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Huntington Ingalls Industries Dividend Analysis

This is a Dividend Analysis on HII Pre-Amble As you may or may not be aware, people can request an analysis on the stock of their choice on INVRS.  Sometimes something very interesting comes of of it and I want to present my finding on the blog.  However, I need to be respectful of the person who requested the stock and give them "alone" time with the information. 

In this case, during the period of silence, the company released quarterly earnings which caused the price of the shares to pop approximately $17.  I re-ran all of the analysis components to reflect the new numbers, and the company still has some favourable elements, but the weak points have to be looked out more carefully, especially since the margin of safety is not what it was earlier in the week.
Company Background Huntington Ingalls Industries, Inc. engages in the shipbuilding business. It operates through the following business segments: Ingalls, Newport News, and Technical Solutions. The Ingalls segment de…
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Domtar Corp. engages in the design, manufacturing, marketing, and distribution of fiber-based products, which includes communication papers, specialty and packaging papers and absorbent hygiene products. It operates through the following segments: Pulp and Paper, and Personal Care. The Pulp and Paper segment is involved in the design, manufacturing, marketing, and distribution of communication, specialty and packaging papers, as well as softwood, fluff, and hardwood market pulp. The Personal Care segment consists of the design, manufacturing, marketing, and distribution of absorbent hygiene products. The company was founded on March 7, 2007 and is headquartered in Fort Mill, SC.

Founded: 2007

Number of Employees: 10,000
Analysis Framework We looked for industrial stocks with a dividend yield between 3.69% and 9.6% and found 70.  Out of that 70 we removed any that had not increased their dividend each year for the past five years.  That left a portfolio of 21 stocks.  We then ran thre…

Sunny CSIQ

Canadian Solar, Inc. engages in the manufacture of solar photovoltaic modules and a provider of solar energy solutions. It operates through the Module and System Solutions (MSS), and Energy segments. The MSS segment involves in the design, development, manufacture, and sales of solar power products and solar system kits, and operation and maintenance services. The Energy segment comprises primarily of the development and sale of solar projects, operating solar power projects and the sale of electricity. The company was founded by Shawn Qu in October 2001 and is headquartered in Guelph, Canada.

Founded: 2001

Number of Employees: 12,442

Headquarters: Guelph CA
Analysis Structure This analysis will look at three factors for CSIQ and it's peers:
Quality of Earnings,Valuation, and Growth. We'll look at both relative and absolute numbers.

We're running this model against a portfolio of eight stocks including CSIQ.  The other companies selected were chosen because they were in a…

CNQ: Too Bad About the Price

VALUATION MODEL FOR CNQ
The Model We'll start by looking at CNQ's value relative to the group and then we'll look at it's dividend yield relative to its five year average. 
Group Valuation Metrics We're looking at four valuation metrics  and then ranking them from best to worst.  The ranks are summed and a final rank is calculated.
SecurityPrice to Book
RankPrice to Sales
RankPE Ratio
RankEV/EBITDA
RankSumFinal
RankCNQ0.0132
31.9171
517.86
35.92
4152CVE.009
4.5659
10na (negative)
123.14
2174HSE .0054
9.6423
97.12
84.68
63210ECA.0076
61.06
75.09
103.93
8319

ALA.0089
5.739
8na (negative)
1na (negative)
1152TOU.0052
102.7331
110.099
66.50
3205VET.0142
22.6826
212.5324
45.87
5131PXT.0196
12.4163
36.8331
92.45
10236VII.0063
81.2609
67.57
73.24
9308ARX.007     
72.0627 
4   11..87 
54.50   
7 236   CNQ doesn't look like good value relative to its peers.
Dividend Yield Relative to 5 Year Average A rule of thumb for this metric is to only purchase a stock when it'…

CNQ - Great Dividend Profile

INCOME ANALYSIS FOR CNQ
The Model There are a multitude of ways to look at dividends.  This report is going to combine two elements: the sum of the current yield and the five year average growth rate (total return) and the dividend coverage.
The Total Return The graph below shows the sum of the current yield and the five year average growth rate.

CNQ is really high, almost 24%.  This is a combination of a 3.95% dividend yield and a 5 year growth rate of 19.95%.  Note, the 3 year growth rate was 13.97%.
Dividend Coverage We want to see that the TTM dividend is less than 75% of the company's free cash flow with this metric.

CNQ is 37%. 
Summary CNQ has an impressive total return and good coverage.
Disclaimer The point of this report is to demonstrate what INVRS can do.  This is not a comprehensive analysis and we cannot be held responsible for any investment decisions you make. 
We may publish this report after three business days.
Thank you for your interest in INVRS.  Discover and…

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 an 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, it's INVRS.  You can get a free analysis report on …