Current Assets – Free Bassuk http://freebassuk.com/ Sat, 19 Nov 2022 07:33:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://freebassuk.com/wp-content/uploads/2021/07/icon.png Current Assets – Free Bassuk http://freebassuk.com/ 32 32 Proposal Offers ‘Small-Scale Resort’ Cabins, RV Sites – for Kinzua Beach | News, Sports, Jobs https://freebassuk.com/proposal-offers-small-scale-resort-cabins-rv-sites-for-kinzua-beach-news-sports-jobs/ Sat, 19 Nov 2022 07:33:00 +0000 https://freebassuk.com/proposal-offers-small-scale-resort-cabins-rv-sites-for-kinzua-beach-news-sports-jobs/ Times Observer file photo by Brian Ferry The first recommendation provided to the Kinzua Market Initiative proposes a “small-scale beach resort” at Kinzua Beach. This would include various sized cabins, RV sites and an outdoor event venue. Last year the Kinzua Marketing Initiative was born in an attempt to develop a […]]]>

Times Observer file photo by Brian Ferry The first recommendation provided to the Kinzua Market Initiative proposes a “small-scale beach resort” at Kinzua Beach. This would include various sized cabins, RV sites and an outdoor event venue.

Last year the Kinzua Marketing Initiative was born in an attempt to develop a plan for the future of the area in and around Kinzua Beach.

The publicly funded effort brought in a consultant to examine what might be possible in this area.

The first recommendation? A “small-scale” station.

Jim Decker, president/CEO of the Warren County Chamber of Commerce and Industry, said the proposed location is Kinzua Beach and would include “different levels and sizes of cabins” as well as RV sites and an expanded outdoor event venue.

This is not the first time a resort has been proposed for Kinzua Beach.

The last time, it caused a visceral reaction in the community.

But the use of the term “seaside resort” might have been part of the problem in fueling such a negative response.

“We believe that the negative reaction to the Kinzua Beach development previously stemmed in large part from the lack of definition of what the development would really look like and the impact of the development on those who use the reservoir and the ANF,” Decker said.

“The term “seaside resort“is exceptionally broad in terms of amenities and scale and without (a) clear definition of the amenities and scale intended in a development, the actual impact is easily overstated.”

The impetus here isn’t pure financial gain either.

Decker said about 40% of the county’s landmass is national forest and explained that the Forest Service has not provided funding in the past 60 years – since the creation of the Kinzua Dam – to maintain the assets initially installed.

“We have this magnificent gem of a totally underutilized attraction,” he said. “(We try) to get people here to substandard facilities.”

The proposal at Kinzua Beach marks an attempt to “try to capitalize a little better on what we have.”

The data generated as a result of this planning process also leads organizers to believe that the reaction to a proposal like this might be different from last time.

“As we progressed through the current review process, we have endeavored to get as much feedback as possible from as wide an audience as possible,” Decker said. “We engaged CHM Government Services to manage the collection and interpretation of current activity in sectors of the hospitality industry throughout the region through focus group meetings in Warren and McKean counties.

“These meetings have provided the CHM with insight into what our region has, what the region wants in terms of expanded or new hospitality offerings, and the types of activities and offerings that are not desired. or deemed appropriate.”

The “global guideline” of the consultant, he pointed out “It is that conserving and recognizing the heritage and character of our region and the Kinzua region in particular was paramount to any proposed development.”

Decker said a financial feasibility study for the proposal was launched a few weeks ago and is expected to be completed within weeks.

This study “will consider the cost of the proposed elements of the small-scale resort, which include 18 cabins of various sizes, 25 fully hook-up RV sites and an event pavilion and, based on similar developments in other parts of the United States”, he explained.

The examination will cover “potential levels of use” at “assess the likelihood of interest in private sector investment.”

The analysis will not include infrastructure costs – electricity, water, sewage, telecommunications – and this is a strategic decision.

Decker said the goal is to “ensure that the level of surface private investment is viable before spending the resources needed to develop infrastructure designs and cost estimates.

“If the valuation indicates positive investment potential we will move forward, if it does not indicate investment potential we will reassess what improvements to current assets in the area can be made,” he said.



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Even after Biden’s words, nine energy is undervalued (NINE) https://freebassuk.com/even-after-bidens-words-nine-energy-is-undervalued-nine/ Wed, 16 Nov 2022 07:59:00 +0000 https://freebassuk.com/even-after-bidens-words-nine-energy-is-undervalued-nine/ Dragon Claws/iStock via Getty Images Nine Energy Service, Inc. (NYSE: NEW) saw its shares rise in the open market after the company released a recent quarterly report. The company seems to be benefiting from the increase in the price of oil and gas and equity market analysts have recently noted very favorable expectations for NINE’s […]]]>

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Nine Energy Service, Inc. (NYSE: NEW) saw its shares rise in the open market after the company released a recent quarterly report. The company seems to be benefiting from the increase in the price of oil and gas and equity market analysts have recently noted very favorable expectations for NINE’s business model. According to my own discounted free cash flow models, I got a valuation of almost $13.69 per share, which is higher than the current share price. The total amount of debt seems significant. However, with sufficient free cash flow generation, I think debt doesn’t seem to be an issue.

Nine Energy has links with many players in the oil and gas industry

Nine Energy Service, Inc. is a service provider to the unconventional oil and gas industry in North America and overseas. Nine’s specialization includes multi-stage horizontal wells for production, cementing, cable and coiled tubing services among many other applications.

Recall that the board of directors includes staff who sit on the board of directors of large companies. This means that Nine Energy administrators will be able to enter into contracts with relevant industry players.

Mr. Baldwin has been a director of the Company since February 28, 2017 and served on the board of directors of Beckman Production Services, Inc. prior to its merger with and into the Company on that date. He currently serves on the board of directors of Select Energy Services, Inc. (WTTR) and Oil Patch Group, Inc. Source: Board of Directors – Corporate Governance | New Energy Service

Mark Baldwin has been a director of the Company since May 10, 2013. Mr. Baldwin has been a director of KBR, Inc. (KBR) since October 3, 2014 and a director of TETRA Technologies, Inc. (TTI) since January 16, 2014. Source : Board of Directors – Corporate Governance | New Energy Service

Analysts predict sales growth of 69% in 2022 and 20% in 2023

I think analysts’ expectations are quite beneficial. For 2024, analysts have forecast that with net sales of $820 million and growth of 15.01%, EBITDA would be $173 million with an EBITDA margin of 21.10%.

Source: Marketscreener.com

Source: Marketscreener.com

2024 operating profit would be close to $132 million with an operating margin of 16% and pre-tax profit of $99.1 million. In the end, the net result would be close to 98 million dollars with a free cash flow of 97.9 million dollars and an FCF margin of 11.94%.

Balance sheet

As of September 30, 2022, with cash and cash equivalents of $21.490 million in addition to accounts receivable of $103.881 million, Nine Energy’s inventory was $52.959 million. In addition, total current assets amounted to nearly $189 million. Considering the amount of current liabilities is close to $102 million, I think Nine Energy is unlikely to face a liquidity crunch anytime soon.

Non-current assets include property, plant and equipment of $75.6 million, right-of-use operating lease assets of $35.934 million, and intangible assets of $105.840 million. Finally, the total assets are worth $407 million. Note that the asset/liability ratio is less than one, which most investors may not appreciate.

