NYSE:DV
$58.24
(2/9 12:36PM)
-2.9%
| Open | $60.11 |
Mkt Cap | $4.3 Billion |
| High | $60.35 |
52Wk High | $63.80 |
| Low | $57.86 |
52Wk Low | $38.19 |
| Volume | 923,758 |
Avg Vol 10D | 1.6 Million |
Ockham's Rating/Recommendation Summary
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DV 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, DV the high and low end of the Price to Sales per share ratios are 3.35x and 1.88x respectively.
Notice that DV's current Price to Sales per share ratio is 3.27x, which is significantly above its historical average. This places DV at the upper end of its historical range relative to sales per share and makes it difficult to suggest an attractive price outlook. At current sales per share levels, we would need to see a decline in the Price to Sales ratio of 25% merely to return DV to its historical average.
DV 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 DV, 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 DV 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 24.52 and a 13.71 low over the same period.
So what does a Cash Earnings ratio below the historical norm mean for DV? Generally, DV's investors have paid slightly higher stock prices for this level of Cash Earnings, which bodes well as a return to historical norms is statistically likely. However, it is never a guarantee that history gives us proper direction, particularly in fluctuating market cycles. So by utilizing a long term view and incorporating other areas of analysis (like Sales, Dividends, and management analysis), each investor can gain a more complete view of DV. Remember, that the average Cash Earnings level for DV has been 19.12, so the current Cash Earnings level of 18.24 is a positive in our view, but by no means is it overwhelming.
DV 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 DV’s case, the estimated annual dividend is $0.20 resulting in a current dividend yield of 0.32%. Similar to our review of Sales and Cash Earnings per share, we evaluate dividend yields from DV against the historic high and low levels over the past 10 years. The highest dividend yield from DV over this period was 0.52% while the lowest dividend yield was 0.00% It's hard not to notice that DV pays a current dividend yield that is 23.08% above the historical median. This peaks our interest since our analysis looks favorably upon dividend yields that are greater than the historical median.
DV's Earnings Were Talked About on Power Lunch
In our methodology at Ockham we weight earnings performance heavily, so we always pay attention to earnings news coming from legitimate sources like Power Lunch.
The Ockham valuation currently has a Fairly Valued stance on DV because it trades within the price range that we would expect given current market conditions and fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, DeVry Inc. has actually sunk a bit in comparison to the others. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see DeVry Inc. underperforming.
“… But DEVRY is a high-quality company, focusing on the programs where there's an offbalance between the amount of cost of education and the earnings premium that you get from re ... …”
Squawk On The Street: What is Happening with DeVry Inc. Now?
The latest news on Squawk On The Street in regards to DV 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 DeVry Inc. will perform just about the same as the index. Our valuation of DV has become less favorable recently, and we have seen it necessary to downgrade the stock. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, DV 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 DV.
“… DEVRY down here today ahead of a department of education legislative update. There's also default rate data. Aig, the best performer today in the s&p 500. …”
DV's Back in the News After More than a Month on Countdown to the Closing Bell
Shares taking a hit. After "barron's," in fact "barron's" is hurting, after "barron's" says the education sector may come under increased scrutiny for the enrollment practices. DEVRY is down 4%. But those names along with apollo that have done well in the recession as people go back to work to learn new it DEVRY is hurt to the tune of 4%. >> this is unbelievable. Watching the sector to sector, with all up arrow I know you were mentioning we followed craft and we've been following cadbury deal, whether or not that would we've been watching g.E. And
“… recession as people go back to work to learn new it DEVRY is hurt to the tune of 4%. >> this is unbelievable. Watching the sector to sector, with all up arrow I know you were mentioning we followed craft and we've been following cadbury deal, whether or not that would we've been watching g.E. And …”
DeVry Inc. (DV) Discussed on CNBC's Closing Bell
DeVry Inc. is in the news. Find out how this impacts DV trading on Ockham Research.
