CSX Corp. - Fundamental Stock Research Analysis [View article]
tallguyz,
Thanks for the help and kind words about FAST Graphs. What your last paragraph points out is the benefit of the dynamic nature of FAST Graphs over relying on a mere static statistic. Since a company's growth rates change (either increase or decrease), we believe it's very valuable to be able to run as many time periods as necessary to get a good feel for valuation.
In our opinion, the long history serves a better purpose of providing a long-term perspective of how well the business has performed. In contrast, shorter time frames, as you suggest, are better for assessing valuation. However, we caution that a current 6-year view includes the great recession which should be taken into consideration when evaluating any business.
Thanks again for sharing your experience with FAST Graphs,
McKesson Corp: Fundamental Stock Research Analysis [View article]
snoopy44,
Yes, the FAST Graph is indicating that MCK is fairly valued (fully valued) based on the fact that the price is touching the orange line. The forecast earnings growth is 15% per annum based on 18 analysts reporting to Capital IQ.
Since a 10-year Treasury yield is currently 1.84% (1.9% on the FAST Graph in this article), I guess you could say that MKC is forecast to grow at 8 times the yield of a 10-year Treaasury (15% growth / 1.84% Yield = 8.15).
However, we are not sure that's really a sound way to look at it. Nevertheless, the FAST Graphs suggest that MCK is a sound investment today with above-average growth future potential. However, FAST Graphs should always represent the first step prior to a comprehensive due diligence effort.
Sleep Well At Night With This Dividend Aristocrat You Can Buy Right Now [View article]
Contheon,
Allow us to respond on Brad's behalf. FAST Graphs utilizes a formula that Standard & Poor's recommends to calculate FFO on all companies. This formula is a very close cousin to operating cash flows. Individual companies will often report different numbers based on their specific inclusions or exclusions of certain accounting metrics.
The reason that FAST Graphs uses this one formula is to provide a universal look for all companies. However, our calculated FFO may not be precisely what a given company might produce. However, our calculation does come directly from the company's statement of cash flows. Here is a link to the formula that FAST Graphs universally applies to all companies (REITs, MLPs, BDCs and even C Corps): http://bit.ly/VgZHeW
We realize this can cause confusion, however, we are also confident that our iteration of FFO provides a realistic and accurate depiction of a given company's cash flows available for distribution.
Target Corp.: Fundamental Stock Research Analysis [View article]
DanielleEmberley,
Thanks for your questions.
FAST Graphs™ is a web-based software that you use over the internet with a web browser. You don’t have to install any CDs, download any software, or worry about upgrades.
Once you sign up you will have a username and password that gives you access to FAST Graphs™ from any electronic device that has an Internet connection.
Lockheed Martin Corp.: Fundamental Stock Research Analysis [View article]
sneaker1404,
Thanks for the comment. Regarding changing the PE ratios, here is our reason for not specifically providing that ability. The reason we only use three formulas to determine what P/E ratio to apply to the orange line is because we have discovered that over certain ranges of growth the proper P/E ratio will be the same. The difference will be the rate of return that is driven by the growth rate. REmember a 15 P/E, which is quite common, is driven by the earnings yield it represents (6%-7%).
Furthermore, the scale to the right on the estimated earnings and return calculator does draw the orange and blue lines at different P/E ratios that can be pointed to with your mouse. However, the core fair value P/E (the dark orange line) is always calculated based on the respective earnings growth.
Target Corp.: Fundamental Stock Research Analysis [View article]
lwinkle,
Thanks. Wal-Mart looks very good as well on a valuation basis, in our opinion there is a lot of noise being made about one-month's worth of sales reports. We don't put too much faith in that kind of a data point.
Lockheed Martin Corp.: Fundamental Stock Research Analysis [View article]
viperman;
You are correct that FAST Graphs provides essential fundamentals at a glance in graphic form based on the numbers. However, the live tool is also designed to help you research stocks deeper and faster.
For example, you have a direct link to the company's website where you can examine their fundamentals, listen to conference calls, and review presentations from management on the business.
There are also links to other financial blogs where additional information can be gathered. Then once this information is complied, you can generate your own forward estimates and plug them into the estimated earnings and return calculator in order to portray your view of the future.
