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Globant Q3 Earnings: Is GLOB Expensive at 72.6x Price/EPS?

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Globant S.A. (NYSE:GLOB) is an IT services firm, based in Argentina that focuses on IT consulting and outsourcing engagements. With blue-chip clients like Disney and Google and several established Latin American companies the company has carved out a niche as an elite player in Latin America.

Globant is scheduled to report Q3 earnings results on August 15, 2019 after close of trading. The company is expected to report earnings of $0.59/share on revenue of $171.1 million. The consensus earnings per share (EPS) of $0.59/share is based on a poll of 8 analysts and represents a growth of 28.3% over the same quarter last year when the company reported earnings of $0.46/share.

The revenue forecast of $171.1 million based on a poll of 7 analysts implies a year-over-year (YoY) growth of 27.1%. Last year the company reported $134.6 million in revenue for the quarter.

Expected to report EPS growth of $0.13/share for Q3, 2019
Metric Expected Prior Year YoY Change
Revenue $171.10 $134.57 27.1%
EPS $0.59 $0.46 28.3%

Earnings Call Trends

Management has been great at managing analyst expectations historically. The company has a perfect record over the last 8 tracked quarters of exceeding earnings guidance.

What are your expectations from Globant for this earnings this quarter? Let us know in the comments!

Analyst Expected vs Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2019 $0.53 $0.53 0.4% Beat
Q1, 2019 $0.47 $0.50 7.0% Beat
Q4, 2018 $0.47 $0.50 6.4% Beat
Q3, 2018 $0.44 $0.46 4.5% Beat
Q2, 2018 $0.39 $0.40 3.9% Beat
Q1, 2018 $0.34 $0.38 11.8% Beat
Q4, 2017 $0.39 $0.39 0.8% Beat
Q3, 2017 $0.34 $0.34 0.3% Beat

One question we always consider here at the Bankers’ Tribune is how important are earnings reports to Globant’s stock price performance? It’s more important for some companies than for others. In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2019, the stock price reacted by falling by -1.9%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-08-15 $100.63 $98.74 -1.9% Decline
2019-05-09 $83.19 $85.49 2.8% Increase
2019-02-14 $68.40 $70.78 3.5% Increase
2018-11-15 $50.79 $53.29 4.9% Increase

Fundamentals And Technical Analysis

Globant is currently trading at $107.18/share, up 2.0% for the day. The company is trading at approximately 95.4% of its 52 week high of $112.33/share. The company’s stock price is up 6.5% since the last earnings report and up 7.6% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 69.83 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

The current share price implies a price-to-earnings (P/E) multiple of 72.6x and a forward P/E multiple of 45.2x.

Globant’s current share price also implies a price-to-book (P/B) multiple of 9.8x. The following table summarizes some other key fundamental ratios:

Data as of November 14, 2019
Metric Value
Last Fiscal Period FY2019.Q2
Period End Date June 30, 2019
Stock Price (Current) $107.18
P/E Ratio 72.6x
P/E Ratio (Fwd) 45.2x
PEG Ratio 1.9
Total Debt to Capital (%) 1.8%
Levered Free Cash Flow zero
Enterprise Value / EBITDA 36.7x

Company Profile: Globant S.A.

Globant S.A. is a mid-cap stock with a market capitalization of $3.851 billion and a total enterprise value of $3.860 billion. The company operates in the Information Technology sector and Software industry.

Globant S.A. operates as a technology services company worldwide. The company offers machine learning, pattern recognition, natural language understanding, future of organizations, customer insight, behavioral change, product innovation, design thinking, product management discovery and delivery, and product coaching services. It also provides process appraisal, automated, process evolution, delivery management, agile consultancy, management consulting, user experience, visual and service, industrial design, consultancy, fast prototyping, app evolution, platform integration, and hardware integration services. In addition, the company offers game engineering and experience, digital platform, virtual and augmented reality, graphics engineering, 3D and 2D art, e-Sports, data architecture, data science, distributed platform, data integration, data visualization, and blockchain services.

