October 21, 20200Comments

A Safe Call Regardless of the Election

Regardless of 2020’s election results, this firm’s prospects for continued long-term profit growth are much brighter than the stock’s valuation implies.

by Matt Shuler, Investment Analyst II

January 21, 20200Comments

The Truth About Netflix’s Valuation – Yahoo Finance

We joined Yahoo Finance’s On the Move on Tuesday, January 21 to provide insights into Netflix’s competitive position, valuation, and the state of the streaming wars.

by Kyle Guske II, Senior Investment Analyst, MBA

October 7, 20190Comments

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.

by Sam McBride

September 18, 20190Comments

How Companies Implemented the New Revenue Recognition Standard: An Overview

The standard, ASU 2014-09, primarily deals with revenue but will also have significant impacts on how companies report expenses, as well as assets and liabilities on the balance sheet.

by Sam McBride

September 9, 20192Comments

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.

by Sam McBride

March 7, 20194Comments

Loss of Licensed Content Is an Underrated Crisis for Netflix

As legacy media companies pull content, Netflix could lose much of its value to consumers just as the competition heats up.

by Sam McBride

August 22, 20180Comments

Worst Offenders: Pension Discount Rates

This report red flags the firms with the most underfunded pensions and the most aggressive discount rate assumptions for future benefit obligations.

by Sam McBride

June 18, 20182Comments

Worst Offenders: Expected Return On Plan Assets

This report red flags the firms with the most underfunded pensions and the most aggressive assumptions for returns they expect to earn on the pension assets.

by Sam McBride

January 31, 20180Comments

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).

by Sam McBride

January 17, 20184Comments

The Market Doesn’t Appreciate This Tech Company’s Growth

Strong profit growth and a cheap valuation earn this stock a spot in January’s Most Attractive Stocks List and make it this week’s Long Idea.

by Sam McBride

October 26, 20160Comments

The Best Acquisition We’ve Seen in 2016

While we’ve taken issue with many of the large acquisitions in 2016, this deal not only passes the economics test, but also creates a combined firm with a strategic focus on the future.

by Kyle Guske II, Senior Investment Analyst, MBA

August 15, 20160Comments

Danger Zone: 8×8 (EGHT)

This week’s Danger Zone is a company that claims consistent profitability and continued success, despite years of shareholder value destruction. Misleading non-GAAP results, large losses, and an overvalued stock price land 8x8 in the Danger Zone.

by Kyle Guske II, Senior Investment Analyst, MBA

April 12, 20160Comments

Free Cash Flow (FCF): Explanation & Examples

There are many ways to calculate free cash flow. Most approaches are short cuts to our more comprehensive approach to the calculation. The formula for FCF can be seen in Figure 1. For more on FCF, see within.

by Kyle Guske II, Senior Investment Analyst, MBA

March 14, 20160Comments

Danger Zone: Traditional Corporate Consulting

Those consultants who adopt cutting-edge tools will experience more success than those that remain wedded to older, more manual techniques. It’s time we place Traditional Corporate Consulting in the Danger Zone.

by Kyle Guske II, Senior Investment Analyst, MBA

February 24, 20160Comments

How EV/EBITDA Misses The Point On Valuation

In reality, EV/EBITDA can actually be significantly worse than P/E or P/B ratios because EBITDA ignores certain real costs of doing business like taxes, depreciation, and amortization. Put simply, EBITDA is even farther removed from the real cash flows of the business than EPS or net income.

by Kyle Guske II, Senior Investment Analyst, MBA

February 16, 20163Comments

How Buybacks Destroy Shareholder Value

Corporate America has the resources to deploy a large amount of capital and invest in new technologies and innovations that can drive growth. Instead, they just keep spending more and more money on buybacks.

by Sam McBride

November 17, 20151Comments

10 Land Mines From New FASB Rule For Off-Balance Sheet Debt

Last week, the Financial Accounting Standards Board (FASB) voted to update standards on operating lease accounting that would force companies to record as much as $2 trillion worth of lease obligations on their balance sheets.

by Sam McBride

April 2, 20150Comments

Finding Opportunity Behind the Scenes

This week we’re highlighting a company that operates behind the scenes but provides services paramount to the success of global telecom companies.

by Kyle Guske II, Senior Investment Analyst, MBA

March 12, 20153Comments

10 Items Affecting the Valuations of Prominent Companies

We’ve compiled a "top 10" list of the companies with the largest adjustments to their valuations. Some adjustments represent senior claims to equity holders that reduce economic book value and shareholder value while others are assets that we expect to be accretive to shareholder value.

by Andre Rouillard

February 19, 20150Comments

This Stock Has One of the Highest ROICs in Our Coverage Universe

This week's stock pick of the week has one of the highest returns on invested capital (ROIC) in our model, and its recent guidance update and cheap valuation indicates that now might be the perfect entry point.

by Andre Rouillard

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