Brown-Forman (BF.B), the manufacturer and seller of alcoholic beverages locally and globally, has one of the most intoxicating growth stories. While the S&P 500 index is struggling to post gains, the liquor company’s stock is already up 20.7% year-to-date, driven by strong fiscal third-quarter earnings and improved full-year growth outlook. During the quarter, diluted earnings per share increased 13% to $0.82, surpassing both analysts’ estimates and year-ago EPS of $0.73. Considering the fantastic business, one can find more than few reasons to invest in this stock, but below I highlight three compelling reasons that reinforce the view. Both risk-on and risk-off play The spirits industry has been a noteworthy alternative investment of late. Not only has it consistently outperformed stock market, but also has materially emulated the returns from safe-haven investments such as gold and treasury bonds during the financial crisis. While the value of gold rose 138.3% in the five-year period from 2007 to 2012, Brown-Forman posted a reasonable 75.05% gain in the same period. In comparison, the S&P 500 (^SPX) index fell 11.2%, while the iShares Barclays 20+ Years Treasury Bond ETF (TLT) gained only 36.14% in the 5-year period. Along with industry peers like Diageo (DEO), the alcoholic spirits industry fares considerable better than the broader markets during recessionary and other downturn periods. However, the outperformance is not limited to risk-off periods. Unlike gold – or any other safe-haven investment – the spirit stocks thrive in risk-on periods as well. As illustrated in the chart above, it is for this reason that Brown-Forman managed a 489% return since the turn of the century, compared with lesser returns from gold, ... ... middle of paper ... ...fort, the third-largest selling liqueur, Canadian Mist, the fourth-largest selling Canadian whiskey, and el Jimador, the fourth-largest selling tequila. While Brown-Forman keeps on building innovative new brands that thrive and endure for generations, it will continue to capitalizes on its strong, 25-plus brands portfolio. Final thoughts Consistent growth, new products, growing markets, strong financials, long history of returning cash to shareholders, improved growth outlook, highly regulated industry, and the list of positives just goes on and on for Brown-Forman. However, the three reasons that cannot be overlooked are risk-on/risk-off candidacy, surviving industry-related issues, and brand presence. The combination of these factors is what makes Brown-Forman, one of the oldest and best-known players in its market, a winner, even in tough market conditions.
Grand Metropolitan PLC is the world’s largest wine and spirits seller. It mainly operated in London, USA. In 1991, it beats market expectation with a 4.8% increase in pretax profits, and the company Chairman stated that company’s goal “to constantly improve on”. Despite the great performance in the world recession in 1991, the price of GrandMet shares was 10% below the average price/earnings ratio of the companies in the Standard & Poor’s 500 index. And more important, rumors had that GrandMet, valued at more than $14 billion in the stock market, maybe a takeover target. The management dilemma is to understand why the company’s stock is traded below of what considered being the right price and whether the company is truly being undervalued by the market or there are consistent issues with negative NPV projects and lines of businesses.
The stock price is currently 103.31, down from a recent high of 121.50. The P/E ratio is declining at 28 and beta at .67, which is expected to grow closer to 1.0. A recent earnings surprise last December yielded a 15% difference from the lower expectations and the latest earnings reports late last month also surprised investors. Estimates for the 2000 fiscal year are being raised by a large majority of analyst who believe that earnings per share will increase and the stock price will reach close to 150.
Nevertheless, it must “defend” its current market share if not increase it, by maintaining premium quality and develop innovative products. The marketing mix strategies will effectively achieve targeted revenue and profitability in the near future.
In the fiscal-second quarter that ended Feb. 14, the Memphis, Tennessee-based auto parts retailer reported net sales of $2 billion, an increase of 7.3% from the same period a year ago. Accordingly, domestic same-store sales increase 4.3% for the quarter. Net income for the quarter increased by as much as 9.4% - to $192.8 million – over the same period last year, while diluted earnings per share grew 18.8% to $5.63 per share, marking the thirtieth consecutive quarter of double digit earnings per share growth. These are remarkable figures by any means and reflect the company’s ability to sustain growth.
After conducting a basic 10 year financial analysis of the company, it has become evident that even with a highly competitive market structure they are able to improve on their performance. Ranging from 2004 to 2013 financial information, the company has shown a significant increase in their sales revenue roughly $3865 million sales in 2004 to almost four time that valuing $12970 million in 2013, which was an “increase of 10.4% over the 53 week prior year” The company’s growth strategy has been to diversify its product market and make them...
The company had to be the second largest retailer shop in the US; it has many advantages that come along. The customers well acknowledge the company and its brand have been well established.
This analysis will identify the current value of the company at a stand-alone value and explain why Nestle Food would want to buy this company and the synergies involved for their reasoning. We will also discuss who will benefit if Reynolds Metals were to sell to Nestle or were to create an IPO. Finally we will provide a recommendation for Reynolds Metals that will be most beneficial to the company financial needs.
Boston Beer uses a quality strategic planning system in order to achieve their corporate objectives. They have a good system in place that they use when considering the future decisions of the company. They utilize this system each time that they decide if they are going to introduce a new product into the market. This is one of the reasons that their hard cider was able to become the number one cider in the United States in only eight months.
...fer York Stock. Vol. 3: Primary Sources. Detroit: UXL, 2007. 191-200. Gale Virtual Reference Library. Web. 26 Mar. 2014.
The purpose of this report is to analyze Target Corporation’s financial statements, determine the future growth potential of the company, and make a recommendation for or against the acquisition of the company.
Along the years, the company has been coming up with new and better products that has defferintiated from the rest based on its own methods and recipes.
Since going public in 2000, Krispy Kreme Doughnuts has posted strong growth in same-store sales each quarter, with a consistency that would make most competitors envious. According to the Krispy Kreme’s most recent quarter, which ended August 3, 2003, it posted an 11.3 percents rise in system wide same-store sales, including 15.6 percents growth at company operated units (Peters, 2003). From the financial report of second quarter in 2003, it could foretell there would be more earnings growth in the future as long as Krispy Kreme finds more new markets in which to launch doughnut shops. Its average weekly sales are in large determined by newly opened stores. This also demonstrates that the doughnuts specialist’s soaring results and rise to the top echelon of industry performers can be attributed to successful expansion.
The yellow metal is considered one of the most valuable assets in the world and reckoned as best store of value against inflation, low interest rates, and any uncertainty. Interestingly, unlike other conventional investments, the metal neither pays dividends nor any interest to its buyers. Nonetheless, the price of gold is rising at such a torrid pace, investors usually not at loss when investing in gold business these days. Unlike old times when only queens and princess had access to the precious metal, gold is now being sold and bought in open markets in small and large quantities.
withstanding a large recession, and commanding high market share. In the last five years, the company’s
Johnson & Johnson (J&J) has been important producer of consumer products for 125 years. The last 10 years have seen its stock create a 4.0 % return on investment, whereas the number generated for the S&P 500 is 1.4 % (Johnson & Johnson, 2012). J&J knows that keeping a pulse on the global consumer market is key to achieving profitable results in the marketplace. Despite recent struggles with several high pr...