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NOPAT MARGIN

June 7, 20210Comments

All Cap Index & Sectors: ROIC Vs. WACC Through 1Q21

This report presents the drivers of economic earnings (ROIC, NOPAT margin, invested capital turns, and WACC) for our All Cap Index and each of its sectors.
by Alex Sword
Most Likely to Beat Earnings
May 25, 20210Comments

S&P 500 & Sectors: ROIC vs. WACC Through 1Q21

The Technology, Basic Materials, Consumer Non-cyclicals, and Healthcare sectors saw an improvement in ROIC year-over-year (YoY) based on 1Q21 financial data.
by Kyle Guske II, Senior Investment Analyst, MBA
PEBV Ratio Analysis
April 15, 20212Comments

All Cap Index & Sectors: ROIC Vs. WACC Through 4Q20

This report presents the drivers of economic earnings (ROIC, NOPAT margin, invested capital turns, and WACC) for our All Cap Index and each of its sectors.
by Kyle Guske II, Senior Investment Analyst, MBA
Most Likely to Beat Earnings
April 15, 20210Comments

S&P 500 & Sectors: ROIC vs. WACC Through 4Q20

This report analyzes the drivers of economic earnings (ROIC, NOPAT margin, invested capital turns, and WACC) for the S&P 500 and each of its sectors.
by Kyle Guske II, Senior Investment Analyst, MBA
PEBV Ratio Analysis
December 14, 20200Comments

All Cap Analysis: Only One Sector Has a Rising ROIC in 2020

This report analyzes the drivers of economic earnings [ROIC, NOPAT margin, invested capital turns, and WACC] for the NC 2000 and each sector since 1998.
by Matt Shuler, Investment Analyst II
Core vs. GAAP Earnings
December 2, 20200Comments

Only Two S&P 500 Sectors Have a Rising ROIC Through 3Q20

Only the Consumer Non-cyclicals sector and the Technology sector have seen an improvement in return on invested capital (ROIC) since the end of 2019.
by Matt Shuler, Investment Analyst II
ICYMI
September 18, 20200Comments

ICYMI: ROIC Trends for the S&P 500 and 11 Sectors, Fiduciary Red Flag: Priced for Global Domination, TD Ameritrade Interview & A COVID Write-Down Case Study

Here's what happened at New Constructs this past week.
by Kyle Guske II, Senior Investment Analyst, MBA
Core vs. GAAP Earnings
September 15, 20200Comments

No S&P 500 Sector Has a Rising ROIC Through First Half 2020

This report analyzes the drivers of economic earnings – ROIC, NOPAT margin, invested capital turns and weighted average cost of capital – for the S&P 500 and each of its sectors.
by Kyle Guske II, Senior Investment Analyst, MBA
December 2, 20190Comments

Only One Sector Has A Rising ROIC

The core fundamentals of businesses are declining in nearly every sector. 10 out of 11 sectors have declining returns on invested capital.
by Sam McBride
Net Operating Profit After Tax (NOPAT)
November 19, 20190Comments

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.
by Kyle Guske II, Senior Investment Analyst, MBA
ICYMI
September 20, 20190Comments

ICYMI: New Long Idea, Bursting the Unicorn Bubble, New IPO Coverage, the Impact of Accounting Rule Changes & Details on the Drivers of ROIC

Here's what happened at New Constructs this past week.
by Kyle Guske II, Senior Investment Analyst, MBA
September 16, 20190Comments

Learn The Truth With A More Rigorous Dupont Analysis

Breaking ROIC into NOPAT Margin and Average Invested Capital Turns provides insights into the operating vs. capital efficiency of businesses.
by Kyle Guske II, Senior Investment Analyst, MBA
September 16, 20190Comments

Details on ROIC Drivers/Dupont Model Now in Your Portfolio

Get insights into how businesses can improve ROIC from your Portfolio page(s).
by Kyle Guske II, Senior Investment Analyst, MBA
November 19, 20131Comments

Danger Zone 11/19/13: Netflix (NFLX)

Netflix (NFLX) is in the Danger Zone this week. The DVD subscription and streaming video service has changed the way people watch movies and TV shows. However, its current valuation is out of touch with reasonable expectations for future cash flows and profitability.
by David Trainer, Founder & CEO
May 20, 20137Comments

Danger Zone 5/20/2013: Amazon.com (AMZN)

The belief that Internet retail is or will be more profitable than traditional retail is untrue. Amazon is in a competitive, low margin business that cannot justify the profit growth implied in its valuation.
by David Trainer, Founder & CEO
New Constructs
August 24, 20100Comments

Stock Pick of the Week: Sell/Short FedEx Corp (FDX)

RED FLAG: The main driver of the difference between Economic and Accounting earnings is FDX's $11.9bn of off-balance sheet debt, a big number compared to $19.7bn in Net Assets and $25.6bn of market value.
by David Trainer, Founder & CEO
New Constructs
August 17, 20101Comments

Stock Pick of the Week: Buy International Business Machines (IBM)

HIDDEN GEM: Our detailed valuation model shows that IBM grew its "economic" profits more than it accounting profits during its last fiscal year. Economic profits rose by $1.15bn while accounting profits rose by $1.09bn.
by David Trainer, Founder & CEO
New Constructs
July 20, 20100Comments

Stock Pick of the Week: Sell/Short Whole Foods Market (WFMI)

One of the Most Dangerous Stocks for July, Whole Foods has misleading earnings and a sky-high valuation, in our opinion. The same is true for all of our Most Dangerous Stocks.
by David Trainer, Founder & CEO
New Constructs
June 4, 20100Comments

GAP is Stock Pick of the Week – Hidden Gem

Hidden Gem - GPS: economic earnings are rising faster than reported accounting earnings b/c the company lowered the capital employed to run the business. GAAP earnings do not capture increase capital efficiency of the business.
by David Trainer, Founder & CEO
New Constructs
May 13, 20101Comments

Do It Yourself Guide To Finance

If you are interested in learning how to uncover the truth about the profitability and valuation of stocks, the first place I would tell you to go is the New
by David Trainer, Founder & CEO
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