NYSE:RSH
$19.15
(2/9 1:56PM)
+3.0%
| Open | $18.9 |
Mkt Cap | $2.3 Billion |
| High | $19.25 |
52Wk High | $21.56 |
| Low | $18.74 |
52Wk Low | $6.47 |
| Volume | 1.4 Million |
Avg Vol 10D | 2.4 Million |
Ockham's Rating/Recommendation Summary
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RSH Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at RSH through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 0.96x and 0.48x respectively.
Utilizing this range we can see that RSH’s current Price to Sales per share ratio of 0.56x is significantly below its average levels historically. In fact, with a current price of $19.01, RSH is a full 22% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for RSH.
RSH 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 RSH, Ockham views their current Cash Earnings as 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 RSH. For example, RSH's Cash Earnings ratio per share has fluctuated between 6.67 and 13.39 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where RSH is with respect to prior business periods.
So with RSH's current price (latest close of $19.01) and most recent level of Cash Earnings reported, we see significant opportunity from a value perspective. At its current price level, RSH is 21% 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 RSH.
RSH 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 RSH 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 RSH is $0.25 producing a current dividend yield of 1.32%. Much like our evaluation of Sales and Cash Earnings per share, we review dividend yields from RSH 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 RSH over previous years was 3.86% while the lowest dividend yield was 0.39%. It is never a good sign for a company to pay significantly lower dividends, in this case 37.88% below the median yield. Although, dividends are a relatively small portion of our analysis framework, we still see this as a negative factor.
Power Lunch: Will RSH Test Its 52-week High?
When a stock reaches a notable high point, investors have to ask themselves: take profits or let it run? See what Power Lunch recommends for RadioShack Corporation and obviously Ockham has an opinion as well.
RadioShack Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; RSH has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.
“… RADIOSHACK today hitting another 52-week high being added to the conviction buy list at goldman sachs. Do you like this name? …”
Power Lunch: Will RSH Test Its 52-week High?
An abnormally high price is obviously a joyous occasion for investors in that stock. See what Power Lunch was talking about for RSH below.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, RadioShack Corporation has actually sunk a bit in comparison to the others. The Ockham valuation currently has a Fairly Valued stance on RSH because it trades within the price range that we would expect given current market conditions and fundamentals. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see RadioShack Corporation underperforming.
“… Ford, the highest since june of '05 and RADIOSHACK the highest since june of '07 and the highest performance since march 2007 as well, each though they weakened a bit in the last ... …”
RSH News Mentioned on Squawk On The Street Recently
RadioShack Corporation is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Squawk On The Street.
The crowd at The Motley Fool does not like RSH and believes that it will Underperform. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, RSH 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 RSH.
“… RADIO SHACK is now again higher and near highs not seen since october of 2007. It did get an upgrade obviously yesterday from goldman because of its reliance on wireless. …”
Squawk On The Street Discusses Higher Prices and RadioShack Corporation
An abnormally high price is obviously a joyous occasion for investors in that stock. See what Squawk On The Street was talking about for RSH below.
The Ockham valuation currently has a Fairly Valued stance on RSH because it trades within the price range that we would expect given current market conditions and fundamentals. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see RadioShack Corporation underperforming. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, RadioShack Corporation has actually sunk a bit in comparison to the others.
“… And RADIO SHACK at highs not seen since october of '07. Orange juice futures higher this morning. According to citrus growers the overnight freeze in parts of florida is ... …”
Bullish/Bearish: Sentiment and RSH Discussed on Fast Money
Sentiment and investors' opinions on RSH were covered on Fast Money recently and RazorWire has captured the news segment.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, RadioShack Corporation 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 RadioShack Corporation underperforming. The Ockham valuation currently has a Fairly Valued stance on RSH because it trades within the price range that we would expect given current market conditions and fundamentals.
“… Maybe it was their clever holiday ads that made goldman sachs so bullish on RADIO SHACK added to the conviction buy list sending shares higher by more than 8%, a new 52-week high. …”
Countdown to the Closing Bell Discusses Higher Prices and RadioShack Corporation
Stick with it or dump it? Countdown to the Closing Bell discusses what an abnormally high price means for RSH's investors. Take note of Ockham's valaution on the stock as well.
We noticed recently that in comparison to all other stocks we analyze in the news; RSH has received less coverage from the financial media in business television and blogs. RadioShack Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.
“… RADIOSHACK back on the list. Very happy lately it hit another 52 week high. God man sax upgraded the stock put it on its conviction buy list. …”
Talk of RSH's CEO Day on Countdown to the Closing Bell
RadioShack Corporation's CEO is obviously vital to his company, so we believe any news covering him is worth knowing for investors.
The Ockham valuation currently has a Fairly Valued stance on RSH 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, RadioShack Corporation 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 RadioShack Corporation underperforming.
“… God man sax still to the upside despite some talk about meredith whitney's calls but you can see RADIOSHACK. Tenet healthcare two names on the buy list and people are buying ... …”
News on RSH From the Pundits on Fox Business
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to RadioShack Corporation.
While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. We noticed recently that in comparison to all other stocks we analyze in the news; RSH has received less coverage from the financial media in business television and blogs. RadioShack Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals.
“… We were watching RADIOSHACK even las vegas getting some overweight with barclays and ubs yesterday we were talking about calling it a buy. …”
Interested in RSH? See What the Pundits Said on Squawk On The Street
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on RSH from Squawk On The Street.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, RadioShack Corporation has actually sunk a bit in comparison to the others. The Ockham valuation currently has a Fairly Valued stance on RSH because it trades within the price range that we would expect given current market conditions and fundamentals. But as the price has risen in the last week, we have begun to look slightly less favorably on the valuation. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see RadioShack Corporation underperforming. Take notice of the news on this stock because it is up $1.67 since the close of trading yesterday.
“… as we go to break some of the biggest gainers on the s&p led by tenet health care and RADIO SHACK on the upgrade out of goldman sachs. . …”
RadioShack Corporation News is Being Covered Right Now on Squawk On The Street
The latest news from Squawk On The Street on RSH is available through Ockham's news analytics platform RazorWire.
RadioShack Corporation received our Fairly Valued rating in our latest report because the price at the time of the report of $20.25 did not seem out of line with the fundamentals. The price has risen since then and all other things being equal that makes RSH less attractive. We noticed recently that in comparison to all other stocks we analyze in the news; RSH has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. The latest news on RSH has created quite a stir as the stock is trading $1.73 higher in today's session.
“… RADIO SHACK and goldman sachs also will positive comments. They're talking about tenet health care being one of the only companies, one of the only hospital companies that are ... …”