Re: Earnings quality for IBM, Intel, and Phoenix
I ignore stated earnings and "one-time" gains and losses and
focus on book value/share. Here are the numbers for IBM:
Date Equity Shares Book
1/1/94 $19,738 573.0 34.45
1/1/95 $23,413 587.5 39.85
1/1/96 $22,423 552.4 40.59
3/31/96 $21,820 544.3 40.09
6/30/96 $21,528 533.9 40.32
9/30/96 $21,368 521.8 40.95
12/31/96 $21,628 513.4 42.13
3/31/97 $19,951 501.7 39.77
Annual increase: 6.4% SI Reported P/E: 13.9
Here are the numbers for Intel:
Date Equity Shares Book
1/1/94 7,500,000 839,758 8.93
4/1/94 8,142,000 839,200 9.70
7/1/94 8,328,000 825,400 10.09
10/1/94 9,052,000 828,800 10.92
1/1/95 9,267,000 829,000 11.18
4/1/95 10,007,000 828,200 12.08
7/1/95 10,667,000 823,500 12.95
10/1/95 11,126,000 821,200 13.55
1/1/96 12,140,000 821,200 14.78
4/1/96 12,901,000 822,400 15.69
7/1/96 13,884,000 824,300 16.84
10/1/96 14,964,000 820,600 18.24
1/1/97 16,872,000 830,000 20.33
Annual increase: 31.5% SI Reported P/E: 22.7
Here are the numbers for Phoenix:
Date Equity Shares Book
9/30/93 31,481 13,743 2.29
12/31/94 40,605 14,775 2.75
3/31/95 42,183 14,898 2.83
6/30/95 44,936 15,103 2.98
9/30/95 50,418 15,103 3.34
12/31/95 53,338 15,307 3.48
3/31/96 65,185 15,896 4.10
6/30/96 69,220 16,844 4.11
9/30/96 89,577 18,327 4.89
12/31/96 90,708 18,282 4.96
3/31/97 94,000 18,360 5.12
Annual increase: 25.8% SI Reported P/E: 14.7
Since IBM is now overpriced, it's not possible for them to increase
book/share by repurchasing undervalued shares. It's too bad that
Phoenix and Intel have chosen not to reduce the number of shares as
well. |
