NYSE:DLM
$11.75
(2/9 3:14PM)
+2.4%
| Open | $11.61 |
Mkt Cap | $2.3 Billion |
| High | $11.75 |
52Wk High | $12.00 |
| Low | $11.53 |
52Wk Low | $6.80 |
| Volume | 862,255 |
Avg Vol 10D | 1.3 Million |
Ockham's Rating/Recommendation Summary
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DLM Revenue
As a value investing shop, we are interested in seeing how DLM'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 0.73x and the low end of the range at 0.47x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for DLM of 0.61x is somewhat above its historical average. As such, the current Price to Sales ratio suggests a neutral share price forecast. In order for us to become more positive about DLM we would need to see a drop in the Price to Sales ratio of 1% given current sales per share levels in order to return to its historical weighted average.
DLM Cash Earnings
Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. DLM is significantly below its historical average multiple of Cash Earnings. Looking at the last 10 years we can get a good understanding of what investors have grown to expect from DLM. For example, DLM's Cash Earnings ratio per share has fluctuated between 6.46 and 9.94 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where DLM is with respect to prior business periods.
So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for DLM? From the Ockham perspective, we are looking specifically at DLM to see if the market is recognizing the huge disparity between DLM's past stock price to Cash Earnings ratio to today's levels. At a difference of 22% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at DLM. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.
DLM Dividends
A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.
When reviewing dividend yields for DLM, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management's confidence in the company. DLM’s estimated annual dividend is $0.20 resulting in a current dividend yield of 1.74%. The highest dividend yield from DLM over recent history was 3.17% while the lowest dividend yield was 0.00%. Therefore, the current dividend yield of DLM is above the historical median by 9.78%. This is definitely a positive in our view.
DLM's Debt Load is the Topic on Closing Bell
In the aftermath of the credit crisis, debt is a key area investors should understand. A recent news story on Closing Bell talks about DLM's debt load.
Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Del Monte Foods Co will perform just about the same as the index. We consider DLM as Undervalued at the current price of $11.71. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, DLM has been less covered in the news compared to the rest of our universe of stocks.
“… And productivity and lower all behind the credit rating upgrade for dlm, DEL MONTE not fresh del monte. The canned food people and the pet people. > > thanks very much for that ... …”
News on DLM From the Pundits on Fox Business
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on DLM from Fox Business.
Based on our methodology, Del Monte Foods Co should hold some appeal to value investors as we view it as Undervalued. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. Ranking all stocks in terms of news coverage offers some interesting data. In the case of DLM, it is getting significantly more attention in recent news coverage than we are used to seeing.
“… DEL MONTE has been a very, very solid participant in the credit markets. We have a good reputation there. And we are able to successfully execute any offerings we have in. …”
Countdown to the Closing Bell: Discussion of DLM's Earnings
Any suprise in earnings can cause a major swing in stock prices, so we are always on the lookout for the freshest news available for earnings reports or expectations.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, DLM has been less covered in the news compared to the rest of our universe of stocks. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Del Monte Foods Co will perform just about the same as the index. We consider DLM as Undervalued at the current price of $11.26. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.
“… DEL MONTE FOODS in the green. Reporting second quarter earnings rose 24% on higher pricing combined with the food company gave an upbeat full year profit target. …”
Interested in DLM? See What the Pundits Said on Closing Bell
The latest news on Closing Bell in regards to DLM came through on RazorWire recently.
Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Del Monte Foods Co will perform just about the same as the index. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, DLM has been less covered in the news compared to the rest of our universe of stocks. We consider DLM as Undervalued at the current price of $11.34. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.
“… DEL MONTE FOODS reporting second-quarter results. Record numbers. The previous year to $63 that was 31 cents a share. …”
Earnings Discussion for Del Monte Foods Co on Countdown to the Closing Bell
The name of the game in business is profit, and we always pay attention for DLM news as it relates to earnings.
At present, Ockham has a valuation stance of Undervalued on DLM, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards DLM and think that it will generally perform in-line with the S&P 500. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Del Monte Foods Co has actually sunk a bit in comparison to the others.
“… DEL MONTE, another name that reported the earnings today. Strong at the top line growth for DEL MONTE. People are buying food. Maybe not buying clothes but buying food. . …”
Squawk On The Street: What Did Del Monte Foods Co Do in After Hours?
Something is causing Del Monte Foods Co to be a little more active in post market trading, and it was covered by Squawk On The Street recently.
Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Del Monte Foods Co will perform just about the same as the index. We consider DLM as Undervalued at the current price of $11.66. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, DLM has been less covered in the news compared to the rest of our universe of stocks. Check the news on this stock because there is a catalyst that has allowed this stock to advance 6.40% today.
“… Bottom of the heap, family street accounts on them up 4%. It's down 7%. Was down 10%. The worst. DEL MONTE FOODS out after the close with better than expected second quarter r... …”
Del Monte Foods Co EPS: A Hot Topic on Mad Money
Whenever news breaks regarding earnings or earnings per share data, we pay close attention.