Source: 10-Q

Source: 10-Q

Liabilities include accounts payable of $38.145 million, accrued liabilities of $29.374 million and a current portion of long-term debt of $27.281 million. With a current portion of operating lease obligations of $7.438 million, total current liabilities were $102.658 million.

Long-term debt is $305 million with long-term operating lease obligations of $29.612 and total liabilities of $439.560 million. Keeping in mind that the company’s 2024 EBITDA is expected to be close to $173 million, the debt close to $333 million doesn’t seem that big.

Source: 10-Q

Source: 10-Q

My conservative case scenario involves a fair price of $13.69 per share

With customers in Norway, I believe most customers are located in the United States. With this in mind, in my view, internationalization can bring significant revenue growth in the years to come.

Source: company website

Source: company website

According to the latest quarterly report, Nine Energy generally signs Master Service Agreements with its customers. With this in mind, I believe the level of personalization and service to each client requires a great deal of attention. This means that Nine Energy will likely develop great relationships with many industry clients.

We typically enter into a Master Service Agreement with each client that provides a framework of terms and conditions for our services that will govern any future transactions or work assigned to us. Each specific job is obtained by tender or following negotiations with customers. The rate we charge is determined by location, complexity of work, operating conditions, length of contract and market conditions. Source: 10-Q

Under normal circumstances, I think the buyback program that Nine Energy is running will likely bring demand for the stock. Keep in mind that the company only acquired 0.122 million shares in September 2022. More shares repurchased will likely lower the cost of equity, which could improve Nine’s fair price.

Source: 10-Q

Source: 10-Q

Under the above conditions, I designed the following scale model. 2030 net sales are expected to be close to $914 million with sales growth of 8%, in addition to an EBITDA of $128 million and an EBITDA margin of 14%.

I forecast an FCF of $82 million with an FCF/sales of 9%. If we also include an EV/EBITDA of 12x, the exit term would be $1.53 billion. The sum of discounted free cash flow with a WACC of 14% involved $766.43 million. If we also include debt of $333 million and cash of $21 million, equity would be $454.92 million. Finally, the internal rate of return would be 5.73% with a fair price of $13.69 per share.

Source: Bersit DCF model

Source: Bersit DCF model

In very bearish conditions, I believe the fair price can reach $8.095 per share

Nine Energy could suffer significantly from a drop in the price of oil and gas or a decline in industry investment forecasts. As a result, management could sign fewer Master Service Agreements, which will likely reduce the company’s sales growth and free cash flow margins.

Even with favorable oil and natural gas prices, E&P operator activity may not increase significantly as they remain focused on operations as part of their capital plans. In addition, any unexpected significant decline in commodity prices in the future could have a material adverse effect on our business, financial condition, results of operations, cash flows and prospects. Source: 10-k

I also expect demand for the stock to decline if Nine Energy continues to receive written notices from the NYSE regarding compliance standards. Keep in mind that not trading on the NYSE will reduce the visibility of the stock and may increase the cost of equity. In short, the fair price would probably decrease.

Our common stock is currently listed on the NYSE. On January 5, 2022, we received written notification from the NYSE that we no longer met the standards for continuous listing compliance set forth in Section 802.01B of the NYSE Listed Company Manual. Source: 10-Q

I also think the new rules announced by Biden to regulate the oil and gas industry and methane emissions would affect the company:

The Environmental Protection Agency said the proposed standards would reduce methane from the oil and gas sector by 87% from 2005 levels. Source: Biden targets methane emissions with new rules on the oil and gas industry.

Under very bearish conditions, I believe Nine Energy may struggle to repay all of its outstanding debt. In the last annual report, the company noted that future free cash flow may not be sufficient to pay the company’s total financial obligations.

Our ability to make our scheduled debt payments depends on our financial condition and operating performance, which are subject to prevailing economic and competitive conditions and certain financial, business and other factors beyond our control. If our cash flow and capital resources are insufficient to fund debt service obligations, we may be forced to sell assets, seek additional capital or restructure or refinance debt. Source: 10-k

In this scenario, I used 2030 net sales of $755 million with sales growth of -2.50%, EBITDA of $106 million, and EBITDA margin of 14.5%. Furthermore, I expect an FCF close to $68.5 million with 9.5% FCF/sales.

If we use an EV/EBITDA of 10x, the 2030 exit value would be $1.057 billion. The results using a 15% discount include an enterprise value of $580.40 million and an equity valuation of $268.89 million. Finally, with a number of shares of 33.221 million, the internal rate of return would be -1.73% and the fair price would be $8.09 per share.

Source: Bersit DCF model

Source: Bersit DCF model

Conclusion

Nine Energy benefited from the recent rise in oil and gas prices. Most analysts are expecting very decent sales growth and a double-digit EBITDA margin for the next two years. Given the share buyback enacted by Nine Energy, I think the stock price will likely head north soon. In my own discounted cash flow models, the fair price appears higher than the market price. Even given Biden’s talk about new oil and gas industry rules, the company’s total debt load, and other risks, Nine Energy looks pretty undervalued.

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Brookfield Asset Management Inc. (NYSE: BAM) declares a quarterly dividend of $0.14 per share. https://freebassuk.com/brookfield-asset-management-inc-nyse-bam-declares-a-quarterly-dividend-of-0-14-per-share/ Sun, 13 Nov 2022 19:06:16 +0000 https://freebassuk.com/brookfield-asset-management-inc-nyse-bam-declares-a-quarterly-dividend-of-0-14-per-share/ On Thursday, Nov. 10, Brookfield Asset Management Inc. (BAM) (TSE: BAM.A) announced that it would institute a quarterly dividend, as reported by Zacks. Accordingly, on Friday, December 30, the financial services company will distribute a dividend payment of $0.14 per share to shareholders of record the previous Wednesday, November 30. This corresponds to a dividend […]]]>

On Thursday, Nov. 10, Brookfield Asset Management Inc. (BAM) (TSE: BAM.A) announced that it would institute a quarterly dividend, as reported by Zacks. Accordingly, on Friday, December 30, the financial services company will distribute a dividend payment of $0.14 per share to shareholders of record the previous Wednesday, November 30. This corresponds to a dividend payment of $0.56 per year and a dividend yield of 1.19%. This dividend is paid quarterly. The dividend payment is scheduled for November 29.

The dividend payout made by Brookfield Asset Management has declined by an average of 4.7% per year over the previous three years, but has increased over the past ten consecutive years. The dividend payout ratio for Brookfield Asset Management is 16.4%, indicating that the dividend is fully covered by earnings and should continue to be paid. With a forward-looking payout ratio of 16.6%, Brookfield Asset Management is expected to earn $3.38 per share in 2019, which is enough to cover its annual dividend payment of $0.56 per share.
On Friday, BAM stock rose $2.33 to $47.04 per share. 91,625 shares changed hands, for an average volume of 3,196,348 shares. The company’s market capitalization is $76.19 billion, the stock price-earnings ratio is 20.04, and the beta value is 1.27. There is a ratio of 1.44 debt to equity, a ratio of 1.31 debt to current assets and a ratio of 1.11 debt to quick assets. The company now has a 50-day moving average of $42.80, and its 200-day moving average is $46.29. Brookfield Asset Management’s lowest price in the past year was $36.33 and its highest price was $62.47.

