Skip to main content

Looking for Value Part 2b) Which Industry Within the Sector?

The next part of this analysis will determine which of the three industries look the most promising from a value perspective.  I'll then do a more thorough analysis on it.

Methodology

Within each industry I'm going to compare the earnings per share growth to the change in price and then take an average.  I'm looking for the industry that has had the highest EPS growth but the smallest share price growth.

Telecom Majors

Security Earnings Per Share - Fiscal Period (Y) Earnings Per Share - Fiscal Period (Y-3) Price (Current) Price (M-36) 3 YEAR CHANGE IN EPS 3 YEAR CHANGE IN PRICE
VZ 7.36 2.42 54.79 46.01 2.0413 0.1908
T 4.7652 1.19 33.03 33.2 3.0044 -0.0051
SHEN 1.33 0.695 37.45 19.345 0.9137 0.9359
CNSL 1.07 0.3458 12.07 19.51 2.0943 -0.3813
BCE 2.4037 2.6982 41.54 40.44 -0.1091 0.0272
ALSK -0.12 -0.06 1.63 2.22 1 -0.2658
ATNI 1.9425 2.9382 73.53 71.45 -0.3389 0.0291
CBB 0.58 1.55 13 3.43 -0.6258 2.7901
Average 0.9974875 0.4151125

Telecom Specialty

I had to remove a bunch of securities from the portfolio - most because they're now private (STRP, SHOR, LMOS, IQNT, HCOM, LVLT, GNCM.A/B, WSTC), one because it was merged into another company (FRP) and one because it trades too infrequently (SGRB). 
After much internal debate I also removed TEUM as it didn't have enough history (in Q3 2016 it was spun out of Elephant Talk Communications, ETAK).

Security Earnings Per Share - Fiscal Period (Y) Earnings Per Share - Fiscal Period (Y-3) Price (Current) Price (M-36) 3 YEAR CHANGE IN EPS 3 YEAR CHANGE IN PRICE
WIN -62.6 -13.5 5.18 7.19 3.637 -0.2796
ZAYO 0.35 -0.7502 37.96 27.97 -1.4665 0.3572
VG -0.1506 0.09 14.48 5.55 -2.6733 1.609
RNET -0.9 0.87 14.3 28.83 -2.0345 -0.504
NULM 1.93 0.54 19.3 7.5 2.5741 1.5733
OOMA -0.71 -0.3621 16.3 8.82 0.9608 0.8481
LICT 1063.801 444.34 14300 5250 1.3941 1.7238
LBRDA 11.1 -1.52 78.36 54.47 -8.3026 0.4386
IDT 0.35 0.82 5.43 15.62 -0.5732 -0.6524
GTT -1.71 -0.85 38.35 21.99 1.0118 0.744
FSNN -1.08 -0.9071 3.84 2.12 0.1906 0.8113
FTR -25.99 1.95 5.73 5.07 -14.3282 0.1302
ENT -4.07 -0.78 2.68 11.77 4.2179 -0.7723
ETAK -0.7628 -3.75 2.57 0.3 -0.7966 7.5667
CTL 2.21 1.36 23.86 27.04 0.625 -0.1176
CCOI 0.13 0.02 52.65 27.77 5.5 0.8959
Average -0.628975 0.8982625

Telecom Wireless

Security Earnings Per Share - Fiscal Period (Y) Earnings Per Share - Fiscal Period (Y-3) Price (Current) Price (M-36) 3 YEAR CHANGE IN EPS 3 YEAR CHANGE IN PRICE
USM 0.14 -0.51 44.55 36.92 -1.2745 0.2067
TELDF -0.1466 -0.5704 4.39 5.4079 -0.743 -0.18822
TDS 1.37 -1.26 30.67 28.44 -2.0873 0.0784
TMUS 5.2 0.3 65.84 41.86 16.3333 0.57286
SBAC 0.86 -0.19 157.9 118.2 -5.5263 0.3359
S 1.81 -0.85 6.17 5.06 -3.1294 0.2194
PDVW -1.7 -1.46 30.2 31.97 0.1644 -0.0554
ORBC -0.84 -0.08 10.83 6.09 9.5 0.7783
NIHD -3.0102 -11.535 5.45 8.59 -0.739 -0.3655
ICTG 6.64 1.64 63.25 21 3.0488 2.0119
IMASY 0.4043 0.7569 7 15 -0.4658 -0.5333
I -1.5 1.99 22.96 9.67 -1.7538 1.3744
IRDM 1.82 0.69 20.7 7.45 1.6377 1.7785
GSAT -0.08 -0.5 0.5343 1.76 -0.84 -0.6964
FETLF 1.6419 1.7392 39.0095 2.15 -0.0559 17.144
CEL 0.3086 0.9812 6.02 5.8443 -0.6855 0.0301
AMX 0.4672 1.0034 16.77 17.9403 -0.5344 -0.0652
SPOK -0.76 0.94 15.55 16.3911 -1.8085 -0.0513
GOGO -2.17 -0.99 4.55 15.89 1.1919 -0.7137
Average 0.643826316 1.150601962


Telecom Majors looks like the best industry to start a more in depth analysis.

Comments

Post a Comment

Popular posts from this blog

11 Reasons Why INVRS is Better Than Excel Alone

If you work with your own investment models you likely use excel to build them, but excel isn’t ideal for many reasons and it costs you in other ways.   First, you need good data and it isn’t just lying around in an easy to import format.   You’re either keying it in yourself or paying money for excel downloads.   When you need data from numerous sources – price information, data from different statements and across multiple years - you must merge it from multiple sheets.   It's a n inefficient process which can lead to data corruption. After all this data is collected and merged, models built and tested, the net result is one statistic for one company.   A stand-alone number without context has limited use.   To be meaningful, you need to compare it to similar companies.       This is just a sample of the challenges.  You need software that overcomes these problems and is designed for investment model creation. Surprise!  This software exists,
Post a Comment
Read more

NextEra - Good Dividend in the Renewable Energy Sector

NextEra had good results relative to a group of peers in a factor-based analysis. NextEra has an appealing profitability and income profile. Its price momentum looks decent, with a caveat. Its relatively small size (a small mid-cap) coupled with its industry (renewable energy) further weight the odds that this company could be a strong performer in the future. If you want in on renewable energy, we recommend NextEra. The Analysis Overview I created a portfolio of stocks in the alternative energy sector, looking specifically for companies with a market cap over $1B but less than $4B.  This is a sweet spot that offers strong potential for growth but is also substantial enough not to be too speculative. It's my believe that alternative energy is on the ascendance, where as fossil fuels will inevitably decline (NextEra isn't a pure play in this regard however, natural gas assets are part of its portfolio).  If you share this belief and you want exposure to this ma
Post a Comment
Read more

GlaxoSmithKline Scores High in Quality

I created a portfolio of the top pharmaceutical companies trading in the US and ran a quality of earnings analysis on them.  With the highest possible score being nine, GSK scored the best with seven. Here are the results: Quality of Earnings - Major Pharmaceuticals Here's the balance of the companies in the portfolio.  We can see that AZN was the worst at two. Quality of Earnings - Major Pharmaceuticals 2 Just for laughs, lets see how GSK and AZN have performed from a price perspective. Interestingly, AZN has been outperforming GSK. It'll be interesting to say if this trend will continue or if it will, more correctly I believe, reverse.
Post a Comment
Read more