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Showing posts from June, 2019

We've Got a Winner

Income  Only three of the six stocks have a dividend: NLSN, JCDXF and IPG, and they all look quite good.  Over the past three years, each company has grown their dividend.

Let's look at the measures, the ranks and the final ranking in this category.  The measures are dividend yield, 3 year dividend per share CAGR and 1 year dividend per share growth.


Dividend
YieldD/S 3 year
CAGR1 year
D/S growthSumFinal RankJCDXF2%
43%
48%
513

4NLSN6%
65%
55%
415

5IPG4%
512%
617%
617

6
IPG has some very nice dividend results.
Value The value metrics are:
price to bookprice to salesprice to earnings (if the company has negative earnings they get a rank of zero)enterprise value to EBITDA.

P/BP/SP/EEV/EBITDASumFinal
RankTTD.21
111.1
1103
243
151RAMP.03
58.1
2173
116
2102NLSN.03
41.3
4negative
09
5133JCDXF.02
61.6
323
313
3155IPG.04
3.8
513
49
4166GRPN.06
2.7
6negative
07
6144 All of the companies in the group have what would generally be considered good P/B ratios except for TTD.  The same can be said fo…

Factor-Based Analysis on Mid Cap Advertising/Marketing Firms, Part 2

Quality  The quality factor uses five measures:
Standard deviation of earnings - the lower the better,Gross margin - the higher the better,Net margin - the higher the better,Sales/assets - the higher the better,Financial leverage - the lower the better.

SDGMNMS/AFLSumRankTTD.98
176%
618%
643%
10%
6204RAMP.12
549%
53%
376%
523%
5236NLSN.47
247%
3-11%
143%
273%
191JCDXF.27
426%
27%
557%
336%
4183IPG.32
312%
17%
462%
459%
2142GRPN.11
648%
40%
2161%
638%
3215
Based on an equal ranking of the factors, RAMP comes out on top.  This is a factor that you personally might want to weight differently.  Perhaps you don't care about volatility in the stock price or you think a certain amount of debt is desirable.  You then might make other choices for the highest quality stock.

Growth This factor looks at the year over year growth rate in revenue, EBITDA, free cash flow and gross income margin.


RevenueEBITDAFCFGMSumFinal RankTTD55%
655%
6215%
6-3%
2206RAMP30%
51%
30%
423%
6185NLSN-1%
2-10%
1-20%

Factor Based Analysis, Mid Cap Adv/Mkt - Part 1

Overview This is a factor-based analysis looking at six mid-sized companies in the marketing and advertising space.  It will look at the relative strengths and weaknesses of the group members with the goal of finding a gem.

Peer Group:Stock Name (Symbol)Last Price (May 31, 2019)Market CapTrade Desk, Inc. Class A(TTD:XNAS)$198.818.8429BLiveRamp Holdings, Inc.(RAMP:XNYS)$51.383.4986BNielsen Holdings PLC(NLSN:XNYS)$22.738.0804BJcdecaux SA(JCDXF:OOTC)$27.805.9161BInterpublic Group of Companies, Inc.(IPG:XNYS)$21.228.1952BGroupon, Inc. Class A(GRPN:XNAS)$3.532.0050B   Analysis Factors This analysis will look at six factors:
Price MomentumQualityGrowthIncomeValueProfitability. Price Momentum This factor includes a long, medium and short-term measure.  Long term is the percentage price change over two years, medium is 12 month less one month price change and short-term is the price less three month moving average.  I'm going to look the market, the sector and then each stock in the group…