Brookfield Asset Management’s most recent earnings report, published on the NYSE and the Toronto Stock Exchange under the symbol BAM.A, was released Aug. 11. The financial services company reported earnings of $0.34 per share for the quarter, lower than the average estimate of $0.73 per share of $0.39. Additionally, the financial services company reported earnings of $0.34 per share for the quarter, below the consensus estimate of $0.73 per share. The company’s actual sales were $23.26 billion for the quarter, which was significantly higher than the consensus forecast of $19.42 billion. Brookfield Asset Management’s return on equity was 3.02% and the company’s net margin was 4.48%. During the same period as the previous year, the company generated earnings of $1.01 per share. According to recent research results, Brookfield Asset Management will generate earnings of $2.98 per share in the current fiscal year.

Several research companies have published studies on BAM. Royal Bank of Canada raised its target price for Brookfield Asset Management shares from $62.00 to $63.00. He gave the company an “outperforming” rating in a research report released on Friday. Deutsche Bank Aktiengesellschaft lowered its price target on Brookfield Asset Management from $52.00 to $44.00 and gave the stock a “holding” rating in a research report released Wednesday, October 12. TD Securities raised its price target on Brookfield Asset Management from $72.00 to $73.00 and gave the company a “stock listing buy” rating in a research note released Thursday, September 15. Finally, a research note focusing on Brookfield Asset Management was published by StockNews.com on October 12, marking the start of the website’s coverage of the company. . They recommended that investors “sell” the company’s shares. The stock has been assigned a sell rating by an equity research analyst, a hold rating of two, a buy rating of four, and a strong buy rating by a research analyst. The consensus recommendation for Brookfield Asset Management is “Moderate Buy” and the price target for the company is $64.33, according to data provided by Bloomberg.

In other Brookfield Asset Management news, on Friday, October 7, a major shareholder known as Oaktree Capital Management Lp sold one million shares of the company. At an average price of $9.00 per share, the stock was able to fetch a total of $9,000,000.00 when it went on sale. Following the sale, the insider now owns 10,622,000 shares of the company, which have a total value of $95,598,000. The transaction was disclosed in a legal filing filed with the Securities and Exchange Commission (SEC), and that filing can be located on the SEC’s website. In other related news, a major shareholder in the company, Oaktree Capital Management Lp, sold one million shares of the company on Oct. 7. At an average price of $9.00 per share, the stock was able to earn a total of $9,000,000.00. when it went on sale. As a result of the transaction, the insider now owns 10,622,000 shares of the company, with a total value of $95,598,000. The transaction was brought to the attention of the Securities and Exchange Commission through a filing, which was later made publicly available on the SEC’s website. Additionally, the largest shareholder, Opps Topic Holdings, Llc, sold 3,963,416 shares of the company on Thursday, September 8. At an average price of $18.85 per share, the stock fetched a total of $74,710,391.60 when it was finally sold. Following the completion of the transaction, the insider now owns 12,263 shares of the company, which are worth approximately $231,157.55. The disclosure of this sale can be found here. During the last fiscal year, business insiders disposed of 8,788,416 shares with a total value of $117,322,892. Currently, business insiders hold 11.0% of the company’s total shares.

Recently, several hedge funds have adjusted the stocks they currently hold. American Century Companies, Inc. increased its holdings in Brookfield Asset Management by 0.7% in the first quarter of this year. Following the purchase of 268 additional shares during the last fiscal quarter, American Century Companies Inc. currently has a total of 38,228 shares held by the financial services provider, which are worth $2,161,000. The percentage stake in Brookfield Asset Management held by BNP Paribas Arbitrage SA increased to 35.5% during the second quarter. After purchasing an additional 277 shares in the previous quarter, BNP Paribas Arbitrage SA now owns 1,057 shares in the company held by the financial services provider. The current value of these shares is $47,000. Additionally, Guardian Wealth Management Inc. increased its holdings in Brookfield Asset Management by 0.6% in the first three months of the year. After acquiring 313 shares in the previous quarter, Guardian Wealth Management Inc. currently owns 54,530 shares of the company, which have a combined market value of $3,085,000. The percentage stake in Brookfield Asset Management held by Captrust Financial Advisors increased 2.5% during the first quarter. Following the acquisition of an additional 479 shares in the last fiscal quarter, Captrust Financial Advisors currently owns 19,877 shares held by the financial services provider, which have a combined value of $1,125,000.
Finally, Gamco Investors increased its holdings in Brookfield Asset Management by 1.3% in the first three months of the year. Following the acquisition of an additional 600 shares during the last quarter, Gamco Investors Inc., together with its subsidiaries, currently owns a total of 45,800 shares held by the financial services provider, with an estimated market value of 2,591,000 $. Institutional investors hold the shares of the company at 59.54% of the total.

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11 best sporting goods stocks to invest in https://freebassuk.com/11-best-sporting-goods-stocks-to-invest-in/ Wed, 26 Oct 2022 13:07:54 +0000 https://freebassuk.com/11-best-sporting-goods-stocks-to-invest-in/ In this article, we discuss the top 11 sporting goods stocks to invest in. You can skip our detailed analysis of these stocks and the current market situation, and go straight to the 5 best sporting goods stocks to invest in. The billion-dollar sporting goods market encompasses various product categories, including sports apparel, workout equipment, […]]]>

In this article, we discuss the top 11 sporting goods stocks to invest in. You can skip our detailed analysis of these stocks and the current market situation, and go straight to the 5 best sporting goods stocks to invest in.

The billion-dollar sporting goods market encompasses various product categories, including sports apparel, workout equipment, licensed sporting goods, and footwear. The sports and outdoor category is expected to generate $75.24 billion in sales in 2022, with China accounting for the bulk of that amount, according to Statistical. By 2025, the market volume is expected to reach $100.80 billion, and revenue is expected to grow at an annual rate of 10.24% (CAGR 2022-2025). The average revenue per user (ARPU) is expected to be $70.29 in the sports and outdoor category. Along with the sports and outdoor category, the global sportswear market is expected to reach approximately $249 billion by 2026. The global sports equipment market is also expected to reach a value of $191.62 billion by 2026. According McKinsey, despite growing health awareness, changing channel choices and growing environmental concerns, the sporting goods industry continues to evolve. The sporting goods industry has managed to return to pre-COVID-19 growth levels despite difficult economic conditions.

Some of the best sporting goods stocks to invest in right now include NIKE, Inc. (NYSE:NKE), Lululemon Athletica Inc. (NASDAQ:LULU), and Under Armour, Inc. (NYSE:UA), among others.

11 best sporting goods stocks to invest in

Our Methodology

We focused on sporting goods companies with strong business fundamentals and growth incentives for this list. Hedge fund sentiment around each stock was derived from Insider Monkey’s database, which tracks 895 hedge funds in the second quarter of 2022.

The best sporting goods stocks to invest in

11. Big 5 Sporting Goods Corporation (NASDAQ: BGFV)

Number of hedge fund holders in Q2 2022: 9

Big 5 Sporting Goods Corporation (NASDAQ: BGFV) is a California-based sporting goods company that operates 433 stores in 11 states. The Company also offers athletic footwear, apparel and sports-related accessories.

Big 5 Sporting Goods Corporation (NASDAQ: BGFV) currently pays a quarterly dividend of $0.25 per share. As of October 24, the share’s dividend yield based on the last twelve months was 8.51% with a payout ratio of 35.59%.