Further, it provides Internet of Things experience and consultancy, platform, content management system, e-learning, video content production, digital marketing, OTT, and Cloud Ops Studio services. Additionally, the company offers functional testing, load and performance testing, mobile testing, test automation, large scale Web applications, hybrid and cross-compiled development, accessibility, API management, micro, complex architecture, product security and compliance vulnerability management, application monitoring, software archaeology, IT service management, and software evolution services, as well as services over platforms.

It serves medium- to large-sized companies operating in media and entertainment, professional services, technology and telecommunications, travel and hospitality, banks, financial services and insurance, and consumer, and retail and manufacturing industries.

The company was formerly known as IT Outsourcing S.L. and changed its name to Globant S.A. in December 2012. Globant S.A. was founded in 2003 and is based in Luxembourg City, Luxembourg.

NVIDIA Q3 Earnings: Can NVDA Hit Its $1.57 EPS Target?

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NVIDIA is the inventor of the GPU, a specialized electronic circuit that creates graphics on laptops, workstations, mobile devices, notebooks, PCs, and more. More recently, the GPU has been central in powering deep learning / artificial intelligence (AI) applications like robots and self-driving cars.

NVIDIA hopes to leverage its first-mover advantage in the autonomous driving market and drive adoption of its Drive PX platform. While the company spends over $2.6 billion a year on research and development to support this effort, it faces stiff competition from other chipmakers that are also keen on capturing a share of the automotive market. There is certainly no guarantee that NVIDIA’s chips will end up dominating the market, but it is a bet the company has to make. The majority of the company’s sales are still reliant on the matured PC gaming industry. As shown in the chart below, the company’s revenues have been declining as of late as it continues to increase R&D spend.

JCP-Total-Revenues-RD-Expense

NVIDIA Corporation (NASDAQGS:NVDA) is scheduled to report Q3 earnings results on November 14, 2019 after close of trading. The company is expected to report earnings of $1.57/share on revenue of $2.901 billion. The consensus earnings per share (EPS) of $1.57/share is based on a poll of 27 analysts and represents a decline of -14.7% over the same quarter last year when the company reported earnings of $1.84/share.

The revenue forecast of $2.901 billion based on a poll of 32 analysts implies a year-over-year (YoY) decline of -8.8%. Last year the company reported $3.181 billion in revenue for the quarter.

Expected to report EPS decline of -$0.27/share for Q3, 2019
Metric Expected Prior Year YoY Change
Revenue $2,901.00 $3,181.00 -8.8%
EPS $1.57 $1.84 -14.7%

Earnings Call Trends

Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters, and missed expectations 1 quarters.

What are your expectations from NVIDIA for this earnings this quarter? Let us know in the comments!

Analyst Expected vs Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $1.14 $1.24 8.8% Beat
Q1, 2020 $0.82 $0.88 7.3% Beat
Q4, 2019 $0.75 $0.80 6.7% Beat
Q3, 2019 $1.93 $1.84 -4.7% Missed
Q2, 2019 $1.84 $1.94 5.4% Beat
Q1, 2019 $1.66 $2.05 23.5% Beat
Q4, 2018 $1.31 $1.72 31.5% Beat
Q3, 2018 $1.07 $1.33 24.3% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending July 28, 2019, the stock price reacted by increasing by 6.3%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-08-15 $150.07 $159.56 6.3% Increase
2019-05-16 $159.58 $156.53 -1.9% Decline
2019-02-14 $152.88 $157.34 2.9% Increase
2018-11-15 $197.19 $164.43 -16.6% Decline

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of – the model suggests the company is a possible earnings manipulator. A value of – implies a – chance of earnings manipulation.

