Earnings Distortion Scorecard: Week of 4/27/20-5/1/20
For the week of 4/27/20-5/1/20, we focus on the Earnings Distortion Scores for 173 companies.
Matt Shuler, Investment Analyst II
AAPL
Matt Shuler, Investment Analyst II
Insights Into Apple’s Earnings Distortion Score – Yahoo Finance
We joined Yahoo Finance’s The Ticker on Wednesday, February 26 to provide insights into Apple’s Earnings Distortion Score and outlook amidst coronavirus concerns.
Kyle Guske II, Senior Investment Analyst, MBA
Getting Core Earnings Right
Though most investors take for granted that corporate managers fudge their earnings, there’s never been any empirical data and evidence to prove it – until now.
Kyle Guske II, Senior Investment Analyst, MBA
Core Earnings & Earnings Distortion: Explanation & Examples
Our “novel dataset” of footnotes disclosures enables analysts to strip out the unusual items that distort core earnings measures from traditional sources.
Kyle Guske II, Senior Investment Analyst, MBA
Big Tech Leads Decline in Core Earnings
Reported earnings have not been this overstated, relative to core earnings, for the Tech sector since the Tech bubble.
Kyle Guske II, Senior Investment Analyst, MBA
Podcast: Why The Technology Sector is in the Danger Zone
CEO David Trainer sat down with Chuck Jaffe of Money Life to talk about our Danger Zone pick this week: Big Tech Leads Decline in Core Earnings.
Kyle Guske II, Senior Investment Analyst, MBA
Net Operating Profit After-Tax (NOPAT) & NOPAT Margin
When we calculate NOPAT, we make numerous adjustments to close accounting loopholes and ensure apples-to-apples comparability across thousands of companies.
Kyle Guske II, Senior Investment Analyst, MBA
Even Reed Hastings Admits Netflix Is in Trouble
Without positive sentiment to prop it up, NFLX remains highly overvalued and a serious risk to shareholders.
Sam McBride
Free Cash Flow and FCF Yield
As with all things in life, building a solid investment strategy around Free Cash Flow (FCF) is not as simple as it may seem. Here are 3 rules to follow.
Sam McBride
Big Tech Still Dominates Economic Earnings Growth
GAAP earnings don’t just mislead investors about the amount of growth in 2018, they also present a misleading picture of the breadth of earnings growth.
Sam McBride
Netflix’s Momentum Has Run Out
The noise-trader momentum driving the stock is evaporating, the company’s mounting (and increasingly expensive) debt poses a significant near term liquidity risk, and the bull case is full of holes.
Sam McBride
Rising from the Ashes to Lead a New Retail Paradigm
The market has recognized some of the turnaround (shares are up 40% in the past year), but investors are missing the critical role the firm could play in the next chapter of retail as well as the balance sheet story.
Kyle Guske II, Senior Investment Analyst, MBA
Diamonds in the Rough of the Consumer Cyclicals Sector
By leveraging our Robo-Analyst technology to parse and analyze company filings, including the footnotes and MD&A, we have identified companies with multiple years of after-tax profit growth and above average returns on invested capital.
Kyle Guske II, Senior Investment Analyst, MBA
How Much Should Investors Pay for Spotify?
To help investors sort through the confusion, we present three different proposed valuations for Spotify based on three different scenarios of growth and profitability.
Sam McBride
Don’t Buy What “Smart Money” Sells
Is the market hungry enough to justify the expected $7 billion valuation? Or, is this IPO how insiders sell stock and raise capital after the “smart money” (i.e. private equity, hedge funds, etc.) has dried up?
Kyle Guske II, Senior Investment Analyst, MBA
Tax Reform Winners: Companies with Deferred Tax Liabilities
Most public companies should benefit from the new tax law and some of the biggest winners will be companies with large deferred tax liabilities (DTLs).
Sam McBride
Netflix’s Price Increase Signals Original Content Isn’t Enough
We believe the price increase signifies that Netflix’s competitive advantage has been wiped away. In order to justify its massive original content budget, it must raise prices if it is to ever meet the expectations implied by its stock price.
Kyle Guske II, Senior Investment Analyst, MBA
See Us On CNBC Discussing Apple @ 3ET Today
Tune into CNBC on Wednesday, August 2 at 3pm EST. New Constructs CEO, David Trainer, will discuss Apple’s business and its current valuation.
Kyle Guske II, Senior Investment Analyst, MBA
3-Year Average Return on Invested Capital: Explanation & Examples
3-year average return on invested capital (seen in Figure 1) provides additional insights into a firm’s track record of prudent capital management.
Kyle Guske II, Senior Investment Analyst, MBA
GAAP-Based Return on Invested Capital: Explanation & Examples
GAAP-based ROIC is based on a simplified after-tax profit (NOPAT) and invested capital that can easily be calculated using only the income statement and balance sheet.
Kyle Guske II, Senior Investment Analyst, MBA