This analysis attributes an Overall Score to a company by analyzing several aspects that I consider to be among the most important.
In summary, a company to have an overall score close to 100% must have the following characteristics:
- Report high growth rates in the last 3 years (and in the last quarter) in terms of Revenue, Gross Profit, Operating Income and Net Income. Furthermore, it must operate with high and improving margins in recent years.
- Analysts expect Earnings Per Share (EPS) and revenues to grow in the short term (in the next quarter) and in the medium to long term (in the next 5 years). Moreover, they expect the company to be undervalued at current prices and in the last quarter their EPS expectations must have been beaten with a consequent rise in share prices.
- The stock price of the company must have outperformed the S&P 500 index and in the last 3 months the Hedge Funds and Insiders bought shares in the company.
The overall score ranges from -100% (if the characteristics listed above are all very negative) to +100% and it is unlikely that there will be a company with a +100% score because the requirements for achieving this score are very high, however a score higher than +40% can be considered good.
This analysis alone is not enough to decide whether or not to invest in a company because it does not provide indications on the timing of entry, but it is a good starting point.
Tiffany & Co (TIF)
- Overall Score (-100%;+100%): +9,3%
- Last quarterly report:
- revenue -2,5%
- net profit -5,8%
- net margin -3,3%
- Low growth in the last 3 years, revenues + 6.8%
- Clear underperformance compared to the S&P 500 index
- Over the past 3 months, Hedge Funds have increased their positions on TIF but Insiders sold shares worth $340k
- Analyst expectations:
- they consider the company undervalued by 12% and expect modest growth in the coming years
Tiffany & Co. is an American luxury jewelry and specialty retailer headquartered in New York City. It sells jewelry, sterling silver, china, crystal, stationery, fragrances, water bottles, watches and personal accessories, as well as some leather goods.
The overall score of TIF is 9% .
In the last 6 months, TIF has underperformed the S&P500 index by -18,5% and analysts believe the company is undervalued by 12,6% .
In the last quarter, the company reported revenues of 1048,5 million, down by -2,5% compared to the same quarter 12 months earlier. Revenue TTM (Trailing-12-Months) are equal to 4384,6 million, up by 6,8% in the last 3 years.
TIF reported an operating income of 184,3 million in the last quarter, worsening by -3,6% compared to the same quarter 12 months earlier, also reporting a reduction by -1,1% in the operating margin. Considering the sum of the last four quarters (TTM), TIF reports an operating income of 740,0 Million a decrease of -2,6% compared to three years ago and a reduction of -8,9% in the operating margin.
TIF reported a net income of 136,3 million in the last quarter, worsening by -5,8% compared to the same quarter 12 months earlier, also reporting a reduction by -3,3% in the net margin. The TTM net income is 548,2 million , a growth of 18,2% compared to three years ago and the net margin has improved by 10,6% .
In the next quarter, analysts expect growth in EPS (Earnings Per Share) of 11,7% and a growth in revenue of 2,8% . Furthermore, they expect an annual growth of TIF EPS by 8,5% for the next 5 years.
In the last quarter, TIF reported better EPS than analysts’ expectations and the stock price reacted by increasing by 3,0% .
Finally, in the last 3 months the Hedge Funds have increased their positions by 406.4k shares. The Insiders have sold shares worth $339.5k .
Sources & additional info
*The comparison with the S&P 500 index is visible inside the graph.
*Data updated to the last quarterly report available
*Data in Millions of Dollars
*Data from zacks.com, tipranks.com, reuters.com, finance.yahoo.com
*Company information from wikipedia.com
This analysis gives you a general idea of whether a company is good or not, but you may also be interested in finding potential entry points, so I am waiting for you here to know about the best chart patterns of today.
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DISCLAIMER: The information in this blog post represents my own analysis/opinions and does not contain a recommendation for any particular security or investment.