Fundamentals And Technical Analysis

NVIDIA is currently trading at $208.57/share, down -0.5% for the day. The company is trading at approximately 94.0% of its 52-week high of $222/share. The company’s stock price is up 39.0% since the last earnings report and up 1.0% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 71.04 suggests the company is trading in technically overbought territory. The RSI is considered overbought when above 70 and oversold when below 30.

The current share price implies a price-to-earnings (P/E) multiple of 46.5x and a forward P/E multiple of 38.5x. NVIDIA’s current share price also implies a price-to-book (P/B) multiple of 12.4x. The following table summarizes some other key fundamental ratios:

Data as of November 13, 2019
Metric Value
Last Fiscal Period FY2020.Q2
Period End Date July 28, 2019
Stock Price (Current) $208.57
P/E Ratio 46.5x
P/E Ratio (Fwd) 38.5x
PEG Ratio 1.2
Total Debt to Capital (%) 2.0%
Levered Free Cash Flow $2.447 billion
Enterprise Value / EBITDA 46.6x

Company Profile: NVIDIA Corporation

NVIDIA Corporation is a large-cap stock with a market capitalization of $127.7 billion and a total enterprise value of $121.7 billion. The company operates in the Information Technology sector and Semiconductors & Semiconductor Equipment industry.

NVIDIA Corporation operates as a visual computing company worldwide. It operates in two segments, GPU and Tegra Processor.

The GPU segment offers processors, which include GeForce for PC gaming and mainstream PCs; GeForce NOW for cloud-based game-streaming service; Quadro for design professionals working in computer-aided design, video editing, special effects, and other creative applications; Tesla for artificial intelligence (AI) utilizing deep learning, accelerated computing, and general purpose computing; GRID, which provides power of NVIDIA graphics through the cloud and datacenters; DGX for AI scientists, researchers, and developers; and cryptocurrency-specific graphics processing units.

The Tegra Processor segment provides processors that are primarily designed to enable branded platforms – DRIVE and SHIELD; DRIVE AGX automotive computers and software stacks, which offer self-driving capabilities; Clara AGX for intelligent medical instruments; SHIELD devices and services designed for mobile-cloud in home entertainment, AI, and gaming applications; and Jetson AGX, an AI computing platform for robotics and other embedded use.

The company’s products are used in gaming, professional visualization, datacenter, and automotive markets. NVIDIA Corporation sells its products to original equipment manufacturers, original device manufacturers, system builders, add-in board manufacturers, retailers/distributors, Internet and cloud service providers, automotive manufacturers and tier-1 automotive suppliers, mapping companies, start-ups, and other ecosystem participants.

The company has an alliance with Red Hat, Inc.; a technology collaboration with Microsoft Corp.; and a collaboration with Ericsson. NVIDIA Corporation was founded in 1993 and is headquartered in Santa Clara, California.

Q3 Earnings Preview for Walmart (WMT)

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In September, Walmart launched Delivery Unlimited, for what was supposed to be Walmart management’s answer to Amazon Prime and Amazon Fresh. At the time of this writing, an annual membership to Delivery Unlimited costs $98, and monthly membership costs $12.95 for unlimited grocery delivery. Analysts expect the membership cost to change since Amazon has already responded in a big way.

Not taking the added competition lightly, Amazon axed the $14.99 Amazon Fresh fee for Amazon Prime members. The grocery business is key to Walmart’s e-commerce strategy and since Amazon Fresh is already offered in areas that cover around 35% of the U.S. population, management will have to respond quickly.

Walmart Inc. (NYSE:WMT) is scheduled to report Q3 earnings results on November 14, 2019 before markets open for trading. The company is expected to report earnings of $1.09/share on revenue of $127.8 billion. The consensus earnings per share (EPS) of $1.09/share is based on a poll of 26 analysts and represents a growth of 0.9% over the same quarter last year when the company reported earnings of $1.08/share.

The revenue forecast of $127.8 billion based on a poll of 14 analysts implies a year-over-year (YoY) growth of 3.1%. Last year the company reported $123.9 billion in revenue for the quarter.