At the end of the second quarter of 2022, 9 hedge funds in the Insider Monkey database held stakes in Big 5 Sporting Goods Corporation (NASDAQ:BGFV), up from 12 in the prior quarter. The collective value of these holdings is over $9.8 million. Of these hedge funds, DE Shaw held the largest stake in the company, worth $2.3 million. Dmitry Balyasny’s Balyasny Asset Management and Israel Englander’s Millennium Management held 164,568 and 30,407 shares of Big 5 Sporting Goods Corporation (NASDAQ:BGFV) at the end of the second quarter.

10. On Holding AG (NYSE: ONON)

Number of hedge fund holders in Q2 2022: 18

On Holding AG (NYSE: ONON) is a Zurich, Switzerland-based premium sporting goods company that sells athletic footwear and apparel. He includes tennis legend Roger Federer as one of his co-venturers. The company first offered its shares to the general public in September 2021, through a U.S. IPO, raising $746 million.

The company has been able to steadily increase revenue over the past two years, recording 64% revenue growth on an annual basis. Wall Street is bullish on On Holding AG (NYSE:ONON). On Oct. 20, Williams Trading analyst Sam Poser upgraded On Holding AG (NYSE:ONON) to Buy from Hold with a price target of $20. Additionally, on September 21, Exane BNP Paribas analyst Aubrey Tianello launched coverage of On Holding AG (NYSE:ONON) with an outperform rating.

According to second-quarter data from Insider Monkey, On Holding AG (NYSE:ONON) was found in the public equity portfolios of 18 hedge funds, with collective holdings in the company worth $419.7 million. of dollars. Henry Ellenbogen’s Durable Capital Partners is the largest shareholder of On Holding AG (NYSE:ONON) in the second quarter of 2022, owning 7 million shares worth approximately $124 million.

09. Clarus Corporation (NASDAQ: CLAR)

Number of hedge fund holders in Q2 2022: 18

Clarus Corporation (NASDAQ: CLAR) manufactures bullets and ammunition for military and sports target shooting. The company is based in Salt Lake City, Utah, USA.

Clarus Corporation (NASDAQ:CLAR) has a fortress balance sheet with current assets of $250 million exceeding current liabilities of $69 million more than three times. Additionally, Clarus Corporation (NASDAQ:CLAR) has been actively pursuing acquisitions over the past several years, which has more than doubled its revenue from 2016 to 2021. This year, it expects revenue growth of 25% and a operating profit of 27%. %. Clarus Corporation (NASDAQ:CLAR) is also paying a dividend of $0.03 for a yield of 0.86% as of October 24.

On Sept. 30, despite lowering his price target for Clarus Corporation (NASDAQ:CLAR) from $40 to $35, Jefferies analyst Randal Konik maintained a buy rating on the stock.

Hedge fund sentiment around Clarus Corporation (NASDAQ:CLAR) increased in Q2 2022, with 18 hedge funds long in the stock, up from 17 in Q1 2022.

08. Columbia Sportswear Company (NASDAQ:COLM)

Number of hedge fund holders in Q2 2022: 19

Columbia Sportswear Company (NASDAQ:COLM) is a Portland, Oregon-based manufacturer and marketer of footwear, outerwear and athletic apparel. The operational history of Columbia Sportswear Company (NASDAQ:COLM) is remarkable, with sales and profitability generally increasing favorably. Although the company expects a relatively bad year, stocks are nonetheless attractive from a cash flow perspective. The company has maintained leveraged free cash flow of $352.1 million since December 2021.

Columbia Sportswear Company (NASDAQ:COLM) expects net sales to grow at a three-year CAGR of 9% to 11%, from the midpoint of its 2022 financial outlook, reaching $4.5 billion to $4.7 billion in 2025. Operating margin is expected to reach approximately 14% of net sales in 2025. Diluted earnings per share are expected to grow at a three-year CAGR of 12% to 15% from the mid of 2022, reaching $7.35 to $7.95 in 2025.

On Sept. 27, Cowen analyst John Kernan raised his price target on Columbia Sportswear Company (NASDAQ:COLM) to $86 from $85 and maintained an outperform rating on the stock. At the end of the second quarter of 2022, 19 hedge funds in Insider Monkey’s database held stakes worth $135.8 million in Columbia Sportswear Company (NASDAQ:COLM), up from 23 in the prior quarter. worth $217.34 million. Among the hedge funds tracked by Insider Monkey, Ken Griffin’s Citadel Investment Group is a top shareholder in Columbia Sportswear Company (NASDAQ:COLM), with 602,741 shares worth more than $43 million.

07. Hibbett, Inc. (NASDAQ: HIBB)

Number of hedge fund holders in Q2 2022: 19

Hibbett Sports, Inc. (NASDAQ: HIBB), based in Birmingham, Alabama, is a leading athletic-inspired fashion retailer with nearly 1,100 Hibbett and City Gear specialty stores located in 35 states across the United States. United.

On Aug. 26, Baird analyst Justin Kleber raised his price target on Hibbett, Inc. (NASDAQ:HIBB) to $70 from $65 and retained an outperform rating on the stock. Experts believe that Hibbett, Inc. (NASDAQ:HIBB) stock is incredibly cheap on an absolute basis, with a PE ratio of 7.25 compared to the industry median of around 9.46. The company paid shareholders a quarterly dividend of $0.25 on September 20, with a record on September 8. It has a dividend yield of 1.80% and a payout rate of 13.02% as of October 24.

19 out of 895 hedge funds tracked by Insider Monkey held positions in Hibbett, Inc. (NASDAQ:HIBB) at the end of the second quarter. The combined value of these interests was $91.35 million. Dmitry Balyasny’s Balyasny Asset Management was the largest shareholder at the end of the second quarter, with 430,309 shares worth $18.8 million.

Just like NIKE, Inc. (NYSE: NKE), Lululemon Athletica Inc. (NASDAQ: LULU) and Under Armour, Inc. (NYSE: UA), Hibbett, Inc. (NASDAQ: HIBB) is one of the best items in sport. stocks to invest in.

06. Vista Outdoor Inc. (NYSE: VSTO)

Number of hedge fund holders in Q2 2022: 25

Vista Outdoor Inc. (NYSE: VSTO) is an American manufacturer and marketer of outdoor sports and recreation products. Vista Outdoor Inc. (NYSE: VSTO) sells over 40 labels. The recent acquisition of Simms Fishing Products added approximately $110 million in net sales, bolstering the company’s top line. The company has a market capitalization of $1.50 billion with a P/E ratio of 2.99 as of October 24 compared to the industry median of 9.46. The stock is therefore relatively cheap and is one of the best sporting goods stocks to invest in.

Analysts are positive about the outlook for Vista Outdoor Inc. (NYSE: VSTO). On September 20, Jefferies analyst Anna Glaessgen launched Vista Outdoor Inc. (NYSE: VSTO) coverage with a Hold rating and a price target of $26. B. Riley analyst Eric Wold on Sept. 19 reiterated a buy rating on Vista Outdoor Inc. (NYSE: VSTO) with a price target of $51.

Of the 895 hedge funds surveyed by Insider Monkey for their Q2 2022 holdings, 25 had invested in Vista Outdoor Inc. (NYSE: VSTO). Of these, Jeffrey Gates’ Gates Capital Management is the largest investor in Vista Outdoor Inc. (NYSE: VSTO). She owns 5.5 million shares worth $155 million.

Along with NIKE, Inc. (NYSE: NKE), Lululemon Athletica Inc. (NASDAQ: LULU) and Under Armour, Inc. (NYSE: UA), Vista Outdoor Inc. (NYSE: VSTO) is one of the top sporting goods . stocks to invest in.

