RECENT RATING ACTIONSNORTHERN TRUST CORP (NTRS)NRG ENERGY INC (NRG)SUPERVALU INC (SVU)CLIFFS NATURAL RESOURCES (CLF)HJ HEINZ CO (HNZ)POTASH CORP OF SASKATCHEWAN (POT)SIRIUS XM ... …”
News on Earnings Per Share for HNZ on The Call
Whenever news breaks regarding earnings or earnings per share data, we pay close attention.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, H.J. Heinz Company has actually sunk a bit in comparison to the others. The Ockham valuation currently has a Fairly Valued stance on HNZ because it trades within the price range that we would expect given current market conditions and fundamentals.
“… 1 billion is bigger than alcoa and closing in on HEINZ and kroger. It trades at 11 times estimated sales and 47 times this year's estimated earnings per share of > > …”
More News Than Normal on HNZ from Closing Bell
Something important is going on with HNZ today, as it is getting a lot of attention on business television and influential blogs.
The Motley Fool CAPS data suggests that investors believe H.J. Heinz Company will beat the market in the foreseeable future. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on HNZ. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, HNZ has been less covered in the news compared to the rest of our universe of stocks.
“… Now you usual lie don't talk about hyatt and HEINZ in the same. Together? Well, they both came out and said their overseas' business is better than their u. S. Business. …”
A View of HNZ's Growth on Power Lunch
Growing sales is a great sign for investors, whereas falling sales is a significant sign of trouble.
The Motley Fool CAPS data suggests that investors believe H.J. Heinz Company will beat the market in the foreseeable future. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, HNZ has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on HNZ.
“… The united states, as you point out, had good, strong volume growth in the quarter, and also in the uk we've come out with a new integrated campaign called it has to be HEINZ, ... …”
Look Out for H.J. Heinz Company: Its Very Active in the News
We are observing a lot of attention being paid to HNZ in the news, so if you hold the stock you may want to take a look at what is going on.
H.J. Heinz Company receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; HNZ has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… HEINZ posting better than expected results helped by growth in emerging one-year chart of the company. One year performance up 33%. It's down 1 2/3% in the trading session. …”
Emerging Markets and HNZ Covered on Power Lunch
H.J. Heinz Company and an emerging market growth strategy were discussed recently on HNZ.
H.J. Heinz Company receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; HNZ has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… HEINZ posting an earnings beat on the emerging love of ketchup in emerging markets. As one of the largest consumer food producers, is there any love loss from washington and its ... …”
Holding HNZ Stock? See What Is Being Discussed on Power Lunch
The latest news from Power Lunch on HNZ is available through Ockham's news analytics platform RazorWire.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, H.J. Heinz Company has actually sunk a bit in comparison to the others. The Ockham valuation currently has a Fairly Valued stance on HNZ because it trades within the price range that we would expect given current market conditions and fundamentals. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.
“… HEINZ, out with earnings today. Sales up for the quarter and its 5-week high. We'll catch up with HEINZ cfo. First on cnbc. > > > all that glitters is nnumont mining. …”
Squawk On The Street Talks Cash Flow and HNZ
The latest cash flow information from HNZ was covered on Squawk On The Street recently, and investors should be interested in anything that affects their ability to generate cash.
The Ockham valuation currently has a Fairly Valued stance on HNZ because it trades within the price range that we would expect given current market conditions and fundamentals. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, H.J. Heinz Company has actually sunk a bit in comparison to the others.
“… That's really what's boosting HEINZ talked about a lot of they beat by a penny. Overseas market very, very strong. Also want to point out free cash flow was a big boost and ... …”
Check Out Squawk On The Street and News on HNZ
The latest news from Squawk On The Street on HNZ is available through Ockham's news analytics platform RazorWire.
The Motley Fool CAPS data suggests that investors believe H.J. Heinz Company will beat the market in the foreseeable future. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, HNZ has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on HNZ.
“… HEINZ posted $231 million profit. A lot of ketchup. > > futures are sad. > > part of the reason for the sadness was an unexpected jump in unemployment claims. > > …”
News Breaking on H.J. Heinz Company on Squawk On The Street
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on HNZ from Squawk On The Street.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, HNZ has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on HNZ. The Motley Fool CAPS data suggests that investors believe H.J. Heinz Company will beat the market in the foreseeable future.
“… near and dear to our heart, tyson, hormel, sara lee, HEINZ, food stocks trading near one-year highs. > > quirky little thing that could have big implications for. …”