Expected to report EPS growth of $0.01/share for Q3, 2019
Metric Expected Prior Year YoY Change
Revenue $127,767.55 $123,897.00 3.1%
EPS $1.09 $1.08 0.9%

Earnings Call Trends

Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters, and missed expectations 1 quarters. What are your expectations from Walmart for this earnings this quarter? Let us know in the comments!

Analyst Expected vs Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $1.22 $1.27 4.1% Beat
Q1, 2020 $1.02 $1.13 10.8% Beat
Q4, 2019 $1.34 $1.41 5.2% Beat
Q3, 2019 $1.01 $1.08 6.9% Beat
Q2, 2019 $1.22 $1.29 5.7% Beat
Q1, 2019 $1.13 $1.14 1.3% Beat
Q4, 2018 $1.37 $1.33 -2.9% Missed
Q3, 2018 $0.97 $1 2.9% Beat

One question we always consider here at the Bankers’ Tribune is how important are earnings reports to Walmart’s stock price performance? It’s more important for some companies than for others. In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-08-15 $106.20 $112.99 6.4% Increase
2019-05-16 $99.88 $100.86 1.0% Increase
2019-02-19 $99.99 $99.88 -0.1% Decline
2018-11-15 $101.53 $97.69 -3.8% Decline

After the last earnings report for the period ending July 31, 2019, the stock price reacted by increasing by 6.4%.

Fundamentals And Technical Analysis

Walmart is currently trading at $120.98/share, up 1.6% for the day. The company is trading at approximately 100.2% of its 52 week high of $120.71/share. The company’s stock price is up 13.9% since the last earnings report and down -0.3% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 52.12 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

The current share price implies a price-to-earnings (P/E) multiple of 25.6x and a forward P/E multiple of 24.1x.

Walmart’s current share price also implies a price-to-book (P/B) multiple of 4.8x. The following table summarizes some other key fundamental ratios:

Data as of November 13, 2019
Metric Value
Last Fiscal Period FY2020.Q2
Period End Date July 31, 2019
Stock Price (Current) $120.98
P/E Ratio 25.6x
P/E Ratio (Fwd) 24.1x
PEG Ratio 9.5
Total Debt to Capital (%) 17.9%
Levered Free Cash Flow $16.910 billion
Enterprise Value / EBITDA 12.7x

Company Profile: Walmart Inc.

Walmart Inc. is a large-cap stock with a market capitalization of $338.8 billion and a total enterprise value of $411.7 billion. The company operates in the Consumer Staples sector and Food & Staples Retailing industry.

Walmart Inc. engages in the retail and wholesale operations in various formats worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam’s Club. It operates supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, discount stores, drugstores, and convenience stores; membership-only warehouse clubs; e-commerce Websites, such as walmart.com, jet.com, shoes.com, and samsclub.com; and mobile commerce applications.

The company offers grocery products, including meat, produce, natural and organics, deli and bakery, dairy, frozen foods, alcoholic and nonalcoholic beverages, floral and dry grocery, as well as consumables, such as health and beauty aids, baby products, household chemicals, paper goods, and pet supplies; and health and wellness products. It also provides electronics, cameras and supplies, photo processing services, wireless, movies, music, video games, and books; stationery, automotive, hardware and paint, sporting goods, and outdoor living and horticulture; apparel for women, girls, men, boys, and infants, as well as shoes, jewelry, and accessories; and home furnishings, housewares and small appliances, bedding, home decor, toys, fabrics, crafts, and seasonal merchandise, as well as brand name merchandise. In addition, the company offers fuel and financial services and related products, including money orders, prepaid cards, wire and money transfers, check cashing, and bill payment.

It operates approximately 11,300 stores and various e-commerce Websites under the 58 banners in 27 countries. The company was formerly known as Wal-Mart Stores, Inc. and changed its name to Walmart Inc. in February 2018. Walmart Inc. was founded in 1945 and is based in Bentonville, Arkansas.