>> caller: rainy day looking forward tie sunny day boo-yah. >> all right. A little weather forecast never hurt neb. An al roker boo-yah. >> caller: i'm interested in picking up DEL MONTE FOODS, symbol dlm. They've recently updated their eps guidance for fiscal year 2010 from 80 cents to 92 cents. Jim, you haven't talked about DEL MONTE. For an inexpensive play and p/e which seems to be cheap for its what is your take? >> my take is my bad. Mike, you bring me an idea that I have not talked about for at least 50%. I think you have a winner. Dlm fits a lot of what I like. I wish the yield were a little bit higher at 1.9. But that's a consistent, good you can put away, keep checking,
“… caller: i'm interested in picking up DEL MONTE FOODS, symbol dlm. They've recently updated their eps guidance for fiscal year 2010 from 80 cents to 92 cents. …”
Del Monte Foods Co (DLM) Discussed on Fox Business's Countdown to the Closing Bell
Del Monte Foods Co is in the news. Find out how this impacts DLM trading on Ockham Research.
Particular changing their forecast for how much it might fall from 5.5%, versus 7%. Global consumption. China, great news. According to the ceo, up 4%. It helped the dow all day then there is DEL MONTE. DEL MONTE is soaring. New high, new 52-week high see how it's faring. A great quarter. Great outlook. Canned foods, cutting cost. Pets, doing great. This has been a winner as well. We watched gold approaching the $1,000 what mark. It's interesting, we were at kept going up and down around the 8300, ma. We seem to do much of the same around 9300 mark. It seems to be a place where the market is settling. Then maybe building a bottom to take off. >> dagen: thank you for that. On to shibani joshi who is watching technology stocks
“… how it's faring. A great quarter. Great outlook. Canned foods, cutting cost. Pets, doing great. This has been a winner as well. We watched gold approaching the $1,000 what mark. It's interesting, we were at kept going up and down around the 8300, ma. We seem to do much of the same around 9300 mark. It seems to be a place where the market is settling. Then maybe building a bottom to take off. >> dagen: thank you for that. On to shibani joshi who is watching technology stocks …”
Del Monte Foods Co (DLM) Discussed on Fox Business's Fox Business
Del Monte Foods Co is in the news. Find out how this impacts DLM trading on Ockham Research.
Shaping up to be a day we cross the dow unchanged line 100 times. We did that. 108 times yes we crossed the unchanged line. Makes it hard. Look at the movers and how they're faring. DEL MONTE, new high. $11.61 is the high today. Up 7.5% on the move. Beating the street. Good news at the can and pet food and the names like norfolk southern gettingup grade and boost to to transports as well. A few names we're watching on the day of uncertainty. We will see which way we end. With up arrows look how the nasdaq composite is doing. >> thank you, nicole. Up arrows over here as well. Single digit gains up 7 points on the sideways trading day. Just over $1 billion trading that's light for a given day.
“… ng the street. Good news at the can and pet food and the names like norfolk southern gettingup grade and boost to to transports as well. A few names we're watching on the day of uncertainty. We will see which way we end. With up arrows look how the nasdaq composite is doing. >> thank you, nicole. Up arrows over here as well. Single digit gains up 7 points on the sideways trading day. Just over $1 billion trading that's light for a given day. …”
Del Monte Foods Co (DLM) Discussed on Fox Business's Fox Business
Del Monte Foods Co is in the news. Find out how this impacts DLM trading on Ockham Research.
Managers might be getting in to scoop this up. The government owning one-third of citigroup. Everybody knew about it but approving this increase in shares, you can see it is getting a top on this stock. The financials overall have been doing particularly well today. Last but not least, DEL MONTE, for all you fans out thereof capped fruit, canned foods, milk bone, quarterly profits beat the they raised their outlook. They've been cutting costs and doing well with those canned goods and the pet foods as well. Certainly DEL MONTE's been a winner, up nearly 10%. Pepperoni another big one. >> brian: pepperoni, haven't heard that in a while. The president taking his healthcare reform to a joint session in congress. Keep in mind, this kind of joint session is usually for things like the state of the union or declaring war. A big deal. Is the president going a bit our next guest says yes, mark stevens, author of the book "your marketing sucks."
“… well today. Last but not least, DEL MONTE, for all you fans out thereof capped fruit, canned foods, milk bone, quarterly profits beat the they raised their outlook. They've been cutting costs and doing well with those canned goods and the pet foods as well. Certainly DEL MONTE's been a winner, up nearly 10%. Pepperoni another big one. >> brian: pepperoni, haven't heard that in a while. The president taking his healthcare reform to a joint session in congress. Keep in mind, this kind of joint session is usually for things like the state of the union or declaring war. A big deal. Is the president going a bit our next guest says yes, mark stevens, author of the book "your marketing sucks." …”