Click to read on and see the top 5 sporting goods stocks to invest in.

Suggested items:

Disclosure. None. 11 best sporting goods stocks to invest in is originally published on Insider Monkey.

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Fidelity predicts huge push into digital asset space with 100 new hires https://freebassuk.com/fidelity-predicts-huge-push-into-digital-asset-space-with-100-new-hires/ Sun, 23 Oct 2022 08:50:00 +0000 https://freebassuk.com/fidelity-predicts-huge-push-into-digital-asset-space-with-100-new-hires/ Investment manager Fidelity Investments hires 100 new people for its digital assets unit. Which suggests that the firm wants to grow its crypto business in the bear market. Bloomberg first reported the recruiting exercise. Stating that the new hires will increase the number of Fidelity Digital Assets employees to approximately 500 by the end of […]]]>

Investment manager Fidelity Investments hires 100 new people for its digital assets unit. Which suggests that the firm wants to grow its crypto business in the bear market.

Bloomberg first reported the recruiting exercise. Stating that the new hires will increase the number of Fidelity Digital Assets employees to approximately 500 by the end of the first quarter of 2023.

With over $10.3 trillion in assets under management, Fidelity is one of the largest investment managers in the world. However, he has shown significant interest in digital assets over the past few years. Creation of a digital assets unit in 2018.

Pro-crypto movements continue

Since then, the unit has been a leading institutional advocate for digital assets. And pushed the reader for adoption. It started by offering institutional clients access to trading and custody of digital assets.

Earlier this year, Fidelity announced plans to give participants in its 401(k) plan the option to invest a portion of their retirement savings in Bitcoin.

However, the announcement drew strong reactions from the Department of Labor and some members of Congress.

Meanwhile, Fidelity Digital Asset also launched two exchange-traded funds in April to track companies in the crypto and metaverse sector.

Fidelity strengthens its workforce

It’s no surprise that Fidelity is taking advantage of the bear market to bolster its staff.

According to the Bloomberg report, it is adding employees to divisions such as customer services, business development, operations, technology, compliance, marketing and business development.

A source familiar with the decision added that the hires would be spread across the unit’s regional offices in New York, Dublin, Boston and London.

The current bear market offers the company a perfect opportunity to easily recruit talented professionals. As several crypto-focused companies have been forced to downsize.

While some employees have lost their jobs due to the bankruptcy of crypto-focused companies, thousands more have been laid off.

However, Fidelity’s decision to hire now also suggests the level of conviction it has in the crypto space, given that over $2 trillion has been wiped from market capitalization since the peak at the end of 2019. Last year.

To be[In]Crypto’s Latest Bitcoin (BTC) Analysis Click Here

Disclaimer

All information contained on our website is published in good faith and for general information purposes only. Any action the reader takes on the information found on our website is strictly at their own risk.

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Johnson & Johnson experiences unusually high options volume (NYSE:JNJ) https://freebassuk.com/johnson-johnson-experiences-unusually-high-options-volume-nysejnj/ Thu, 20 Oct 2022 09:09:09 +0000 https://freebassuk.com/johnson-johnson-experiences-unusually-high-options-volume-nysejnj/ The volume of options trading activity for Johnson & Johnson (NYSE:JNJ) was particularly high on Tuesday. This activity has been observed. Stock market participants bought 33,965 call options on the underlying stock. This represents a 16% increase in trades from the typical volume of 29,198 call options traded. On Tuesday, October 18, the latest quarterly […]]]>

The volume of options trading activity for Johnson & Johnson (NYSE:JNJ) was particularly high on Tuesday. This activity has been observed. Stock market participants bought 33,965 call options on the underlying stock. This represents a 16% increase in trades from the typical volume of 29,198 call options traded.

On Tuesday, October 18, the latest quarterly earnings report from Johnson & Johnson (NYSE: JNJ) was made available to the public. The company reported earnings per share (EPS) for the period at $2.55, $0.06 higher than analysts’ consensus estimate of $2.49. Johnson & Johnson had a return on equity of 36.14% and its net margin was 19.21%. These two figures are very impressive. The company’s sales for the quarter were $23.79 billion, lower than analysts’ projections of $23.44 billion before the quarter began. During the same period a year earlier, the company reported earnings of $2.60 per share. The most recent quarterly report reveals that there was a 1.9% increase in revenue on an annual basis. Sell-side analysts expect Johnson & Johnson to earn $9.96 per share in the current fiscal year. This estimate was derived from historical data.
As of noon during Tuesday’s trading session, the price of NYSE:JNJ fell $0.71, taking it to a new all-time low of $165.88. The company’s share count totaled 439,488, significantly lower than its typical volume of 7,068,923 shares. Johnson & Johnson’s current stock price is $186.69, which is above its 52-week low of $155.72 but below its 52-week high of $186.69. The ratio of current assets to total assets is 1.42, the ratio of quick assets to current assets is 1.17 and the ratio of total assets to current assets is 0.37. The 50-day simple moving average for this security is $165.04 and the 200-day simple moving average is $172.87. The company has a price/earnings ratio of 24.05, a price/earnings/growth ratio of 3.15 and a beta value of 0.56. The company’s market capitalization currently stands at $436.13 billion.
Several studies by research analysts on Johnson & Johnson have been made public. In a research note published on Wednesday, July 20, SVB Leerink reduced its price target on Johnson & Johnson shares from $200.00 to $194.00. Citigroup announced on Wednesday (October 5th) that it had lowered its price target on Johnson & Johnson shares from $201.00 to $198.00. The announcement was made in a research note published that day. In a research note distributed on July 13, Wells Fargo & Company announced that it was raising its price target for Johnson & Johnson stock from $190.00 to $195.00 and raising its rating from “overweight” to Johnson & Johnson. Both of these changes were made in conjunction with Johnson & Johnson. Barclays began covering the Johnson & Johnson stock with the publication of a research note on Monday, which marked the start of the bank’s coverage of the stock. They assigned an “equal weight” rating to the title and predicted that it will reach $175.00 in price. In a research note distributed Friday, Bank of America lowered its price target on Johnson & Johnson stock from $185.00 per share to $178.00 per share and assigned a “neutral” rating to the stock. A “neutral” rating was also assigned to the stock by Bank of America. The stock has been recommended by five equity research analysts, a buy rating by five analysts, and a strong buy rating by one analyst. Five equity research analysts gave the stock a hold rating. The company is currently rated as having a “moderate buy” consensus recommendation, and Bloomberg.com reports that the company’s price target is currently rated as having a consensus value of $187.18.
On September 14, Johnson & Johnson publicly announced that the company’s board of directors had given its approval to a share buyback plan that allows the company to repurchase up to $5 billion in stock. Board approval of the plan allows the company to repurchase up to $5 billion in stock. Since this repurchase authorization was implemented, the company now has the power to buy up to 1.2% of its shares on the open market. This authority was not present before the implementation of this buy-back authorisation. When a company says it wants to buy back its shares, it usually means the board thinks the stock price should drop.

