NYSE:COL
$53.49
(2/9 1:44PM)
+2.4%
| Open | $52.73 |
Mkt Cap | $8.2 Billion |
| High | $53.61 |
52Wk High | $57.63 |
| Low | $52.43 |
52Wk Low | $27.67 |
| Volume | 535,965 |
Avg Vol 10D | 915,700 |
Ockham's Rating/Recommendation Summary
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COL Revenue
As a value investing shop, we are interested in seeing how COL'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 2.49x and the low end of the range at 1.59x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for COL of 1.87x is slightly under its historical average. This level of Price to Sales gives us a fairly neutral position on the COL shares. We would like to see a drop in the Price to Sales ratio just a little bit more (given current sales figures) before we would become more positive on a Price to Sales basis. Such a drop would increase the attractiveness of the stock but, as always, would need to be considered in the context of all other valuation factors.
COL 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 COL is 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 COL. For example, COL's Cash Earnings ratio per share has fluctuated between 10.34 and 16.20 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where COL is with respect to prior business periods.
With a historical average Cash Earnings ratio of 13.27, the current Cash Earnings ratio of 11.68 is a positive opportunity for value in the Ockham view. Naturally, we would love to see a deeper value opportunity for COL, 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 COL 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 COL is trading currently (latest close price of $52.91).
COL Dividends
While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company.
In COL’s case, the estimated annual dividend is $0.96 resulting in a current dividend yield of 1.81%. Similar to our review of Sales and Cash Earnings per share, we evaluate dividend yields from COL against the historic high and low levels over the past 10 years. The highest dividend yield from COL over this period was 3.48% while the lowest dividend yield was 0.33% COL is not making us feel all that confident when their current dividend yield is below the historical median by 4.99%.
Yearly Highs and COL Recently Discussed on Fast Money
Stick with it or dump it? Fast Money discusses what an abnormally high price means for COL's investors. Take note of Ockham's valaution on the stock as well.
Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; COL has received less coverage from the financial media in business television and blogs. Based on our methodology, Rockwell Collins, Incorporated should hold some appeal to value investors as we view it as Undervalued.
“… They gave guidance at the aerospace conference earlier this month, and the collins, we've had the ceo on a couple times, ROCKWELL COLLINS, we've not a lot of people do. . …”
Valuation and Rockwell Collins, Incorporated Mentioned on Fast Money
Rockwell Collins, Incorporated was talked about in relation to their valuation on Fast Money, and you can see what the pundits are saying with RazorWire.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Rockwell Collins, Incorporated has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. At present, Ockham has a valuation stance of Undervalued on COL, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue.
“… The best aerospace defense trade has been ROCKWELL COLLINS. 52-week high today. Valuation somewhat fair. The reported decent quarter, operating margins close to 20% I still go... …”
Rockwell Collins, Incorporated (COL) Discussed on CNBC's Fast Money
Rockwell Collins, Incorporated is in the news. Find out how this impacts COL trading on Ockham Research.
Stock is up 26% on hopes of a is this iowa-based company the kind of buy warren buffett would make? Joining us ROCKWELL COLLINS ceo clay jones. >> nice to be here, melissa. >> you have spoken in the past about a potential pipeline of acquisitions that your company would be looking at but would for sale? >> no, we haven't been up for we've got a lot of strategic we spend a lot of money. We make a lot of money. We operate very well within the segments in which we are in the
“… r company would be looking at but would for sale? >> no, we haven't been up for we've got a lot of strategic we spend a lot of money. We make a lot of money. We operate very well within the segments in which we are in the …”
Rockwell Collins, Incorporated (COL) Discussed on CNBC's Fast Money
Rockwell Collins, Incorporated is in the news. Find out how this impacts COL trading on Ockham Research.
Or would this also be a potential cloud over them? >> that's a great question. The answer to that is I don't protectionism is bad for so yes, it's not going to bode well for them. General electric is a name i'll still say I personally will we talked about honeywell. But go to ROCKWELL COLLINS. We had clayton jones on the show july 30th. Talked about that stock, 42 1/2. Today it closed around 48 1/2. They have an investors conference on september 1st. They say they have plenty of excess cash, acquisitions. Again, a company I think you'd rather own is col, hon, rather than gh. >> if you own the industrial names right here you use the ism, that is the economic report that will tell you whether to stay in the game or not. As long as it sustains above 50, you want to remain long the industrial names. >> do you like them, caterpillar, honeywell, ge, parent of this network? >> ge and so many other things -- I don't own it. Not that there's anything
“… honeywell. But go to ROCKWELL COLLINS. We had clayton jones on the show july 30th. Talked about that stock, 42 1/2. Today it closed around 48 1/2. They have an investors conference on september 1st. They say they have plenty of excess cash, acquisitions. Again, a company I think you'd rather own is col, hon, rather than gh. >> if you own the industrial names right here you use the ism, that is the economic report that will tell you whether to stay in the game or not. As long as it sustains above 50, you want to remain long the industrial names. >> do you like them, caterpillar, honeywell, ge, parent of this network? >> ge and so many other things -- I don't own it. Not that there's anything …”
Rockwell Collins, Incorporated (COL) Discussed on CNBC's Fast Money
Rockwell Collins, Incorporated is in the news. Find out how this impacts COL trading on Ockham Research.
