COLM-->I believe that this small-mid cap 70 year old company shows the qualities I discussed in the post below, making it a stock worth studying over the next few months.
- sound fundamentals v.s. competitors: P/E 12 (30) P/tangible book 2 (6.22!) P/CF 10 (15)
- manageable debt: current ratio 5 (v.s. 2.3) leverage ratio 1.2 (v.s. 2.4)
- strong cash flow: P/FCF 24 (v.s. -59! for comp)
- rising dividend 1.2% with payout ratio only 15% (easily sustained)
- some share buy back activity (minimal)
- strong brand
- company has NEVER missed earnings expectations in its history as a public company (!)
- highest gross operating margin in the biz 44.6%
- all quantitative measures of management quality much higher than comps:
| Management Effectiveness (%) v.s. comp | |||
|---|---|---|---|
| Net Profit Margin (TTM) | 0.10 | 0.04 | |
| Net Profit Margin - 5 Yr Avg | 11.60 | 5.10 | |
| Return on Assets (TTM) | 11.90 | 4.50 | |
| Return on Assets - 5 Yr Avg | 14.20 | 5.90 | |
| Return on Investment (TTM) | 14.20 | 6.50 | |
| Return on Investment - 5 Yr Avg | 17.50 | 8.40 | |
| Efficiency v.s. comps | |||
| Revenue/Employee (TTM) | 477,242.00 | 169,078.00 | |
| Net Income/Employee (TTM) | 48,797.00 | 6,910.00 | |
| Receivable Turnover (TTM) | 3.50 | 6.30 | |
| Inventory Turnover (TTM) | 2.50 | 3.00 | |
| Asset Turnover (TTM) | 1.20 | 1.20 | |
- VERY high inside ownership 62% with some low level insider buying November 2007
- trading 33% below 52 week high
- global footprint in 73 countries
- expanding in North America with its own retail outlet stores, carefully avoiding overlap with the whole sale customer base
- it looks like a colder winter than usual is upon us... this often predicts better than usual earnings in the short term (global warming- bah! humbug! ;-) )
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