Recent events have caused several institutional investors and hedge funds to adjust the percentage of company shares they hold. During the third quarter, Community Bank of Raymore increased its stake in Johnson & Johnson by a total of 27.6%. Community Bank of Raymore now owns a total of 6,935 shares, valued at $1,130,000 following the successful completion of the transaction, which resulted in an additional 1,500 shares. During the third quarter of 2018, Access Financial Services Inc. increased the percentage of Johnson & Johnson shares it held by 3.1%. After purchasing an additional 347 shares during the relevant period, Access Financial Services Inc. now owns 11,436 shares of the company, with a combined value of $1,868,000. This brings the total number of shares held by the company to 11,436. During the third quarter, Clearview Wealth Advisors, LLC achieved a 2.3% increase in the number of Johnson & Johnson shares comprising all of its assets. Clearview Wealth Advisors LLC now owns a total of 5,567 shares of the company, which are worth $910,000 after purchasing 123 additional shares during the reporting period. This brings the total number of shares held by the company to 5,567. During the third quarter, Regent Investment Management LLC added an additional 1.1% of Johnson & Johnson shares to its holdings, bringing the total percentage of shares of the company which she held at 99.9%. After purchasing an additional 684 shares during the reporting period, Regent Investment Management LLC now owns 62,211 shares of the company, giving the holdings a value of $10,162,000. During the relevant period, these shares were acquired. Last but not least, Investment Research & Advisory Group Inc. increased the number of Johnson & Johnson shares it owns by 1.1% during the third quarter of this fiscal year. Investment Research & Advisory Group Inc. now owns 15,144 shares of the company, valued at $2,474,000 after purchasing an additional 163 shares of the company during the period in question. Most of the company’s shares are held by institutional shareholders, who represent 68.59% of the total.

With its many different subsidiaries, Johnson & Johnson is responsible for the research, development, production and distribution of a wide assortment of medical products worldwide. The Company’s consumer health division sells oral care products under the LISTERINE brand, baby care products under the JOHNSON’S and AVEENO Baby brands, and skin care products under the AVEENO, CLEAN & CLEAR and DR. marks, respectively. These brands are used for products that care for your teeth, your baby, and your skin in that order.

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MOJO DATA SOLUTIONS, INC. Management report and analysis of the financial situation and operating results. (Form 10-K) https://freebassuk.com/mojo-data-solutions-inc-management-report-and-analysis-of-the-financial-situation-and-operating-results-form-10-k/ Mon, 17 Oct 2022 21:15:05 +0000 https://freebassuk.com/mojo-data-solutions-inc-management-report-and-analysis-of-the-financial-situation-and-operating-results-form-10-k/ Forward-looking statements The following discussion and analysis of the Company’s consolidated financial position and results of operations relate to the years ended December 31, 2014 and 2013 and should be read in conjunction with the consolidated financial statements and accompanying notes to those consolidated financial statements that appear elsewhere in this report. Our discussion includes […]]]>

Forward-looking statements

The following discussion and analysis of the Company’s consolidated financial position and results of operations relate to the years ended
December 31, 2014 and 2013 and should be read in conjunction with the consolidated financial statements and accompanying notes to those consolidated financial statements that appear elsewhere in this report. Our discussion includes forward-looking statements based on current expectations that involve risks and uncertainties, such as our plans, goals, expectations and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements due to a number of factors. We use words such as “anticipate”, “estimate”, “plan”, “project”, “continue”, “ongoing”, “expect”, “believe”, “intend”, ” may”, “will”, “should”, “could”, and similar expressions to identify forward-looking statements. As used in this report, the terms “MOJO”, the “Company”, “we”, “our” , “our” and similar terms mean Mojo Data Solutions, Inc.a Porto Rico society.



7







Company Overview


Since the conclusion of the asset purchase agreement on January 31, 2014 (see note 2 to the consolidated financial statements for details of the transaction), we have refocused the Company’s business plan and strategy to develop and monetize the intellectual property assets we purchased from MDS. Prior to the transaction, the Company served as a holding company for our predecessor’s wholly-owned subsidiary, Authentic Teas Inc.a company incorporated in the province of Ontario, Canada on July 8, 2010 (“AUTT Canada”). AUTT Canada historically sold herbal teas online.

Consolidated operating results

Year ended December 31, 2020 compared to the year ended December 31, 2019

During the year ended December 31, 2020the Company generated revenues of $0
from an unrelated party. During the year ended December 31, 2019 the Company generated revenues of $0of a related party.

During the year ended December 31, 2020the Company had general and administrative expenses of $98,369 compared to $684,101 during the year ended
December 31, 2019. Majority of expenditures for the year ended December 31, 2020
corresponded to professional fees related to regulatory filings.

During the year ended December 31, 2020 and 2019, the Company had interest expense of $0.0 and $0.0respectively.

The above resulted in a net loss of $98,369 during the year ended December 31, 2020 compared to a net loss of $688,517 during the year ended December 31, 2019. The Company attributes the decrease in net loss to lower professional fees.

Cash and capital resources




The Company's working capital as of December 31, 2020 and 2019 is summarized as
follows:



                                December 31, 2020       December 31, 2019

Current Assets                 $                 0     $            34,339
Current Liabilities            $           (98,369 )   $          (684,101 )
Working Capital (Deficiency)   $           (98,369 )   $          (649,762 )




8







The Company's cash flow for the years ended December 31, 2020 and 2019 is
summarized as follows:



                                                        December 31, 2020       December 31, 2019

Cash (used in) operating activities                    $          (254,468 )   $          (445,169 )
Cash provided by (used in) investing activities        $           179,766     $           (11,525 )
Cash provided by financing activities                  $            39,140     $           493,129
Net increase (decrease) in cash and cash equivalents   $           (37,174 )   $            36,435




From December 31, 2020we had a working capital deficit of $96,533 compared to a working capital requirement of $649,762 of the December 31, 2019an improvement of $553,229. The variation is mainly attributable to the effects of the MDS asset purchase agreement which resulted in a decrease in debt.

We anticipate that our cash on hand and the revenue we expect to generate from our operations will not be sufficient to meet all of our cash requirements for the next twelve month period. We require funds to allow us to meet our minimum current and ongoing expenses as we currently do not generate revenue to meet our operating and capital expenditures. We currently have no additional sources of funding committed and may not be able to secure additional funding. To acquire additional funding, we plan to raise this additional capital primarily through equity and debt financing, provided such funding is available to us. The issuance of additional equity securities by us could result in a material dilution of the interests of our current shareholders. There can be no assurance that we will be able to obtain the additional funds necessary to carry on our business or that additional financing will be available to us if needed or, if available, that it can be obtained at commercially reasonable terms. If we are unable to obtain the required additional financing in a timely manner, we will not be able to meet certain obligations as they come due and we will be forced to reduce or possibly even cease our operations.

Off-balance sheet arrangements:

We do not have any arrangements, financings or other off-balance sheet relationships with unconsolidated entities or other persons, also known as “special purpose entities” (SPEs).

© Edgar Online, source Previews

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DMart results: Avenue Supermart’s second-quarter net profit jumped 29% https://freebassuk.com/dmart-results-avenue-supermarts-second-quarter-net-profit-jumped-29/ Sat, 15 Oct 2022 09:03:16 +0000 https://freebassuk.com/dmart-results-avenue-supermarts-second-quarter-net-profit-jumped-29/ DMart Results: Avenue Supermart has announced its quarterly results for the recently ended September 2022 quarter. Due to lower expenses (both quarter-on-quarter and year-on-year), the company saw an almost 29% increase in net profit after tax. As of Q2FY23, the company’s net profit after tax amounts to ₹730.48 crore against ₹564.03 crore in Q2FY22. The […]]]>

DMart Results: Avenue Supermart has announced its quarterly results for the recently ended September 2022 quarter. Due to lower expenses (both quarter-on-quarter and year-on-year), the company saw an almost 29% increase in net profit after tax. As of Q2FY23, the company’s net profit after tax amounts to 730.48 crore against 564.03 crore in Q2FY22.

