Paul, I added to HELE here. I continue to like this growth company that is valued priced, IMO.
I like their strong cash flow, valuations, strongly rising estimates, small debt, brands, small market cap and float, steady earnings, Value Line "1" rating, Stock Scouter "10" rating, and Morningstar ratings (B, A-, A-). Heck, the IBD scores are even good and the SSG software I run gives it a "buy" with a sell at $33.
FWIW, here are my notes:
Company: HELE
Date: 7/23/03
2004's expected earnings: $1.69
Estimated 5 yr. EPS growth rate: 9
P/E maximum if not 8.5: 10
Graham Fair Value: $33.31
Current Price: $18.78
$ difference: $14.53
Percent Growth to Fair Value: 77.39%
5/13/03: "Sales have increased in 33 of the past 36 quarters, with net income increasing in 32 of these 36 quarters, demonstrating consistent financial performance over the past nine years. Next year sales are expected to surpass $500 million for the first time in our Company's 35 year history. Based upon the momentum we have experienced over the past year, and our expectation for that momentum to continue through the current year, we are anticipating fiscal year 2004 to be another record year in both sales and earnings.
From 2002 Annual Report: Delivering on our commitment to product innovation, Helen of Troy introduced 50 new products at the 2002 International Housewares Show in Chicago. New product introductions included over fifteen new Dr. Scholl's massager products. These newly introduced foot massagers incorporate the most sought after consumer preferred features such as toe-touch control, acupressure rollers, interchangeable massage attachments and multiple settings for heat, massage and invigorating bubbles. We also introduced various new products in our hair care appliance and personal care product lines.
HELE added 28,000 new stores in 2001 in a dramatic shift from direct sales towards distribution channels. They rolled out 50 new products in January 2002 and are planning 12 new offering during fiscal 2002 (VL July 2002). Retail stores sales now account for 60% of total sales, up from 40% a year ago. (VL Oct. 2002).
Helen of Troy designs and develops hair-care appliances such as hair dryers, curling irons, brush irons, lighted mirrors, and hairsetters. Brands include Vidal Sassoon (under license from Procter & Gamble), Revlon(under license from Revlon), Sunbeam, and Dr. Scoll’s. The products are marketed to retailers, distributors, and the professional hair-care market in the United States, Canada, Mexico, and Europe. Approximately 96% of the company's products are made for consumption in the U.S. |
