NYSE:URS
$47.49
(3/12 6:40PM)
-0.7%
| Open | $47.85 |
Mkt Cap | $4.0 Billion |
| High | $48 |
52Wk High | $53.12 |
| Low | $47.21 |
52Wk Low | $38.03 |
| Volume | 612,592 |
Avg Vol 10D | 960,000 |
Ockham's Rating/Recommendation Summary
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URS Revenue
As a value investing shop, we are interested in seeing how URS'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 0.66x and the low end of the range at 0.37x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for URS of 0.43x is well below its normal historic Price to Sales levels. At a price of $47.49, URS is 17% below where we would expect to see it. Clearly, this stock looks undervalued compared to historical levels, at least on a Price to Sales basis. This will positively affect our analysis because it is rare to find a stock this far below historical norms, and we would expect some price appreciation to bring this metric back towards a more normal range.
URS 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 URS 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 URS. For example, URS's Cash Earnings ratio per share has fluctuated between 10.42 and 18.17 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where URS is with respect to prior business periods.
So with URS's current price (latest close of $47.49) and most recent level of Cash Earnings reported, we see significant opportunity from a value perspective. At its current price level, URS is 34% below its average level of Price to Cash Earnings on a historical basis. This means that investors were willing to pay for a much higher stock price than currently for the same level of Cash in the past, on a relative basis. There are a couple of important things to remember, however. First, value doesn't exist in a vacuum. So if the market doesn't recognize this value, even a great disparity in Price to Cash Earnings cannot force an immediate stock price reaction. Second, patience is key when looking at securities that have reached these levels of Price to Cash Earnings versus their historical norms. So be patient with URS.
URS 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. As far as our investing methodology goes, it is not necessary to pay a dividend in order to get a favorable rating, so as for right now URS gets a neutral rating for the dividend portion of the model. As you can see, we are not receiving historical dividend information from our data provider on URS at this time.
Street Signs Has the Latest News on URS
News has broken via the television and viral blogs regarding URS, so investors should take an interest in learning what was said.
When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that URS Corporation has been talked about more than normal recently. We consider URS as Undervalued at the current price of $46.79. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe URS Corporation will perform just about the same as the index.
“… people should be thinking about URS, which brought this washington group, and they are every bit a beneficiary of the building, and of the planning which by the way, is often ... …”
Its All About Earnings: The Call Talks About URS
Earnings or profits are the most key fundamental factor that an investor to be aware of for any stock. We noticed The Call discussed earnings on URS.
Based on our methodology, URS Corporation 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. We noticed recently that in comparison to all other stocks we analyze in the news; URS has received less coverage from the financial media in business television and blogs.
“… Up next, the nation's biggest chain stores out with the latest feeing URS. We'll go shopping in the market and we need positive stuff. > > and there's quite a few of them ... …”
URS's Back in the News After More than a Month on Mad Money
After a month of relative quiet from URS, they have appeared back in the news.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, URS has been less covered in the news compared to the rest of our universe of stocks. We consider URS as Undervalued at the current price of $46.41. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe URS Corporation will perform just about the same as the index.
“… URS has typically been seen as the laggard of the group. Suddenly things have flipped while the chinese put on the brakes. I think the whole perception changes. …”
First URS News on Mad Money in More Than a Month
There has not been much to report from URS in the last few weeks at least, but Mad Money talked about the stock recently.
At present, Ockham has a valuation stance of Undervalued on URS, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, URS Corporation has actually sunk a bit in comparison to the others. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards URS and think that it will generally perform in-line with the S&P 500.
“… As utilities are required to upgrade power generation fleets in order to reduce green haas gas emissions one more area of expertise for URS. …”
Slow Month for News Out of URS But Mad Money Mentions Them
There has not been much to report from URS in the last few weeks at least, but Mad Money talked about the stock recently.
At present, Ockham has a valuation stance of Undervalued on URS, 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 URS 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, URS Corporation has actually sunk a bit in comparison to the others.
“… URS has a strong relationship with the defense department. It's possible the company could take a larger share of an already expanding buy. …”
Discussion Turns to URS and Merger Talk on Mad Money
While we do not know the details relating to URS and any possible deal, our RazorWire news analytics has noticed a mention of the stock near a conversation about M&A activity.
The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. We noticed recently that in comparison to all other stocks we analyze in the news; URS has received less coverage from the financial media in business television and blogs. Based on our methodology, URS Corporation should hold some appeal to value investors as we view it as Undervalued.
“… Thanks to the acquisition of washington group in 2007, URS is now a major nuclear player with an experienced team that stands to benefit from any new nuclear bills that are going ... …”
Slow Month for News Out of URS But Mad Money Mentions Them
It's been at least a month since we noticed any major news coverage of URS, so the story in Mad Money may get the ball rolling.
Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards URS and think that it will generally perform in-line with the S&P 500. At present, Ockham has a valuation stance of Undervalued on URS, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, URS Corporation has actually sunk a bit in comparison to the others.
“… In government or just in general and specifically the most lucrative one we could come up, the company you probably never herd of it, the company is URS like jet or ers. …”
URS in Developing Markets on Street Signs
News related to emerging markets affecting URS Corporation today, and Street Signs discussed some recent developments.
The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. Based on our methodology, URS Corporation should hold some appeal to value investors as we view it as Undervalued. Ranking all stocks in terms of news coverage offers some interesting data. In the case of URS, it is getting significantly more attention in recent news coverage than we are used to seeing.
“… URS, thank you very. Thanks to you and lou breen, I am just floating in riches I go from baltic dry freight, I get harpex, then yours, the china freighterize the index. > > > …”
URS Corporation (URS) Discussed on CNBC's Power Lunch
URS Corporation is in the news. Find out how this impacts URS trading on Ockham Research.
Into their country and talk to you organize that the world bank instead of investing in bridges and roads they should put money defense la URS?Wyer? >> legal aid. 93 countries have laws on the books that say you have a right to a lawyer and a right not to be tortured. They have political will. One of the issue is torture continues because it's a the cheapest form of investigation. >> it's more about investigating >> well, yeah. Most of the people who are tortured today are not political 95% -- >> the vast majority it's >> they're the 12-year-old boy who stole a bicycle or the woman I met in bir rinwho was in jail for two years for stealing diapers. This is the map thingin thing, the world community -- >> all right? >> we have to wrap. Thank you for being here. She wants to end torture around
“… be tortured. They have political will. One of the issue is torture continues because it's a the cheapest form of investigation. >> it's more about investigating >> well, yeah. Most of the people who are tortured today are not political 95% -- >> the vast majority it's >> they're the 12-year-old boy who stole a bicycle or the woman I met in bir rinwho was in jail for two years for stealing diapers. This is the map thingin thing, the world community -- >> all right? >> we have to wrap. Thank you for being here. She wants to end torture around …”
URS Corporation (URS) Discussed on CNBC's Fast Money
URS Corporation is in the news. Find out how this impacts URS trading on Ockham Research.
Right now, but if you look across the board, some of the names still trade very, very cheap, and if you look at some of the backlog, they're very impressive, they continue to I like the names. >> URS, it was a $28 stock I think when we started talking made a 52-week high yesterday. Not a lot of stocks can say $50.43. Look at the quarter, $93,
“… e a 52-week high yesterday. Not a lot of stocks can say $50.43. Look at the quarter, $93, …”