NASDAQ:CA
$21.82
(2/9 3:03PM)
+1.4%
| Open | $21.82 |
Mkt Cap | $11.2 Billion |
| High | $21.89 |
52Wk High | $24.15 |
| Low | $21.56 |
52Wk Low | $15.13 |
| Volume | 2.6 Million |
Avg Vol 10D | 5.5 Million |
Ockham's Rating/Recommendation Summary
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CA 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, CA the high and low end of the Price to Sales per share ratios are 4.10x and 2.58x respectively.
Notice that CA's current Price to Sales per share ratio is 5.01x, which is high enough compared with historical norms of CA to cause some concern. The current Price to Sales per share is near the upper end of the historical range. In our eyes, this is a negative factor because it is more likely that it will return to the normal range than continue rising outside of the range. At current sales per share levels, we would need to see a decline in the Price to Sales ratio of 50% merely to return CA to its historical average.
CA Cash Earnings
Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. CA is significantly below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for CA, the current level of Cash Earnings compared to its historical levels helps identify where CA is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 21.24 and a historical low Cash Earnings per share ratio of 13.94, an investor can relate where value becomes optimal.
So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for CA? From the Ockham perspective, we are looking specifically at CA to see if the market is recognizing the huge disparity between CA's past stock price to Cash Earnings ratio to today's levels. At a difference of 40% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at CA. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.
CA Dividends
A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.
When reviewing dividend yields for CA, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management's confidence in the company. CA’s estimated annual dividend is $0.16 resulting in a current dividend yield of 0.74%. The highest dividend yield from CA over recent history was 1.33% while the lowest dividend yield was 0.21%. Given this range, the current dividend yield for CA is below its historical median and not terribly attractive from this perspective.
Interested in CA? See What the Pundits Said on Zero Hedge
The latest news from Zero Hedge on CA is available through Ockham's news analytics platform RazorWire.
In comparison to the other stocks that we follow, CA, Incorporated has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days. The Ockham valuation currently has a Fairly Valued stance on CA 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 CA, Incorporated underperforming.
“… "Grants reviews CA's Baa1/A- rating as the worst in the US, the S&P downgrade and the structural not cyclical problem of California. …”
CA, Incorporated Was Talked About by Zero Hedge
CA, Incorporated is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Zero Hedge.
When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that CA, Incorporated has been talked about more than normal recently. The crowd at The Motley Fool does not like CA and believes that it will Underperform. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on CA.
“… Then again, for fears of retribution by the President once it becomes known that a "US bank" (or hedge fund) is actively pushing CA CDS wider, this may be one of the most ... …”
Mad Money Brings News Related to CA, Incorporated
CA, Incorporated is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Mad Money.
The crowd at The Motley Fool does not like CA and believes that it will Underperform. When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that CA, Incorporated has been talked about more than normal recently. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on CA.
“… oh, man, CA tahoe, how can I help you there. > > you can help me come shovel snow, but you probably don't want to do that. > > y I want circles. …”
Holding CA Stock? See What Is Being Discussed on Fox Business
The latest news on Fox Business in regards to CA came through on RazorWire recently.
The Ockham valuation currently has a Fairly Valued stance on CA 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 CA, Incorporated underperforming. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, CA, Incorporated has actually sunk a bit in comparison to the others.
“… CA can we cut medicare? It seems to work for a lot of people. A lot of elderly folks. > > well I simply judge it by what I have seen. …”
Focus on Costs: CA on Squawk On The Street
A news report on CA, Incorporated's cost structure occurred recently on Squawk On The Street, so investors should take note.
CA, Incorporated 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; CA 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.
“… Let's start with CA formerly computer associates reported adjusted earnings of 43 cents a share, a penny ahead of estimates. …”
A Discussion of CA's CEO Occurred on Seeking Alpha Wall St Breakfast
Ockham is always interested to know what the Chief Executive is doing for their company, and we noticed a mention of CA's CEO on Seeking Alpha Wall St Breakfast.
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. Ranking all stocks in terms of news coverage offers some interesting data. In the case of CA, it is getting significantly more attention in recent news coverage than we are used to seeing. CA, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals.
“… (PR, earnings call transcript) CA Inc. (CA): FQ3 EPS of $0. 43 beats by $0. 01. Revenue of $1. 1B (+8%) in-line. Names William McCracken new CEO. Shares -0. 5% AH. …”
Seeking Alpha Wall St Breakfast Talks CA and Finding Alpha
Will CA, Incorporated help you find that extra alpha your portfolio needs? Check what was said on Seeking Alpha Wall St Breakfast to see their take.
When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that CA, Incorporated has been talked about more than normal recently. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on CA. The crowd at The Motley Fool does not like CA and believes that it will Underperform.
“… NOK, ORI, OSK, OXY, PG, POT, RCL, RTN, SNE, T, TSM, TWC, TXT, TYC, UMPQ, XEL, ZMH Notable earnings after Thursday's close: AMCC, AMZN, ASIA, BCR, CA, CB, CPWR, GHL, GNW, ICO, ... …”
See More News on CA from Closing Bell
The latest news from Closing Bell on CA is available through Ockham's news analytics platform RazorWire.
CA, Incorporated 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. We noticed recently that in comparison to all other stocks we analyze in the news; CA has received less coverage from the financial media in business television and blogs. Due to deterioration in our valuation, we downgraded CA as of Sunday, January 03, 2010.
“… And they're on the not just selling intel but whole kit and CA buglboodle caboodle. Applied materials, 4. 7%. Nvidia down 4%. …”
CA, Incorporated News is Being Covered Right Now on Power Lunch
CA, Incorporated is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Power Lunch.
The crowd at The Motley Fool does not like CA and believes that it will Underperform. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on CA. Our valuation of CA 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, CA has been less covered in the news compared to the rest of our universe of stocks.
“… especially these po CA l i&i&i&i& times. > > whether the facts bear out your point of view, those guys are tone deaf, they do not get it. > > …”
Check Out Power Lunch and News on CA
As always, the latest news on CA is available to Ockham clients through RazorWire, and it was mentioned recently on Power Lunch.
CA, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. Due to deterioration in our valuation, we downgraded CA as of Sunday, January 03, 2010. We noticed recently that in comparison to all other stocks we analyze in the news; CA 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.
“… CA kind of year do you expect this will be for stocks first and bonds second? > > I think it's going to be continuation of what we saw in the last half of last year, which was ... …”