Interesting things is that if you're getting to the end of your unemployment benefits, a lot of states will extend them if you go back to school. So we're seeing increased enrollment over the past year or so in companies like DEVRY and esi, which is itt education. What you're seeing there, if you're seeing a fairly low pe, and a stock that's probably got a 15% to 20% run, I think, as we see the people come back to these stocks, and to school. >> keep that chart of DEVRY up. What impressed me is your thesis is being borne out. Their undergraduate enrollment increased 22% year over year. August 18th or 19th they reported this. Given the good fundamental news which you're noting here, why aren't we getting a little more of a move up here in these stocks? >> you know, i'm not sure. I don't think people are really paying attention to it. I think people are worried about the fact that it costs a lot of money to go to these places. But if you look at a dee vry, it's less than 90% of the
“… ducation. What you're seeing there, if you're seeing a fairly low pe, and a stock that's probably got a 15% to 20% run, I think, as we see the people come back to these stocks, and to school. >> keep that chart of DEVRY up. What impressed me is your thesis is being borne out. Their undergraduate enrollment increased 22% year over year. August 18th or 19th they reported this. Given the good fundamental news which you're noting here, why aren't we getting a little more of a move up here in these stocks? >> you know, i'm not sure. I don't think people are really paying attention to it. I think people are worried about the fact that it costs a lot of money to go to these places. But if you look at a dee vry, it's less than 90% of the …”
DeVry Inc. (DV) Discussed on CNBC's Fast Money
DeVry Inc. is in the news. Find out how this impacts DV trading on Ockham Research.
We're best known for is being a career university, over 90% of our graduates, since 1975, have been employed in their field of study after graduation. And that's -- we're probably number one of all universities. >> daniel hamburger, thanks so much. Got it. Ceo of DEVRY. An interesting side note here, mr. Hamburger's first job was at general motors and, of course, as you know DEVRY has replaced gm in the s&p 500. A nice little twist there. >> you tied that one together. >> I try. We try here. >> the harvard education. >> next trade here, hewlett-packard to report earnings following yesterday's price target. Upgraded by jpmorgan, will they help keep the tech rally alive? Mike, what do you think? Can hewlett-packard move the we've gotten omani reports about business spending and technology. Will this make a difference? >> well, I think it will make a difference. I think hewlett and dell's
“… . Ceo of DEVRY. An interesting side note here, mr. Hamburger's first job was at general motors and, of course, as you know DEVRY has replaced gm in the s&p 500. A nice little twist there. >> you tied that one together. >> I try. We try here. >> the harvard education. >> next trade here, hewlett-packard to report earnings following yesterday's price target. Upgraded by jpmorgan, will they help keep the tech rally alive? Mike, what do you think? Can hewlett-packard move the we've gotten omani reports about business spending and technology. Will this make a difference? >> well, I think it will make a difference. I think hewlett and dell's …”
DeVry Inc. (DV) Discussed on CNBC's Fast Money
DeVry Inc. is in the news. Find out how this impacts DV trading on Ockham Research.
Time for your earnings edge. Deevry was up and are they poised for more growth? Joining us is daniel hamburger, the president and ceo of DEVRY. Always a pleasure to have you >> thank you, melissa. >> how does the average investor understand your business in terms of the schools and programs that you have versus cyclical or noncyclical, tied to the economy or not tied to the >> sure, most of our schools are actually not tied to the economy, so they are very steady and perform well in bad times as this as well as good times that we hope to see around the corner. Like our medical school. People don't wake up and have lost their job and say I want to go to medical school. It doesn't happen. That's a long-term prospect. And then we have the larger school, of course, is DEVRY university including the keller graduate school, so a very large mba program. And then we have a professional education segment, the becker cpa review, for example, which is cyclical and it's hurting a little bit right now. It's still growing but a little bit slower than it was before. >> mr. Hamburger, this is karen, how many of your students need funding, need loans, to attend your universities, I guess, i'm sorry if I don't know the proper >> university. >> and are they finding any trouble getting access to that >> right. Like most universities, the majority of our students are
“… in terms of the schools and programs that you have versus cyclical or noncyclical, tied to the economy or not tied to the >> sure, most of our schools are actually not tied to the economy, so they are very steady and perform well in bad times as this as well as good times that we hope to see around the corner. Like our medical school. People don't wake up and have lost their job and say I want to go to medical school. It doesn't happen. That's a long-term prospect. And then we have the larger school, of course, is DEVRY university including the keller graduate school, so a very large mba program. And then we have a professional education segment, the becker cpa review, for example, which is cyclical and it's hurting a little bit right now. It's still growing but a little bit slower than it was before. >> mr. Hamburger, this is karen, how many of your students need funding, need loans, to attend your universities, I guess, i'm sorry if I don't know the proper >> university. >> and are they finding any trouble getting access to that >> right. Like most universities, the majority of our students are …”
DeVry Inc. (DV) Discussed on CNBC's Fast Money
DeVry Inc. is in the news. Find out how this impacts DV trading on Ockham Research.