Eyenovia (EYEN) Q3 2019 Earnings Prep

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Eyenovia, Inc. is a nano-cap stock with a market capitalization of $45.659 million and a total enterprise value of $36.419 million. The company operates in the Healthcare sector and Pharmaceuticals industry. The clinical-stage company develops treatments for eye diseases aiming to transform the way glaucoma, dry eyes, allergic eye disease, and many other eye diseases are treated.

The company recently announced it would be advancing the development of its MicroLine program. The MicroLine program for the improvement in near vision in patients with presbyopia towards Phase III development

Eyenovia, Inc. (NASDAQCM:EYEN) is scheduled to report Q3 earnings results on November 13, 2019 after trading hours. The company is expected to report earnings of -$0.35/share. The consensus earnings per share (EPS) of -$0.35/share is based on a poll of 3 analysts. For the same quarter last year, the company reported earnings of -$0.43/share.

The company is pre-revenue.

Expected to report EPS of -$0.35/share for Q3, 2019
Metric Expected Prior Year YoY Change
Revenue $0.00 $0.00
EPS -$0.35 -$0.43 NM

Earnings Call Trends

Historically, management has exceeded analyst expectations 2 out of the last 7 tracked quarters, and missed expectations 5 quarters.

Analyst Expected vs Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2019 -$0.47 -$0.44 NM Beat
Q1, 2019 -$0.49 -$0.50 NM Missed
Q4, 2018 -$0.45 -$0.60 NM Missed
Q3, 2018 -$0.42 -$0.43 NM Missed
Q2, 2018 -$0.39 -$0.33 NM Beat
Q1, 2018 -$0.39 -$0.45 NM Missed
Q4, 2017 -$0.34 -$0.84 NM Missed

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2019, the stock price did not react much to the update.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-08-12 $3.34 $3.34 0.0% No Change
2019-05-14 $5.89 $5.11 -13.2% Decline
2019-03-27 $5.30 $5.78 9.1% Increase
2018-11-13 $3.12 $3.09 -1.0% Decline

Fundamentals And Technical Analysis

Eyenovia is currently trading at $2.81/share, up 5.1% for the day. The company is trading at approximately 40.2% of its 52 week high of $6.98/share. The company’s stock price is down -16.0% since the last earnings report and down -11.3% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 34.12 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

The current share price implies a price-to-earnings (P/E) multiple of -2.1x and a forward P/E multiple of -2.0x.

Eyenovia’s current share price also implies a price-to-book (P/B) multiple of 6.0x. The following table summarizes some other key fundamental ratios:

Data as of November 13, 2019
Metric Value
Last Fiscal Period FY2019.Q2
Period End Date June 30, 2019
Stock Price (Current) $2.81
P/E Ratio -2.1x
P/E Ratio (Fwd) -2.0x
PEG Ratio -0.5
Total Debt to Capital (%) 0.0%
Levered Free Cash Flow -$18.748 million
Enterprise Value / EBITDA -1.7x

Company Profile: Eyenovia, Inc.

Eyenovia, Inc., a clinical stage ophthalmic biopharmaceutical company, engages in developing a pipeline of microdose therapeutics in the United States. It is developing MicroProst, which is in Phase III clinical trials for the treatment of chronic angle closure glaucoma, open angle glaucoma, and ocular hypertension; MicroStat, which has completed Phase III clinical trials for the treatment of mydriasis; MicroTears for the treatment of hyperemia, pruritis, and dry eye; and MicroPine for the treatment of progressive myopia.

The company was formerly known as PGP Holdings V, Inc. and changed its name to Eyenovia, Inc. in May 2014. Eyenovia, Inc. was founded in 2014 and is based in New York, New York.

NetApp Q2 Earnings: Can NTAP Hit Its $0.94 EPS Target?

