It's much worse than that unfortunately.
Pre-tax income 2013: $310m on $2.3b in sales
Pre-tax income 2014: $279m on $2.26b in sales
Pre-tax income 2015: $83m on $2.5b in sales
Pre-tax income 2016: -$20m on $2.46b in sales
Pre-tax income last four quarters: -$544m on $1.95b in sales
Net income for 2013 was $247m, for 2014 it was $228m, for 2015 it was $81m. For the last eight quarters, it's nearly a negative billion dollars.
Net tangible assets 2015: $676 million
Net tangible assets 3Q17: -$1.3 billion
Their business is in trouble.
To make matters worse, they've got a $24 billion market cap. When times were good in 2013, they'd have been sporting a near 100 PE ratio with that market cap. Today it's particularly crazy, given they've had net negative growth over the last five years and they're losing a lot of money.
Fair value in my opinion is closer to 70% lower than what they're trading for right now. That's assuming 30 times earnings on getting back to $230m +/- in net income. In more normal times that 30 PE would be very rich for a zero growth company. A more skeptical look at them, would be they're worth 85% to 90% less than what they're trading for today, if their business continues to contract or remains weak and they struggle to get back to something more like $80m to $100m in net income.
Pre-tax income 2013: $310m on $2.3b in sales
Pre-tax income 2014: $279m on $2.26b in sales
Pre-tax income 2015: $83m on $2.5b in sales
Pre-tax income 2016: -$20m on $2.46b in sales
Pre-tax income last four quarters: -$544m on $1.95b in sales
Net income for 2013 was $247m, for 2014 it was $228m, for 2015 it was $81m. For the last eight quarters, it's nearly a negative billion dollars.
Net tangible assets 2015: $676 million
Net tangible assets 3Q17: -$1.3 billion
Their business is in trouble.
To make matters worse, they've got a $24 billion market cap. When times were good in 2013, they'd have been sporting a near 100 PE ratio with that market cap. Today it's particularly crazy, given they've had net negative growth over the last five years and they're losing a lot of money.
Fair value in my opinion is closer to 70% lower than what they're trading for right now. That's assuming 30 times earnings on getting back to $230m +/- in net income. In more normal times that 30 PE would be very rich for a zero growth company. A more skeptical look at them, would be they're worth 85% to 90% less than what they're trading for today, if their business continues to contract or remains weak and they struggle to get back to something more like $80m to $100m in net income.