Is the market going up because obama's poll numbers are going down? Joe terranova breaks down the obama trade. >>> and americans are going back but will that be this school at the head of the class? The ceo at DEVRY opens up "the teacher's addition" and we grade the trade. >>> first the intestones met the brady bunch. And tv history will be made when america's post-market show al we come together ( chirp ) team three, boathouse?( chirp )oh yeah--his and hers.- ( crowd gasping ) - ( chirp ) van gogh? ( chirp ) even steven.- ( chirp ) mansion. - ( chirp ) good to go. ( grunts ) timber! ( chirp )boss? What do we do with the shih-tzu?-( crowd gasps )
“… e grade the trade. >>> first the intestones met the brady bunch. And tv history will be made when america's post-market show al we come together ( chirp ) team three, boathouse?( chirp )oh yeah--his and hers.- ( crowd gasping ) - ( chirp ) van gogh? ( chirp ) even steven.- ( chirp ) mansion. - ( chirp ) good to go. ( grunts ) timber! ( chirp )boss? What do we do with the shih-tzu?-( crowd gasps ) …”
DeVry Inc. (DV) Discussed on CNBC's Closing Bell
DeVry Inc. is in the news. Find out how this impacts DV trading on Ockham Research.
Could trade slightly higher but not much higher and I wouldn't want be to be too cute on this. I would not want be short commodities that much longer. >> thanks both of you for joining us. >> coming up at 5:00, the higher learning trade is red hot, but can it stay that way? The ceo of DEVRY breaks it down, their earnings. And the "fast money" crew gives you the grade and the trade. >>> and worlds collide. "options action" invades "fast you don't want nois this one. At 5:00. Be sure to catch scott, melissa, and the options crew tonight at their new time. "options action" is coming to you at 8:30. That's tonight right here on cnbc. >> all right, melissa, thanks very much. 22 minutes to go before we close it down for a friday. We look at the dow, down 118 points. The nasdaq still down about 1 1/2% on the session and down for the week. >> another retailer giving a rosy profit outlook but is
“… n it stay that way? The ceo of DEVRY breaks it down, their earnings. And the "fast money" crew gives you the grade and the trade. >>> and worlds collide. "options action" invades "fast you don't want nois this one. At 5:00. Be sure to catch scott, melissa, and the options crew tonight at their new time. "options action" is coming to you at 8:30. That's tonight right here on cnbc. >> all right, melissa, thanks very much. 22 minutes to go before we close it down for a friday. We look at the dow, down 118 points. The nasdaq still down about 1 1/2% on the session and down for the week. >> another retailer giving a rosy profit outlook but is …”
DeVry Inc. (DV) Discussed on CNBC's Power Lunch
DeVry Inc. is in the news. Find out how this impacts DV trading on Ockham Research.
>> that are does it for us here at the halftime report. We have the vacation and going inside the booming obama cottage industry. On tonight's fast money, from working to gm, the ceo of DEVRY climate. Scott and myself on "options action" tonight 8:30 p.M. Eastern time. I know you will be watching. >> absolutely. Coming up on "power lunch," bernie madoff spilling the beans about an affair. A woman who had an affair with bernie madoff. Who is she? We will set you up to trade with the trader triple play. "power lunch" is back in 30 seconds. >> an unexpectedly large drop in consumer confidence spurs stocks
“… Eastern time. I know you will be watching. >> absolutely. Coming up on "power lunch," bernie madoff spilling the beans about an affair. A woman who had an affair with bernie madoff. Who is she? We will set you up to trade with the trader triple play. "power lunch" is back in 30 seconds. >> an unexpectedly large drop in consumer confidence spurs stocks …”
DeVry Inc. (DV) Discussed on CNBC's Closing Bell
DeVry Inc. is in the news. Find out how this impacts DV trading on Ockham Research.
We'll continue following that. A victory for hank greenberg for sure. Up next a cnbc exclusive interview with DEVRY. How president obama's plan to tax overseas profits will impact his company and what to do about the education issues in this country. Mr. Evans? This is
“… Evans? This is …”