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NetApp, Inc. (NASDAQGS:NTAP) recently introduced a new program, Keystone, at the company’s annual user conference called Insight. The goal of the Keystone program is to offer a simpler way for customers to experience the benefits of the public cloud on premises.

As the company’s chief executive George Kurian described it at the conference, “NetApp Keystone enables you to simplify the business of hybrid cloud data services.” In essence, via Keystone Subscription Services, customers can click and subscribe to the performance tier and storage solution that makes sense for them.

NetApp is scheduled to report Q2 earnings results on November 13, 2019. The company is expected to report earnings of $0.94/share on revenue of $1.386 billion. The consensus earnings per share (EPS) of $0.94/share is based on a poll of 27 analysts and represents a decline of -11.3% over the same quarter last year when the company reported earnings of $1.06/share.

The revenue forecast of $1.386 billion based on a poll of 24 analysts implies a year-over-year (YoY) decline of -8.6%. Last year the company reported $1.517 billion in revenue for the quarter.

Expected to report EPS decline of -$0.12/share for Q2, 2019
Metric Expected Prior Year YoY Change
Revenue $1,386.00 $1,517.00 -8.6%
EPS $0.94 $1.06 -11.3%

Earnings Call Trends

Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters, and missed expectations 1 quarter.

What are your expectations from NetApp for this earnings this quarter? Let us know in the comments!

Analyst Expected vs Reported EPS
Quarter Expected Reported Surprise Result
Q1, 2020 $0.58 $0.65 12.1% Beat
Q4, 2019 $1.26 $1.22 -3.2% Missed
Q3, 2019 $1.15 $1.20 4.3% Beat
Q2, 2019 $0.99 $1.06 7.1% Beat
Q1, 2019 $0.80 $1.04 30.0% Beat
Q4, 2018 $1.01 $1.05 4.4% Beat
Q3, 2018 $0.90 $0.99 10.0% Beat
Q2, 2018 $0.69 $0.81 17.7% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-08-14 $46.99 $46.47 -1.1% Decline
2019-05-22 $69.99 $61.66 -11.9% Decline
2019-02-13 $67.14 $63.66 -5.2% Decline
2018-11-14 $78.89 $68.88 -12.7% Decline

After the last earnings report for the period ending July 26, 2019, the stock price reacted by falling by -1.1%.

Fundamentals And Technical Analysis

NetApp is currently trading at $60.48/share, up 0.6% for the day. The company is trading at approximately 72.0% of its 52 week high of $83.95/share. The company’s stock price is up 28.7% since the last earnings report and up 3.9% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 67.13 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

The current share price implies a price-to-earnings (P/E) multiple of 14.5x and a forward P/E multiple of 14.6x.

NetApp’s current share price also implies a price-to-book (P/B) multiple of 16.6x. The following table summarizes some other key fundamental ratios:

Data as of November 13, 2019
Metric Value
Last Fiscal Period FY2020.Q1
Period End Date July 26, 2019
Stock Price (Current) $60.48
P/E Ratio 14.5x
P/E Ratio (Fwd) 14.6x
PEG Ratio 2.3
Total Debt to Capital (%) 10.8%
Levered Free Cash Flow $1.184 billion
Enterprise Value / EBITDA 10.5x

Company Profile: NetApp, Inc.

NetApp, Inc. provides software, systems, and services to manage and share data on-premises, and private and public clouds worldwide. The company offers cloud data services, including NetApp Cloud Volumes Service for AWS, NetApp Cloud Volumes ONTAP, NetApp Cloud Sync, NetApp Cloud Secure, NetApp Cloud Tiering, NetApp SaaS Backup, NetApp Kubernetes Service, and NetApp Cloud Insights. It also provides cloud infrastructure solutions, such as FlexPod, a portfolio of pre-validated designs and integration; NetApp HCI for public cloud consumption experience; and NetApp StorageGRID, a software-defined object-based storage solution.