In other words, as we like to point out, FAST Graphs are a tool to think with. Therefore, although we believe that they provide an important view of a company's operating history and potential, they are offered as the first step, but we believe extremely important, prior to a more comprehensive due diligence process.
Eaton: Fundamental Stock Research Analysis [View article]
likeparty,
Chuck C (Chuck Carnevale) is the Co-Founder of FAST Graphs. He continues to publish his own articles, but the FAST Graphs team was asked to write about other stocks and asset classes outside of his personal investing philosophy. Since F.A.S.T. Graphs is a philosophy agnostic research tool and because his time is limited, he asked that we pick up the slack.
The big difference is that we offer pre-research based solely on F.A.S.T. Graphs. Our position is that our research tool provides a lot of information at a glance that delivers a clear perspective of the business behind the company and how the market has valued the business. We leave it up to the reader to determine if they think the company is worthy of further investigation, based on the essential fundamentals at a glance.
We hope you are finding our offerings of value and we welcome suggestions from readers.
International Business Machines Corp: Fundamental Stock Research Analysis [View article]
BAHAMAS1,
The data on the FAST Graph is correct. From what we can tell, although IBM has a calendar fiscal year-end, their dividend dates are odd. For example, in calendar year 2012, IBM paid .75 on Feb. 8, .85 on May 8, .85 on Aug. 8, and finally .85 on Nov. 8. Therefore, the total dividend paid in calendar year 2012 was $3.30. Their current rate is .85, therefore if you annualize that it would be the $3.40 you suggest.
Eaton: Fundamental Stock Research Analysis [View article]
Thanks, Mr. Fish.
You are correct, Standard & Poor's database is reflecting 5 quarters at .34 each. The adjustment has been implemented in order to correct the data. If you run a current FAST Graph it will reflect the proper 2011 dividend.
Chemed Corporation: Fundamental Stock Research Analysis [View article]
Russell Lane;
You are most likely drawing a 15 year graph on CHE. It’s important to understand that FAST Graphs™ is a dynamic tool. In other words, when you draw different time frames, FAST Graphs™ automatically calculates the different growth rates that apply to those different time frames. Just like our tool, a company’s growth rates are dynamic and change over time. This is why we designed FAST Graphs™ to be able to run Earnings and Price Correlated graphs over time frames as short as the last recent 2 years all the way up to 20 years of history. With this in mind, one of the best ways to use FAST Graphs™ to analyze a company is to start out running charts of 15 years (or even 20 years), followed by running shorter graphs.
We start with a 20-year graph, then we run a 15-year graph, then we run a 10-year graph, then we run a 5-year graph, followed by a 2 or 3-year graph. This exercise allows us to determine whether a company’s earnings growth rate is accelerating, decelerating, or even staying the same. Furthermore, since the tool automatically applies the appropriate valuation formulas, we are also able to ascertain a better perspective of current fair value.
But it’s up to you to decide what the significance of that information really means. This is what we mean when we say that FAST Graphs™ is a “tool to think with”. As an aside, we would never let FAST Graphs™, or any chart (i.e. technical charts, etc.) dictate to us what we should do. Instead, we prefer a tool like FAST Graphs ™ that helps us decide for ourselves based on analyzing the historical information.
The blue normal P/E ratio line is telling you what valuation the market has normally applied to the stock for the period that you are graphing. It does not necessarily indicate that the stock is fairly valued or undervalued. However, you need to understand that that does not necessarily mean that the stock is fairly valued if it trades on that line. In other words, it’s simply a piece of information telling you how the market normally prices the stock. On cases when the normal P/E ratio (the blue line) is way above fair value, I will personally not buy the stock just because the market has been pricing it that way.
Thank you for offering us the opportunity to clarify.
CSX Corp. - Fundamental Stock Research Analysis [View article]
Thanks for the help and kind words about FAST Graphs. What your last paragraph points out is the benefit of the dynamic nature of FAST Graphs over relying on a mere static statistic. Since a company's growth rates change (either increase or decrease), we believe it's very valuable to be able to run as many time periods as necessary to get a good feel for valuation.
