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Bucyrus International, Inc. Class A (BUCY)

BUCY Stock Report

2-Year Price History

Recent Price
(7/2 4:00PM) -6.2%
$27.07
52-Week Price
$10.62 – $71.90
Market Capitalization
$2.0 Billion
Dividend Yield
0.40%
Most Recent Dividend
$0.10

Ockham’s Rating

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BUCY 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 BUCY through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 6 years are 2.34x and 0.92x respectively.

Utilizing this range we can see that BUCY’s current Price to Sales per share ratio of 0.78x is significantly below its average levels historically. In fact, with a current price of $27.07, BUCY is a full 52% 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 BUCY.

BUCY 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 BUCY, Ockham views their current Cash Earnings as significantly below its historical average multiple of Cash Earnings. Looking at the last 6 years we can get a good understanding of what investors have grown to expect from BUCY. For example, BUCY’s Cash Earnings ratio per share has fluctuated between 8.60 and 21.57 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where BUCY is with respect to prior business periods.

So with BUCY’s current price (latest close of $27.07) and most recent level of Cash Earnings reported, we see significant opportunity from a value perspective. At its current price level, BUCY is 57% 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 BUCY.

BUCY 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 BUCY’s case, the estimated annual dividend is $0.10 resulting in a current dividend yield of 0.37%. Similar to our review of Sales and Cash Earnings per share, we evaluate dividend yields from BUCY against the historic high and low levels over the past 6 years. The highest dividend yield from BUCY over this period was 0.94% while the lowest dividend yield was 0.13% While it is quite common for a growth stock to pay no dividend at all, but for a mature company such as BUCY that has a history of paying dividends it is disappointing to see their dividend yield drop so significantly. At this time, the current dividend yield is 30.84% below the median yield.

Peer Comparison

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Bucyrus International, Inc. Class A Industry Grouping

(7/2/2009)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not incuding BUCY) 8.13 4.39 » 30.81 0.79 0.47 » 1.88 16.16% 14.98%
*10 year range does not include current year values
Dresser-Rand Group, Inc. DRC $2.1 Billion $24.91 7.98 3.87 » 23.16 0.88 0.44 » 2.27 n/a 12.12%
Bucyrus International, Inc. Class A BUCY $2.0 Billion $27.07 6.59 3.49 » 41.49 0.78 0.41 » 2.60 49.31% 18.60%
General Cable Corp. BGC $2.0 Billion $38.16 6.61 1.14 » 74.25 0.29 0.05 » 0.96 32.28% 25.50%
Idex Corp. IEX $1.9 Billion $24.04 11.90 6.88 » 18.98 1.20 0.96 » 2.70 13.30% 13.00%
Valmont Industries, Inc. VMI $1.8 Billion $69.13 10.11 4.71 » 19.78 0.90 0.34 » 1.71 17.89% 15.20%
Teleflex Inc. TFX $1.8 Billion $44.41 4.02 5.35 » 17.89 0.68 0.57 » 1.77 1.19% 9.08%
>
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The latest TV Media Discussion

