NYSE:VAL
$28.76
(3/19 4:00PM)
-1.8%
| Open | $29.41 |
Mkt Cap | $2.9 Billion |
| High | $29.43 |
52Wk High | $29.69 |
| Low | $28.76 |
52Wk Low | $19.21 |
| Volume | 1.1 Million |
Avg Vol 10D | 519,600 |
VAL 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 10 years. For, VAL the high and low end of the Price to Sales per share ratios are 1.11x and 0.78x respectively.
Notice that VAL's current Price to Sales per share ratio is 1.00x, 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 5% 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 VAL's weighted historical average.
VAL Cash Earnings
As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of VAL, Ockham views their current Cash Earnings 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 VAL 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 14.75 and a 10.30 low over the same period.
With a historical average Cash Earnings ratio of 12.53, the current Cash Earnings ratio of 11.25 is a positive opportunity for value in the Ockham view. Naturally, we would love to see a deeper value opportunity for VAL, 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 VAL 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 VAL is trading currently (latest close price of $29.26).
VAL Dividends
When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for VAL to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis.
The estimated annual dividend for VAL is $0.64 producing a current dividend yield of 2.19%. Much like our evaluation of Sales and Cash Earnings per share, we review dividend yields from VAL against the historic high and low levels over all available dividend history. Because dividends are a decision made exclusively by management, we view a healthy and rising dividend as a sign of confidence and strength. The highest dividend yield from VAL over previous years was 4.15% while the lowest dividend yield was 1.12%. It is never a good sign for a company to pay significantly lower dividends, in this case 16.89% below the median yield. Although, dividends are a relatively small portion of our analysis framework, we still see this as a negative factor.
The Valspar Corporation (VAL) Discussed on CNBC's Mad Money
The Valspar Corporation is in the news. Find out how this impacts VAL trading on Ockham Research.
>> caller: hey, jim, my question is on val montmont industries. >> we're talking about valmont, I got to be sure I got the right one. Not VALSPAR! Other people get tired on I bear down. Valmont is towers and utility markets. That's the good one, fit was VALSPAR, I would say we can't even buy paint companies. I like quanta, too. I am warming up to sna which is another really good one.
“… ALSPAR, I would say we can't even buy paint companies. I like quanta, too. I am warming up to sna which is another really good one. …”
The Valspar Corporation (VAL) Discussed on CNBC's Mad Money
The Valspar Corporation is in the news. Find out how this impacts VAL trading on Ockham Research.
Monitorly there's going to be fixups in foreclosure. Going to the lowe's conference big business for them because it's cosmetic and the cosmetic stuff is at lowe's it's not heavy contractor. VALSPAR not that great a quarter. Sherman williams better quarter. I think that's a decent play. Thank you very much. >> jack from westchester. Boo-yah! >> boo-yah, jack. >> my question is about ym. They're in protection.
“… r. I think that's a decent play. Thank you very much. >> jack from westchester. Boo-yah! >> boo-yah, jack. >> my question is about ym. They're in protection. …”
The Valspar Corporation (VAL) Discussed on CNBC's Mad Money
The Valspar Corporation is in the news. Find out how this impacts VAL trading on Ockham Research.
Expecting new home sales and construction to bounce back, and even if they do I want to know because people are going to be focused in renovating and adding on to existing homes, do you think there's value in that sector in stocks like VALSPAR or cnh? I've been going with this housing bottom, and i've got to tell you looks like i'm going to be late judging by the data we saw today. But here's the point. I do not see a renaissance in house building.
“… e been going with this housing bottom, and i've got to tell you looks like i'm going to be late judging by the data we saw today. But here's the point. I do not see a renaissance in house building. …”
The Valspar Corporation (VAL) Discussed on Fox Business's Happy Hour
The Valspar Corporation is in the news. Find out how this impacts VAL trading on Ockham Research.
In this down connie? Designers toned things down at new york's fashion week. We're joined by carmen mark val very who did just that. Designed the lovely ensemble thank you so much. I walked through the bar. Everyone said, whoa. >> good sign. Rebecca: I need to wear these dresses more often. >> we can arrange that.
“… ed to wear these dresses more often. >> we can arrange that. …”
The Valspar Corporation (VAL) Discussed on CNBC's Fast Money
The Valspar Corporation is in the news. Find out how this impacts VAL trading on Ockham Research.
The fundamentals, right now, dylan matter more than ever. You talk about the first quarter where the consumer is so constrained and the earnings outlocks are so bleak going forward most importantly, the level of val level three assets and the value of house prices every day when we wake up they decline more and more and the level of uncertainty, surrounding how that comes. >> are we diluting ourselves to
“… se prices every day when we wake up they decline more and more and the level of uncertainty, surrounding how that comes. >> are we diluting ourselves to …”
The Valspar Corporation (VAL) Discussed on Fox Business's Fox Business
The Valspar Corporation is in the news. Find out how this impacts VAL trading on Ockham Research.
Underwater meaning the value of the home is less than the mortgage value in many instances you needed equity of at least 20%, the value of the loan couldn't be more than 80% of the home's val the government is going to change all that. The goal is with this plan one leg of it to refinance up to five million homeowners currently underwater or close
“… is plan one leg of it to refinance up to five million homeowners currently underwater or close …”
The Valspar Corporation (VAL) Discussed on CNBC's Closing Bell
The Valspar Corporation is in the news. Find out how this impacts VAL trading on Ockham Research.
The securitization that creates much more standards. Everybody keeps talking about we don't know how to value these assets. Carol bonavich who's in the middle of trading them says they are being val yoould just at a price that's too high for people but she is there is trading in mortgage-backed securities, million dollars here in there.
“… e is there is trading in mortgage-backed securities, million dollars here in there. …”
The Valspar Corporation (VAL) Discussed on CNBC's Fast Money
The Valspar Corporation is in the news. Find out how this impacts VAL trading on Ockham Research.
>> it's snuggy, by the way. >> called the snug yo. >> that's a different version of the snuggie. >> I don't know. >> you guys should test that >> pete and I may do that later. >> val era. What's going on with the oil >> keep in mind up 11% of the gasoline prices have seemed to the refiner trades is one of those trades in '08 you to sell
“… prices have seemed to the refiner trades is one of those trades in '08 you to sell …”
The Valspar Corporation (VAL) Discussed on CNBC's Squawk Box
The Valspar Corporation is in the news. Find out how this impacts VAL trading on Ockham Research.
On wall street? I mean, I worked for jamie and steve black. That actually enhances valuation and acceptability on the street. It doesn't hurt your image. It kind of brings it to earth already by year own val igs. >> I think so, but i'm just saying credibility, you know, means a lot, but, you know, dick fold had credibility, too. >> is it too far to say that
“… lity, you know, means a lot, but, you know, dick fold had credibility, too. >> is it too far to say that …”