They guided down from six bucks down to a nickel. >> you're on a roll. >> i'd be taking profit. >> boeing up 9%. >> that's one you want to stay away from. These guys throw you curve balls all the time. The way you want to go is ROCKWELL COLLINS. Look what that stock did today. We had the ceo of the company on about a month or so ago. He said great things. This is where you want to be if you think boeing is going to at least stabilize. Collins has had trouble, but that's the -- >> I agree, but when you look at boeing, you have a point of reference now. You have certainty, an understanding of what's going on with the 787. You've got a nice price gap now. If you're long $48.77, that's your out. >> you know, in the old days we didn't have 24-hour trading.
“… that stock did today. We had the ceo of the company on about a month or so ago. He said great things. This is where you want to be if you think boeing is going to at least stabilize. Collins has had trouble, but that's the -- >> I agree, but when you look at boeing, you have a point of reference now. You have certainty, an understanding of what's going on with the 787. You've got a nice price gap now. If you're long $48.77, that's your out. >> you know, in the old days we didn't have 24-hour trading. …”
Rockwell Collins, Incorporated (COL) Discussed on Fox Business's Money For Breakfast
Rockwell Collins, Incorporated is in the news. Find out how this impacts COL trading on Ockham Research.
Short-term next 12 to 24 months I don't see a lot of orders coming in. If you want to look at another company, ROCKWELL COLLINS also an airspace company. >> you own that one? >> yes, I own it. >> rockwell instead of boeing. We talked about citi and general we will leave it there. Thanks a lot for coming on.
“… l we will leave it there. Thanks a lot for coming on. …”
Rockwell Collins, Incorporated (COL) Discussed on CNBC's Mad Money
Rockwell Collins, Incorporated is in the news. Find out how this impacts COL trading on Ockham Research.
Accessories, spirit makes the fuselage and propulsion systems, curtis wright for presipgz components, hexel for composite materials, and aimtech for instrument systems and ROCKWELL COLLINS which makes electronics for the planes and all of these and every one of them should get big orders once companies start getting planes, putting people to work and a lot of stocks to
“… one of them should get big orders once companies start getting planes, putting people to work and a lot of stocks to …”
Rockwell Collins, Incorporated (COL) Discussed on CNBC's Squawk Box
Rockwell Collins, Incorporated is in the news. Find out how this impacts COL trading on Ockham Research.
Company reports revenues of that was right in line. Full year guidance of 2.20 to 2.15. ROCKWELL COLLINS talks about revenues of $1.1 billion versus expectations of $1.15 billion. Depending on the guest host, larry, with fortune brands, I could say just about anything.
“… bout anything. …”
Rockwell Collins, Incorporated (COL) Discussed on CNBC's Mad Money
Rockwell Collins, Incorporated is in the news. Find out how this impacts COL trading on Ockham Research.
It was the next guy's problem? You know, it's an interesting his points, col latterlized debt obligation, is he never understood how these could be triple a rated securities. >> that's all in your >> absolutely.
“… It was the next guy's problem? You know, it's an interesting his points, col latterlized debt obligation, is he never understood how these could be triple a rated securities. >> that's all in your >> absolutely. …”
Rockwell Collins, Incorporated (COL) Discussed on CNBC's Mad Money
Rockwell Collins, Incorporated is in the news. Find out how this impacts COL trading on Ockham Research.
The percentage of each margin of sales to expand faster than its annual 75 to 100 basis points col gat got more profitable this quarter and it said in the words of karen carpenter -- we've only just begun to live >> that's right, "we've only just begun."
“… The percentage of each margin of sales to expand faster than its annual 75 to 100 basis points col gat got more profitable this quarter and it said in the words of karen carpenter -- we've only just begun to live >> that's right, "we've only just begun." …”