5:47:18 PM BUCY $29.04 Bucyrus International, Inc. Class A
Fast Money
4 days ago (06/29)
“…Look at mining, a look at bu BUCYRUS. >>> we’ve got your fast forecast in these markets, i’m glad I turned to fidelity for an annuity with guaranteed that’s right, …” …more details…
2:42:17 PM BUCY $27.36 Bucyrus International, Inc. Class A
15 days ago (06/18)
“…That sallie mae’s got tremendous earnings power just from its existing loans. This was a big deal. The market’s a little soggy, but this stock should be at $9.10, not $8. >> what about joy global and BUCYRUS — >> I have to tell you, erin, the numbers out of caterpillar for machines for north america and for japan were devastating to me, and they were so bad that i’m thinking, you and I talked a great deal about joy global when it was in the low 20s and BUCYRUS when it was. Lower. Maybe it’s time to step back from these stocks and reflect maybe some of the bad news of caterpillar and not think they’re going to keep growing to and finally, fedex not as bad as …” …more details…
2:27:07 PM BUCY $29.35 Bucyrus International, Inc. Class A
6/3/2009 2:27 PM
“…That these guys do this number. Who knows what can happen if the economy gets better? >> it is not just joy global. You also like BUCYRUS. >> another company that people realized how good it was. At joy global. They were bidding that up before the market opened. But these are both really fine companies. Which by the way,y will add, …” …more details…
6:48:19 PM BUCY $30.69 Bucyrus International, Inc. Class A
Mad Money
6/1/2009 6:48 PM
“…>> ouch. Too hard for me. Man, that balance sheet’s so every dog has its day, including, by the way, tex. I’ve got companies like BUCYRUS, buc — oh, man, $30. I’ve got companies like joy global at 36 — please, i’m talking here. And they are both better than yours even though they are not $7. I’m going to send you the good ones, not the bad ones. …” …more details…
6:46:06 PM BUCY $30.69 Bucyrus International, Inc. Class A
Mad Money
6/1/2009 6:46 PM
“…Your portfolio. You’ve got nothing but high flyers, oil, minerals, and the companies that are like machinery companies like BUCYRUS, and joy. By the way, BUCYRUS, how do I not beat those things into your >> caller: boo-yah. >> how about where the lanes …” …more details…
9:42:26 AM BUCY $26.56 Bucyrus International, Inc. Class A
5/27/2009 9:42 AM
“…Annual share outlook. Nonetheless the street likes what they heard and steeple nicholas liking that group talking joy global and BUCYRUS, and raising, and lastly, big lots cut to neutral in overweight at j.P. Morgan, shares tumbling 6%, alexis. …” …more details…
6:44:10 PM BUCY $25.08 Bucyrus International, Inc. Class A
Mad Money
5/18/2009 6:44 PM
“…>> caterpillar, i’m a buyer of because of international growth. By the way, india is an interesting cat play. I think india, by the way-s a major game changer. As we know from tim sullivan on BUCYRUS, this country may now be ready to start buying some but regardless, caterpillar is an inexpensive stock that has just been killed, just been killed by fears of a global depression, which I think ended …” …more details…
6:54:49 PM BUCY $23.11 Bucyrus International, Inc. Class A
Mad Money
5/15/2009 6:54 PM
“…$13, $14 basis, up a lot on the stock, and you know what? Yes, I don’t want you to be greedy, but this is the machinery company that’s priced to own. He’s a good man. BUCY is a good stab. …” …more details…
6:50:15 PM BUCY $23.11 Bucyrus International, Inc. Class A
Mad Money
5/15/2009 6:50 PM
“…From big american manufacturers. I always hope i’m going to be proven wrong about this. The united states could become eclipsed by china as a world I want to ask you about BUCY, but could you just talk about that quote for a second? Because it’s pretty earth >> I think it’s going to happen. I think the fact their economy is growing at the speed it is and ours is in the doldrums, I think it’s not in the too distant future that that …” …more details…
6:49:49 PM BUCY $23.11 Bucyrus International, Inc. Class A
Mad Money
5/15/2009 6:49 PM
“…I think you should ring the register, take a little something off the table. But there’s a strong case to we have to be sure, though. So why don’t we talk to a guy who’s really been money for us? Let’s go to tim sullivan, the ceo of BUCYRUS. Welcome back to "mad money." >> glad to be back, jim. >> first i’ve got to tell you, mr. Sullivan, you gave a speech recently at the harvard business school club of wisconsin. You said something that we’ve …” …more details…
6:49:27 PM BUCY $23.11 Bucyrus International, Inc. Class A
Mad Money
5/15/2009 6:49 PM
“…This week, which makes up 15% of its sales, has already bounced from its late 2008 lows. Plus iron ore exports from brazil reported to be up 50% in and even though BUCYRUS mostly makes equipment for coal and copper mining that was the first increase in shipments since october 2008. To me that’s a sign that the market for metals and other raw I like BUCYRUS, and while I think those of you who bought it near the bottom are being pigged and bulls make money, pigs make money but hogs get slaughtered, I think you should ring the …” …more details…
6:48:54 PM BUCY $23.55 Bucyrus International, Inc. Class A
Mad Money
5/15/2009 6:48 PM
“…While the street was only expecting 68 cents. That was just monumental, one of the biggest beats we had. New orders were down. But that was expected. BUCYRUS only saw $16 million in that was unexpectedly good. Its backlog is $2.34 billion. Which by the way is much larger than the company’s $1.7 billion market cap. Now, close observers show remember santa fe oil, santa fe recommended when it got to that kind of ratio. So we’re loosening up here. Now it looks like BUCYRUS may have bottomed. 65% of its sales from selling machinery for mining, coal, and coal prices have pulled back enormously to levels we haven’t seen since before the boom in and copper, although it was down …” …more details…
6:47:55 PM BUCY $23.55 Bucyrus International, Inc. Class A
Mad Money
5/15/2009 6:47 PM
“…I reiterated that call on march 4th with the stock at $12.33. And it’s more than doubled off its 52-week low. So is BUCYRUS done, or do you take the longer view and look at BUCYRUS as a stock that’s down 71% from its 52-week high of can you believe where that stock put it another way. Does BUCYRUS have room to run or is it due for a pullback? If you tone you’ve got to ask the only band that matters, that’s the clash, for those of you who are demographically should I stay or should I go …” …more details…
6:47:12 PM BUCY $23.55 Bucyrus International, Inc. Class A
Mad Money
5/15/2009 6:47 PM
“…>>> how do you come at the stock of a company like BUCYRUS? The mining equipment manufacturer. BUCYRUS, BUCY, b-u-c-y, for all you home gamers, is trading at it’s up 28% since I recommended it on december 9th at $17.62. …” …more details…
6:09:25 PM BUCY $25.23 Bucyrus International, Inc. Class A
Mad Money
5/12/2009 6:09 PM
“…I mean — hey, cole, buy some that’s c-o-l-e buying c-o-a-l. Take that, bear. >> caller: BUCYRUS INTERNATIONAL. The stock’s doubled in the past couple months — >> BUCYRUS, not busirius. You’re confusing it with sirius satellite. I do like the stock. I think the stock has had a monster good move. And we have to be serious about in this one recognizing that …” …more details…
5:11:46 PM BUCY $26.93 Bucyrus International, Inc. Class A
Fast Money
5/6/2009 5:11 PM
“…Potential going forward, their margins look outstanding. Those that are not just tied to met lurnlgic coal, that actually have the therm’ll a, they have the blend, they really look great going forward, and take a look at BUCYRUS and joy global. Timmy point td out, they have been on fire for a long time. Last week it was goldman sachs jumping on the bandwagon. These things were working before >> a lot of stuff is working. Oil has room to the 80s if you …” …more details…
5:13:07 PM BUCY $25.31 Bucyrus International, Inc. Class A
Fast Money
5/4/2009 5:13 PM
“…Record low real rates much higher than the developed world any resurgence in the g-3 allows it to go even higher. >> we heard from cat last week, from the ceo of BUCYRUS, everybody’s talking about excavators and all the rest the growth they see coming out but fxi we talked about last week smk put on this massive one by two by one not going to go into how complex it was june call …” …more details…
5:09:47 PM BUCY $20.95 Bucyrus International, Inc. Class A
Fast Money
4/29/2009 5:09 PM
“…But we talked about the xlb and some of the coal-buying not long ago, going out to june, getting the june 26s. Mont santo continues to be in this, but it continues to move higher every day. BUCYRUS came out and talked about at least a stabilization in prices. Then you talk china, caterpillar, goodyear tire. Everybody is talking about china is back in the game. >> and you mentioned our chart …” …more details…
9:06:42 AM BUCY $17.98 Bucyrus International, Inc. Class A
4/6/2009 9:06 AM
“…Reached their near term projected targets. The names over at jp morgan, joy global. BUCYRUS getting a boost 1 1/2 to the upside. They are coming back and on top of that. The leverage on the market is loosening up. That should be a boost for them. Watch this name, 11.7% to the …” …more details…
6:41:58 PM BUCY $12.53 Bucyrus International, Inc. Class A
Mad Money
3/4/2009 6:41 PM
“…>> I was surprised they weren’t up more given their profile at joy global. I am a buyer the BUCY. Lot of infrastructure in the pelosi plan, we didn’t get that how about bob in pennsylvania? Bob? …” …more details…
4:05:36 PM BUCY $10.92 Bucyrus International, Inc. Class A
3/2/2009 4:05 PM
“…But wynn resorts possibly needing additional funding, getting pounded to the tune before 12% here today. Also the industrials not only a ge problem but things like foster wheeler and BUCYRUS and joy global all getting hit to double digits here today. Jetblue and all the airline stocks struggling. Steel dynamics shaking off an …” …more details…
3:06:17 PM BUCY $11.07 Bucyrus International, Inc. Class A
3/2/2009 3:06 PM
“…We talked a lot about general it falls into the industrial space, the capital goods. We’re seeing industrials of all stripes falling apart at the nasdaq here today. Joy, global, and BUCYRUS they both very weak. Jetblue and united both very weak in the airline space. And yrc worldwide trucking very weak here today. Down 10%. Dell one of the few stocks …” …more details…
View All Bucyrus International, Inc. Class A News

