Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Fundamental Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: bruwin who wrote (2043)	8/5/2012 9:11:06 PM
From: The Ox	Read Replies (1) \| Respond to of 4720

*JOY - Joy Global* - market cap $5.3 billion - stock price $50.58 *Value proposal.* Gross profit margin at 33.4% vs. industry avg of 28.2% Net profit margin at 14.1% vs. industry avg of 8.6%. Operating margin at 21% vs. industry avg of 13% PE of 7.4 vs. industry avg of 12.6 PEG of 0.4 vs. industry avg of 0.9 P/B of 2.3 vs. industry avg of 3.3 Return on Equity 35.9% vs. industry avg of 30.3% Return on Assets 14.5% vs. industry avg of 8.3% EPS 2007/2.50 2008/3.46 2009/4.38 2010/4.41 2011/5.90 avg EPS growth past 4 years 24.8% EDIT - I intended to point out that price to sales is at 1, in line with the industry avg. Understandably, JOY's management has been more cautious about the future lately and the analyst community have reduced projections for 2013. Many are now speculating that EPS in 2013 will be "flat to up a few % points" over 2012. Looking back at the past, when EPS flattened out during 2009/10, it was after a very strong growth phase that boosted EPS from 2.50 in '07 to 4.38 in '09 (75%). We've seen similar growth over the past few years from 4.41 in '10 to the current FY '12 estimates in the 7.20 area (63%). They have more than enough earnings power and cash flow generation to service their debt, even in tough times. The bar has been substantially lowered for this company, as can be seen by the drop in stock price as well as the reduced estimates. This isn't a "sexy" company. Nuts and bolts, or should I say underground and above ground mining equipment. I think its safe to say that they won't grow as fast as the past but I also think its safe to say that they are well managed and can weather the current global downturn. jmo TO