NYSE:EMC
$18.70
(3/18 1:32PM)
| Open | $18.61 |
Mkt Cap | $38.4 Billion |
| High | $18.79 |
52Wk High | $18.94 |
| Low | $18.56 |
52Wk Low | $10.91 |
| Volume | 9.9 Million |
Avg Vol 10D | 21.8 Million |
Ockham's Rating/Recommendation Summary
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EMC Revenue
As a value investing shop, we are interested in seeing how EMC'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 4.61x and the low end of the range at 2.11x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for EMC of 2.76x is well below its normal historic Price to Sales levels. At a price of $18.88, EMC is 18% 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.
EMC 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 EMC 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 EMC. For example, EMC's Cash Earnings ratio per share has fluctuated between 13.26 and 26.44 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where EMC is with respect to prior business periods.
So what does a Cash Earnings ratio below the historical norm mean for EMC? Generally, EMC'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 EMC. Remember, that the average Cash Earnings level for EMC has been 19.85, so the current Cash Earnings level of 17.98 is a positive in our view, but by no means is it overwhelming.
EMC 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 EMC 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 EMC at this time.
EMC Gets Mentioned in the Financial Media
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on EMC from Tech Trader Daily-Barron's.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, EMC Corporation 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. The Ockham valuation currently has a Fairly Valued stance on EMC because it trades within the price range that we would expect given current market conditions and fundamentals.
“… analyst Gary Mobley asserted in a research note that key customer EMC (EMC) “has commenced the process” of qualifying a second solid-state drive supplier, and that it it may soon ... …”
The Latest News for EMC Was Just on Tech Trader Daily-Barron's
The latest news from Tech Trader Daily-Barron's on EMC is available through Ockham's news analytics platform RazorWire.
The Ockham valuation currently has a Fairly Valued stance on EMC because it trades within the price range that we would expect given current market conditions and fundamentals. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, EMC Corporation has actually sunk a bit in comparison to the others.
“… ” He thinks that suggests Samsung, Intel-Hitachi or Fujitsu-Toshiba could gain qualification at EMC. Mobley says he’s heard that an additional supplier could be on line at EMC by ... …”
Undervalued or Overvalued? Tech Trader Daily-Barron's Takes on EMC's Valuation
Tech Trader Daily-Barron's covered valuation multiples and metrics related to EMC Corporation. For a full fundamental valuation analysis on EMC visit the Ockham report.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, EMC Corporation has actually sunk a bit in comparison to the others. The Ockham valuation currently has a Fairly Valued stance on EMC because it trades within the price range that we would expect given current market conditions and fundamentals. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.
“… “However, based on competitive dynamics and other factors, we believe the company will emerge from the EMC-inventory-induced downturn less profitable than in 2009. …”
Fast Money Discussed EMC in Relation to M&A Activity
While we do not know the details relating to EMC and any possible deal, our RazorWire news analytics has noticed a mention of the stock near a conversation about M&A activity.
EMC Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. 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; EMC has received less coverage from the financial media in business television and blogs. The latest news on EMC has created quite a stir as the stock is trading $1.06 higher in today's session.
“… Three names i'm looking at, EMC, health net and net app, those three names having very similar option activity and risk profiles like we saw today, devon energy getting bought ... …”
See Who is Talking About News from EMC on Tech Trader Daily-Barron's
As always, the latest news on EMC is available to Ockham clients through RazorWire, and it was mentioned recently on Tech Trader Daily-Barron's.
Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. EMC 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; EMC has received less coverage from the financial media in business television and blogs.
“… However, he says first half 2010 revenue and profits will “trend well below normalized levels” due to the excess inventory issue at key customer EMC. …”
Yearly Highs and EMC Recently Discussed on Fast Money
Stick with it or dump it? Fast Money discusses what an abnormally high price means for EMC's investors. Take note of Ockham's valaution on the stock as well.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. The Ockham valuation currently has a Fairly Valued stance on EMC 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, EMC Corporation has actually sunk a bit in comparison to the others.
“… you look at the storage names whether it's EMC which started to hit again 52-week highs and the bmw kicker. Then you have cue logic which shows more upside and folks were going ... …”
EMC Corporation News is Being Covered Right Now on Power Lunch
As always, the latest news on EMC is available to Ockham clients through RazorWire, and it was mentioned recently on Power Lunch.
The Motley Fool CAPS data suggests that investors believe EMC Corporation will beat the market in the foreseeable future. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, EMC 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 EMC.
“… Logic, we've talked about network appliance, EMC, western digitals of the world. Q. Logic trades 400 contracts, it's traded 17,000. …”
EMC Gets Mentioned in the Financial Media
EMC Corporation is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Street Signs.
The Motley Fool CAPS data suggests that investors believe EMC Corporation will beat the market in the foreseeable future. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, EMC 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 EMC.
“… We mentioned it in our program about our parent, general electric, which along with many other companies, including EMC, dell, ebay, cisco, a whole list of them, are druouble ... …”
Taking Stock: A View Towards EMC's Valuation
Taking Stock covered valuation multiples and metrics related to EMC Corporation. For a full fundamental valuation analysis on EMC visit the Ockham report.
Ranking all stocks in terms of news coverage offers some interesting data. In the case of EMC, it is getting significantly more attention in recent news coverage than we are used to seeing. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. EMC Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals.
“… We own EMC as well. There is a lot of opportunity in that area. We foc on valuations. We think the company is going to grow, do not get me wrong. …”
Mad Money Has News on EMC
EMC Corporation is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Mad Money.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, EMC Corporation has actually sunk a bit in comparison to the others. The Ockham valuation currently has a Fairly Valued stance on EMC because it trades within the price range that we would expect given current market conditions and fundamentals. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.
“… I got EMC. I got cisco. Intel. Unbelievable quarter. It's 11 times earnings. I need to go to my old home john in pennsylvania. John? > > this is john from. …”