Key Fundamentals

BUCY – Bucyrus International, Inc. Class A Fundamentals
Price (7/2 4:00PM) $27.07
Volume (7/2 4:00PM) 2.1 Million
Last Close Price $28.87
10 Day Average Volume 2.2 Million
13 Week Price Range $16.39 – $34.34
52 Week Price Range $10.62 – $71.90
LTM Revenue $2.6 Billion
 
Shares Outstanding (12/2008) 75.1 Million
Market Capitalization $2.0 Billion
Shares Held By Institutions 65.1 Million
Institutional Holders 318
% Shares Held By Institutions 86.70%
Earnings Per Share (EPS) $3.10
P/E Ratio 8.20
Book Value Per Share $13.15
 
Gross Margin 29.00%
Annual Dividend 0.10
Dividend Yield 0.40%
Beta 2.63
Fiscal Year Ends December

About Bucyrus International, Inc. Class A

Bucyrus International, Inc. Class A is considered to operate in the Industrial Goods sector. They specifically operate in the Farm/Construction Machinery business segment contained within the Industrial industry.

The Company designs, manufactures and markets draglines, electric mining shovels and rotary blasthole drills used for surface mining and provide the aftermarket replacement parts and service for these machines.

NASDAQ 1796.52

-49.2  -2.67%
S&P; 500 896.42

-26.91  -2.91%
^DIA 82.99

-2.04  -2.4%