NYSE:GHL
$75.69
(8/28 6:40PM)
-0.2%
| Open | $75.99 |
Mkt Cap | $2.1 Billion |
| High | $76.83 |
52Wk High | $92.90 |
| Low | $75.41 |
52Wk Low | $54.65 |
| Volume | 135,697 |
Avg Vol 10D | 182,500 |
Ockham’s Rating
Rating specific information requires Premium Access.
Buy Now
or
Learn More about Ockham’s Features and Services.
GHL 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 GHL 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 9.80x and 5.32x respectively.
Utilizing this range we can see that GHL’s current Price to Sales per share ratio of 10.01x is significantly above its historical average. This places GHL at the upper end of its historical range relative to sales per share and makes it difficult to suggest an attractive price outlook. At current sales per share levels, we would need to see a decline in the Price to Sales ratio of 32% merely to return GHL to its historical average.
GHL 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. GHL is significantly above 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 GHL. For example, GHL’s Cash Earnings ratio per share has fluctuated between 21.73 and 40.47 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where GHL is with respect to prior business periods.
So what does this tell us about GHL in particular? Basically, we would value the current level of Cash Earnings per share (which is at 86.01) as significantly overvalued. Just by looking at the last closing price of GHL, which was $75.69, we can see that compared to the historical high Price to Cash Earnings levels we calculated, the market has already rewarded GHL with a higher stock price. So basically, we don’t view this level of Cash Earnings or stock price as compatible with a long term value at this point. Just remember, that does not mean that GHL may not have other merits with which to find a good investment opportunity, it just means that we would prefer to see either an increase in Cash Earnings or a decrease in stock price before we would become bullish on this metric.
GHL 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 GHL’s case, the estimated annual dividend is $1.80 resulting in a current dividend yield of 2.38%. Similar to our review of Sales and Cash Earnings per share, we evaluate dividend yields from GHL against the historic high and low levels over the past 6 years. The highest dividend yield from GHL over this period was 3.96% while the lowest dividend yield was 0.53% Therefore, the current dividend yield of GHL is above the historical median by 6.01%. This is definitely a positive in our view.
“…>> the headlines were horrible. When you read through the quarters, the cash flow is over $5 million. They remain committed and ghl, the collapse mattered greatly to I don’t think that people recognize — this is a terrible market — I don’t think they recognize how much core strength …” – GHL on Street Signs