The company has also managed to improve its profit after tax (PAT) as it declared a PAT of 790.35 crore in the recently ended September 2022 quarter against 753.34 crore in Q2FY22.

DMart’s total comprehensive income in Q2FY23 was 727.19 crore as it stood at 561.16 crores in Q2FY22. As of Q2FY23, the company’s total comprehensive income was reported at 678.77 crores. Thus, the Indian retail company that operates a chain of hypermarkets in India managed to improve its overall result.

The company reported improved spending on both a quarterly (QoQ) and yearly (YoY) basis. As of Q2FY23, Avenue Supermart reported total spend at 9,638.07 crore as it stood at 11,997.25 crores in Q2FY22. In Q1FY23, its total expenses amounted to 8,934 crores. Thus, the company managed to reduce its expenses on a quarterly and annual basis.

The retail company also reported an improvement in its total assets in the first six months of the current fiscal year. The company reported total assets of 17152.11 crore after the end of the quarter from July to September 2022 while its total assets stood at 15,403.96 crore at the end of FY22. Thus, in the first six months of the 2022-23 financial year, Avenue Supermart recorded an increase of around 11.35% in its total assets.

The total non-current assets of the company have been presented to 11,791.72 crore in Q2FY23 while its total current assets stand at 5360.39 crores after the end of the September 2022 quarter.

However, the company’s equity and liabilities also increased in the first six months of the current fiscal year. After the end of the September 2022 quarter, the company’s total equity and liabilities are 17,152.11 crore which stood at 15,403.96 crores after the end of the 2021-22 financial year.

Catch all the company news and updates on Live Mint. Download the Mint News app to get daily market updates and live trade news.

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Gap, Inc. Stock: 5 Reasons We’re Staying Away (NYSE: GPS) https://freebassuk.com/gap-inc-stock-5-reasons-were-staying-away-nyse-gps/ Thu, 13 Oct 2022 07:27:00 +0000 https://freebassuk.com/gap-inc-stock-5-reasons-were-staying-away-nyse-gps/ Allison Dinner/Getty Images News The Gap, Inc. (New York Stock Exchange: GPS) operates as a clothing retail business. The company offers apparel, accessories and personal care products for men, women and children under the Old Navy, Gap, Banana Republic and Athleta brands. Its products include denim, t-shirts, fleeces and khakis; glasses, jewellery, shoes, handbags and […]]]>

Allison Dinner/Getty Images News

The Gap, Inc. (New York Stock Exchange: GPS) operates as a clothing retail business. The company offers apparel, accessories and personal care products for men, women and children under the Old Navy, Gap, Banana Republic and Athleta brands. Its products include denim, t-shirts, fleeces and khakis; glasses, jewellery, shoes, handbags and perfumes; and fitness and lifestyle products for use in yoga, training, sports, travel and everyday activities for women and girls.

We published an article on Seeking Alpha in June 2022, titled: “Mind the Gap”. In this article, we have classified Gap shares as “sold”, due to poor first quarter financial performance, inventory management issues and overly high dividends. We’ve also highlighted some of the macro factors that are creating headwinds for the company, including consumer confidence and rising energy prices.

Chart
Data by YCharts

Since our last article, Gap stock price is up 7%, outperforming the broader market, which is down 6%.

Today, we revisit Gap and provide an up-to-date view of the business, taking into account the latest news, developments and earnings release.

Let’s start with the latest earnings numbers.

Q2 financial results

Although the firm beat analysts’ estimates, financial performance in the second quarter, like the first quarter, was poor.

results table

Status of operations (GPS)

Sales fell, gross profit fell, margins shrunk, and as a result, the company’s net loss was $49 million, compared to a profit of $258 million in the prior quarter.

As noted by management, poor sales results were attributable to inventory delays related to continued global supply chain disruptions, persistent size and assortment imbalances and strategic store closures, as well as to an unfavorable impact of exchange rates.

On the other hand, the main causes for the increase in costs were: the increase in average unit costs, a result of the increase in air freight expenses and increases in raw material prices, as well as the increase in promotional activities and inventory write-down.

As we anticipated earlier, macroeconomic headwinds and inventory management issues continued to negatively impact Gap’s financial performance, contributing significantly to poor second quarter results. If we look at the previously mentioned macroeconomic factors, we can see that no dramatic improvement has occurred over the past few months.

Consumer confidence in the United States remained at extremely low levels, which could have a further negative impact on financial performance.

line chart confidence

US consumer confidence (Tradingeconomics.com)

While oil prices have come off their highs, they remain high. In addition, the recent announcement by OPEC+, regarding production cuts, makes the uncertainty around energy prices even higher.

line chart with price

WTI Price (Tradingeconomics.com)

We believe that weak consumer confidence will likely lead to a further decline in demand for Gap’s products, while high energy prices are expected to further drive up costs.

The company also withdrew its annual guidance, which may be related to the high short-term uncertainty, which we believe is quite troubling for shareholders and potential investors.

For these reasons, we see no justification for changing our bearish view on the stock.

Dividend

In August, the company declared a dividend of $0.15 per share. We believe this is not the best capital allocation in the current environment, especially considering the poor financial performance and net loss in the second quarter. We have already mentioned that dividends are likely to be unsustainable in the near future, so we interpret this news as negative.

If you are considering investing in Gap shares for the dividend, keep in mind that unsustainability may lead to reduced dividends over the next few quarters, which could also negatively impact the stock price. stock.

We can also see that many GPS competitors and peers do not pay dividends, or those that do pay, have significantly lower payout ratios. It also signals to us that a dividend cut may be on the horizon for GPS.

dividend statistics table

Dividends (Looking for Alpha)

Departure of the CEO

In July 2022, the company’s CEO unexpectedly resigned. Such events are often a signal that the company is not moving in the right direction. In our opinion, this can be a warning sign and should not be ignored by investors when making an investment decision.

cutting jobs

In September, the company announced plans to cut 500 corporate jobs as a cost-cutting measure. While job cuts can be an effective cost-cutting measure, it’s likely just another warning sign that the company is in financial trouble.

Financial ratios

Evaluation

The following chart compares some of Gap’s key valuation ratios with its peers.

assessment board

Evaluation (Looking for Alpha)

We can see that both in terms of P/E and P/CF, GPS is trading at a significant premium to its peers. We believe that such an overvaluation is not justified, especially in the current market environment. For this reason, in our view, there is substantial downside risk at current price levels.

Profitability

Additionally, profitability ratios indicate that GPS is relatively unattractive compared to its peers.

profitability table

Profitability (Looking for Alpha)

EBIT, EBITDA and net income margins are much worse than those of its peers. All of this shows that the company is doing much worse than its competitors in terms of converting their sales into profit. Another reason why the valuation is not justified, in our opinion.

Balance sheet ratios

balance sheet

Balance sheet (MRQ) (Looking for Alpha)

Current and quick ratios give an indication of a company’s financial flexibility and ability to meet short-term financial obligations. We prefer companies that have current and quick ratios greater than one, which means they have more current assets than current liabilities. As we can see, the GPS is well below 1, in terms of quick ratio, and also compares poorly to its peers. This could mean that GPS could have problems in the near future, especially if the headwinds mentioned above continue over the next few quarters.

to summarize

In our view, the company’s financial performance remains poor. Net sales and profits have declined, while costs have increased. The macroeconomic environment remains difficult, which should further negatively impact Gap’s performance in the short term.

