NYSE:CBI
$18.52
(12/11 6:40PM)
+0.2%
| Open | $18.61 |
Mkt Cap | $1.8 Billion |
| High | $18.7 |
52Wk High | $21.44 |
| Low | $18.3 |
52Wk Low | $4.64 |
| Volume | 537,486 |
Avg Vol 10D | 1.1 Million |
Ockham’s Rating/Recommendation Summary
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CBI Revenue
As a value investing shop, we are interested in seeing how CBI’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 1.17x and the low end of the range at 0.48x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for CBI of 0.37x is well below its normal historic Price to Sales levels. At a price of $18.52, CBI is 56% 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.
CBI 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 CBI is significantly below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for CBI to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 44.52 and a 16.12 low over the same period.
Now that CBI’s current price is $18.52 and its Price to Cash Earnings ratio is 6.54, we are very positive on its outlook from the cash earnings perspective. In fact, CBI is now trading a full 79% below its average historical Price to Cash Earnings ratio at these profit per share levels. When our clients ask us why CBI has great long term potential, the Cash Earnings levels to current stock is one of our primary reasons. But naturally, now we need for the overall market to recognize this disparity.
CBI 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.
Chicago Bridge & Iron Company NV (CBI) Discussed on Fox Business’s Fox Business
Chicago Bridge & Iron Company NV is in the news. Find out how this impacts CBI trading on Ockham Research.
Carters and wall street, holding on to gains, the other three names are to the down side and take a look also at what goldman sachs is giving them buy ratings today and they always were taking a look at and CHICAGO BRIDGE AND IRON and texas instruments, this whole list was added to the american’s– to the buy list and one name was added to the conviction buy list and that was CHICAGO BRIDGE AND IRON and that was up nearly 7%, add it to citi’s buy list and talking about retail, target is on there, so, that certainly, that was doing well, and we’re watching suntrust and other names and ak steel. These are the names added to citigroup’s buy ratings and being upgraded and suntrust not a buy, but did get an upgrade.
“… his whole list was added to the american’s– to the buy list and one name was added to the conviction buy list and that was CHICAGO BRIDGE AND IRON and that was up nearly 7%, add it to citi’s buy list and talking about retail, target is on there, so, that certainly, that was doing well, and we’re watching suntrust and other names and ak steel. These are the names added to citigroup’s buy ratings and being upgraded and suntrust not a buy, but did get an upgrade. …”
Chicago Bridge & Iron Company NV (CBI) Discussed on CNBC’s Fast Money
Chicago Bridge & Iron Company NV is in the news. Find out how this impacts CBI trading on Ockham Research.
Unfortunately cyprus was looking to actually make a little bit of money naep lost a little bit of money. That was a problem. All of that negative and a big hit today. >> and we got a big old pop for CHICAGO BRIDGE AND IRON. It was up 10%. >> it was. >> like john meloy? >> like john meloy. We do this thing, secret identity stock last week. Three nights I was supposed to do secret identity stock. They kept mentioning charlie
“… ke john meloy? >> like john meloy. We do this thing, secret identity stock last week. Three nights I was supposed to do secret identity stock. They kept mentioning charlie …”
Chicago Bridge & Iron Company NV (CBI) Discussed on CNBC’s Squawk On The Street
Chicago Bridge & Iron Company NV is in the news. Find out how this impacts CBI trading on Ockham Research.
Selling, raising their outlook. Hit a high of 2127. I love this one. CHICAGO BRIDGE AND IRON based in holland is up seven. Energy, a little weaker today. A well in west africa, I want to talk about capital one down 5.5%. Credit card defaults on the rise. The expectation is not coming down any time soon. It’s expected to get even mark, back to you.
“… The expectation is not coming down any time soon. It’s expected to get even mark, back to you. …”
Chicago Bridge & Iron Company NV (CBI) Discussed on Fox Business’s Fox Business
Chicago Bridge & Iron Company NV is in the news. Find out how this impacts CBI trading on Ockham Research.
Always watch the same names it is traders watch. Caterpillar shot up on news from china their excavators are hitting record levels. Bmx and clothing, CHICAGO BRIDGE AND IRON, very good move there. Cutting costs, offsetting thedrop in revenue. As I say that, some are speculating about the first quarter and all these companies
“… t, some are speculating about the first quarter and all these companies …”
Chicago Bridge & Iron Company NV (CBI) Discussed on CNBC’s Mad Money
Chicago Bridge & Iron Company NV is in the news. Find out how this impacts CBI trading on Ockham Research.
With a big huntington texas boo-yah. >> I will give you a naga doches boo-yah at you. >> caller: we have a question — my son and I have a question about CHICAGO BRIDGE AND IRON. >> oh, familiar boo-yah. Look, it’s a speck name. It’s a $5 speck name. Going to be your speck party
“… g to be your speck party …”
Chicago Bridge & Iron Company NV (CBI) Discussed on Fox Business’s Countdown to the Closing Bell
Chicago Bridge & Iron Company NV is in the news. Find out how this impacts CBI trading on Ockham Research.
Purchase of applebees. Dine equity up 18%. You can’t deny how good the chinese chicken salad is at many an evening there when I was in ohio. Thank you. CHICAGO BRIDGE AND IRON shares reporting a 55% jump in fourth quarter net income. But the construction and engineering company gave a 2009 outlook that is far below estimates and suspended
“… and engineering company gave a 2009 outlook that is far below estimates and suspended …”
Chicago Bridge & Iron Company NV (CBI) Discussed on Fox Business’s The Opening Bell on Fox Business
Chicago Bridge & Iron Company NV is in the news. Find out how this impacts CBI trading on Ockham Research.
U.K. Government owns, and quite a day for lloyds. Dire predictions from the con federation of british industry cbi says the u.K. Economy will contract 3.3% this year, and post absolutely no growth in and ubs in the auto sector are cutting daimler to sell, that’s ahead of the company’s results
“… that’s ahead of the company’s results …”
Chicago Bridge & Iron Company NV (CBI) Discussed on Fox Business’s Countdown to the Closing Bell
Chicago Bridge & Iron Company NV is in the news. Find out how this impacts CBI trading on Ockham Research.
Crude prices and high dislate prices. Capacity for refining and exploration, that will be good for them longer term. I like cbi, I like valero. >> and so you believe these names are poised in the next — can you give you a time line? >> they have a tremendous run. But I think it will continue, if you’re going to buy and hold, this is probably the space to do
“… dous run. But I think it will continue, if you’re going to buy and hold, this is probably the space to do …”