The company also offers storage systems and software, including all-flash arrays that support data management; hybrid arrays to deploy the speed of flash storage; NetApp ONTAP storage operating system; NetApp ONTAP Select, which offers robust enterprise storage services; NetApp MAX Data; NetApp FlexArray storage virtualization software; NetApp OnCommand API Services; NetApp Active IQ software; NetApp data availability services; NetApp SnapCenter backup management software; NetApp SnapMirror data replication software; NetApp MetroCluster business continuity softwar; NetApp SnapLock data compliance software; NetApp SANtricity storage operating system; and NetApp Element operating system.

Further, it provides software maintenance, hardware maintenance, and other services, including professional services, global support solutions, and customer education and training. It serves the energy, financial services, government, high technology, Internet, life sciences, healthcare services, manufacturing, media, entertainment, animation, video postproduction, and telecommunications through a direct sales force and an ecosystem of partners.

NetApp, Inc. was founded in 1992 and is headquartered in Sunnyvale, California.

Sundial Growers Q3 Earnings: Is SNDL Still Expensive at 25x Price/Book?

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Sundial Growers Inc. (NASDAQGS:SNDL) is a cannabis company with facilities in Canada and the United Kingdom. Sundial is a small-cap stock with a market capitalization of $358.5 million and a total enterprise value of $499.2 million.

Sundial completed its initial public offering (IPO) recently to commence trading on Nasdaq. The IPO issued 11 million common shares at USD $13.00/share to raise gross proceeds of USD 143,000,000. Management intends to use the proceeds from the IPO to invest in processing facilities, future acquisitions, and general corporate purposes.

As MarketWatch reported, it hasn’t been smooth sailing for the company since IPO. Another, Canadian cannabis company Zenabis Global (ZENA) disclosed that it had returned around $2 million of product from a “third party” that it did not mention by name. Zenabis returned the purchased cannabis because of poor quality, and people familiar with the matter identified the party as Sundial.

Sundial is scheduled to report Q3 earnings results on August 14, 2019 after trading hours. The company is expected to report earnings of -$0.09/share on revenue of $19.271 million. The consensus earnings per share (EPS) of -$0.09/share is based on a poll of 2 analysts.

After the last earnings report for the period ending June 30, 2019, the stock price reacted by falling by -12.2%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-08-28 $8.95 $7.86 -12.2% Decline

Fundamentals And Technical Analysis

Sundial Growers is currently trading at $3.56/share, down -6.6% ahead of earnings. The company is trading at approximately 27% of its 52 week high of $13.22/share. The company’s stock price is down -60.2% since the last earnings report and up 18.7% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 51.94 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

The current share price implies a price-to-earnings (P/E) multiple of -5.6x and a forward P/E multiple of -11.5x.

Sundial Growers’s current share price also implies a price-to-book (P/B) multiple of 25.4x. The following table summarizes some other key fundamental ratios:

Data as of November 13, 2019
Metric Value
Last Fiscal Period FY2019.Q2
Period End Date June 30, 2019
Stock Price (Current) $3.56
P/E Ratio -5.6x
P/E Ratio (Fwd) -11.5x
PEG Ratio 0.1
Total Debt to Capital (%) 31.3%
Levered Free Cash Flow -$181.7 million
Enterprise Value / EBITDA -16.3x

Company Profile: Sundial Growers Inc.

Sundial Growers Inc. engages in the production, distribution, and sale of cannabis for medical and adult recreational access in Canada. The company also focuses on supplying herbs and ornamental flowers, including basil, coriander, mint, dill, tulips, roses, and poinsettias in the United Kingdom. It serves the adult-use cannabis industry.

The company offers its products under the Sundial, Top Leaf, and BC Weed Co. brands. Sundial Growers Inc. has a development and licensing agreement with Crescita Therapeutics Inc. for the development of cannabis and hemp topical.

The company was incorporated in 2006 and is headquartered in Calgary, Canada.

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