Declaring a dividend, while reporting a net loss, is an unattractive and unsustainable way to allocate capital.

The unexpected departure of the CEO could be another warning sign that the company is in trouble.

The company compares poorly to its peers and competitors, in terms of valuation, profitability and balance sheet ratios, which makes Gap an even more unattractive investment option.

For these reasons, we are maintaining our “sell” rating.

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The balance sheet of the US agricultural sector has improved significantly compared to 2020 – AgFax https://freebassuk.com/the-balance-sheet-of-the-us-agricultural-sector-has-improved-significantly-compared-to-2020-agfax/ Mon, 10 Oct 2022 23:54:09 +0000 https://freebassuk.com/the-balance-sheet-of-the-us-agricultural-sector-has-improved-significantly-compared-to-2020-agfax/ Mid-season soybean field. Photo: University of Minnesota The net worth of U.S. farms in 2022 is 27.7% higher than in 2017 and 42.7% higher than in 2012. Over the past 10 years, net farm income has been above the long-term average. term (i.e. the average from 2007 to 2022) from 2012 to 2014, and in […]]]>

Mid-season soybean field. Photo: University of Minnesota

The net worth of U.S. farms in 2022 is 27.7% higher than in 2017 and 42.7% higher than in 2012. Over the past 10 years, net farm income has been above the long-term average. term (i.e. the average from 2007 to 2022) from 2012 to 2014, and in 2021 and 2022, but below the long-term average from 2013 to 2020.

Thus, the increase in farm equity is due to a more than relatively high net farm income. This article deals with the evolution of the balance sheet of the American agricultural sector as well as the liquidity and solvency ratios.

Trends in Real Assets and Debt

Before analyzing the current balance sheet of the agricultural sector, we will review the trends in real assets and real debt. Figure 1 presents the actual values ​​of US agricultural sector assets and debt using 2021 as the base year. With the exception of 2022, values ​​for each year represent end-of-year values.

Prior to 2012, the peak of real assets occurred in 1979 at a value of $2.837 trillion. In 2012, real assets in the agricultural sector totaled $3.048 trillion. Since 2012, real assets have exceeded $3 trillion. Real assets are expected to reach a new high of $3.618 trillion in 2022. This represents an increase of 3.4% from the previous peak in 2021.

Click on the image to enlarge

Real agricultural sector debt in 2022 is expected to reach $467.9 billion, down 1.3% from the previous year. If realized, the decline in real farm debt in 2022 would represent the first decline in total debt since 2012. Current farm sector debt is 36.1% higher than the 2012 value and 10.0% higher at 2017 value.

The projected equity of the agriculture sector in 2022 is $3.15 trillion, which represents an increase of 4.2% over the previous year. The real equity of the agricultural sector in 2022 is 16.5% higher than the value in 2012 and 10.6% higher than the value in 2017.

Balance sheet of the agricultural sector

Table 1 presents the balance sheet of the US agricultural sector for 2012, 2017 and 2022. The values ​​in Table 1 represent nominal values ​​rather than inflation-adjusted values. The 2012 and 2017 balance sheets represent the year-end balance sheets. The 2022 balance sheet represents forecast values, which have been updated on September 1, 2022.

Click on the image to enlarge

The predicted values ​​for 2022 for animals and products, machinery and motor vehicles, and real estate were higher than their respective values ​​in 2012 and 2017. In contrast, the values ​​for financial assets, purchased inputs, and stored crops were higher in 2012 than they were in 2012. 2022. The increase in property values ​​over the past 10 years is particularly noteworthy. Real estate values ​​were 53.7% higher in 2022 than they were in 2012.

AgFax Grain News

Unable to display feed at this time.

Total farm debt in 2022 was 66.7% higher than total farm debt in 2012. Most of the increase can be attributed to an increase in real estate debt, which increased by 97.2%. Despite net farm income from 2013 to 2020 being below the long-term average, farm equity in 2022 was 42.7% higher than in 2012.

A common size balance sheet for the US agricultural sector is shown in Table 2. Common size balance sheets use percentages rather than actual dollars and are useful for comparing balance sheets across farms or years. The percentage of assets represented by financial assets, purchased inputs, stored crops and animals and products was 12.2% in 2012, 8.7% in 2017 and 8.5% in 2022. Machinery and motor vehicles accounted for 8.4% to 9.2% of the total. assets in 2012, 2017 and 2022. Currently, real estate accounts for approximately 83% of total assets.

Click on the image to enlarge

Non-real estate debt as a percentage of total assets in 2022 was lower than in 2012. Conversely, real estate debt in 2022 was somewhat higher as a percentage of total assets than it was in 2012 and in 2017. Non-real estate debt as a proportion of non-real estate assets is currently 23.8% while real estate debt as a proportion of real estate assets is 10.7%.

Total farm debt as a percentage of total assets (i.e., debt-to-asset ratio) in Table 2 ranged from 11.3% in 2012 to 13.0% in 2017. Long-term trends in the debt-to-asset ratio for the US agricultural sector will be further discussed below.

Liquidity ratios

The USDA-ERS reports the average current ratio and average working capital to value of farm production since 2009. Working capital is calculated by subtracting current liabilities such as operating debt and current portion term debt of current assets such as financial assets, inventories of purchased inputs, and inventories of crops and marketable livestock.

The average current ratio for the agricultural sector increased from 2.87 in 2012 to 1.59 in 2016, then increased from 1.63 in 2017 to 2.37 in 2021. The current ratio projected for 2022 is 2.16. A commonly used reference for the current ratio is 2.

The average ratio of working capital to the value of agricultural production fell from 0.37 or 37% in 2012 to 0.16 in 2016, 2017 and 2018, then increased from 0.18 in 2019 to 0.25 in 2021. The projected ratio of working capital to the value of agricultural production for 2022 is 0.21 or 21%.

A commonly used benchmark for this ratio is 20%. Although not extremely high, the liquidity ratios in 2022 are much better than the ratios recorded from 2015 to 2020.

Solvency ratios

Solvency ratios, such as the debt-to-asset ratio, provide an indication of the farm’s ability to repay all of its financial obligations if all assets are sold, as well as an indication of the ability to continue operations as a a viable farm business after a financial hardship, such as a drought.

Figure 2 illustrates the debt-to-asset ratio of the US agricultural sector since 1973. The debt-to-asset ratio peaked in 1985 at 22.2%. The debt-to-asset ratio has been below 15% since 1999. The debt-to-asset ratio of 2022, at 12.9%, is one full percentage point lower than the debt-to-asset ratio of 2020, which represented the debt-to-asset ratio of highest asset since 2002.

Click on the image to enlarge

conclusion

The balance sheet for the U.S. agricultural sector represents a marked improvement over the 2020 balance sheet. The main reasons for the improvement in financial conditions are the strong net farm income recorded in 2021 and 2022, and recent increases in land values. Currently, the liquidity and solvency of the US agricultural sector is relatively strong.

This article focused on the US balance sheet of the agricultural sector. Regional changes in the balance sheet are probably quite different from changes at the national level. Differences in regional and national balance sheets reflect differences in how land values ​​have adjusted in recent years, and regional differences in the composition of businesses. A future article will compare common-size balance sheets in the United States with those of full-time farms.

Michel Langemeier

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