In our opinion, the long history serves a better purpose of providing a long-term perspective of how well the business has performed. In contrast, shorter time frames, as you suggest, are better for assessing valuation. However, we caution that a current 6-year view includes the great recession which should be taken into consideration when evaluating any business.
Thanks again for sharing your experience with FAST Graphs,
FAST Graphs Team
Foot Locker Is On Sale And It's A Good Time To Buy [View article]
Thanks for the mention of FAST Graphs and including the graph on FL in your article. Good article, by the way.
FAST Graphs Team
McKesson Corp: Fundamental Stock Research Analysis [View article]
Yes, the FAST Graph is indicating that MCK is fairly valued (fully valued) based on the fact that the price is touching the orange line. The forecast earnings growth is 15% per annum based on 18 analysts reporting to Capital IQ.
Since a 10-year Treasury yield is currently 1.84% (1.9% on the FAST Graph in this article), I guess you could say that MKC is forecast to grow at 8 times the yield of a 10-year Treaasury (15% growth / 1.84% Yield = 8.15).
However, we are not sure that's really a sound way to look at it. Nevertheless, the FAST Graphs suggest that MCK is a sound investment today with above-average growth future potential. However, FAST Graphs should always represent the first step prior to a comprehensive due diligence effort.
FAST Graphs
Sleep Well At Night With This Dividend Aristocrat You Can Buy Right Now [View article]
Allow us to respond on Brad's behalf. FAST Graphs utilizes a formula that Standard & Poor's recommends to calculate FFO on all companies. This formula is a very close cousin to operating cash flows. Individual companies will often report different numbers based on their specific inclusions or exclusions of certain accounting metrics.
The reason that FAST Graphs uses this one formula is to provide a universal look for all companies. However, our calculated FFO may not be precisely what a given company might produce. However, our calculation does come directly from the company's statement of cash flows. Here is a link to the formula that FAST Graphs universally applies to all companies (REITs, MLPs, BDCs and even C Corps):
http://bit.ly/VgZHeW
We realize this can cause confusion, however, we are also confident that our iteration of FFO provides a realistic and accurate depiction of a given company's cash flows available for distribution.
FAST Graphs
Target Corp.: Fundamental Stock Research Analysis [View article]
Thanks for your questions.
FAST Graphs™ is a web-based software that you use over the internet with a web browser. You don’t have to install any CDs, download any software, or worry about upgrades.
Once you sign up you will have a username and password that gives you access to FAST Graphs™ from any electronic device that has an Internet connection.
This is a link to our website: http://bit.ly/t3XFTe
FAST Graphs
Eaton: Fundamental Stock Research Analysis [View article]
Thanks so much.
FAST Graphs
Lockheed Martin Corp.: Fundamental Stock Research Analysis [View article]
Thanks for the comment. Regarding changing the PE ratios, here is our reason for not specifically providing that ability. The reason we only use three formulas to determine what P/E ratio to apply to the orange line is because we have discovered that over certain ranges of growth the proper P/E ratio will be the same. The difference will be the rate of return that is driven by the growth rate. REmember a 15 P/E, which is quite common, is driven by the earnings yield it represents (6%-7%).
Furthermore, the scale to the right on the estimated earnings and return calculator does draw the orange and blue lines at different P/E ratios that can be pointed to with your mouse. However, the core fair value P/E (the dark orange line) is always calculated based on the respective earnings growth.
We hope this helps clarify things.
FAST Graphs
Target Corp.: Fundamental Stock Research Analysis [View article]
Thanks. Wal-Mart looks very good as well on a valuation basis, in our opinion there is a lot of noise being made about one-month's worth of sales reports. We don't put too much faith in that kind of a data point.
Regards,
FAST Graphs
Lockheed Martin Corp.: Fundamental Stock Research Analysis [View article]
You are correct that FAST Graphs provides essential fundamentals at a glance in graphic form based on the numbers. However, the live tool is also designed to help you research stocks deeper and faster.
For example, you have a direct link to the company's website where you can examine their fundamentals, listen to conference calls, and review presentations from management on the business.
There are also links to other financial blogs where additional information can be gathered. Then once this information is complied, you can generate your own forward estimates and plug them into the estimated earnings and return calculator in order to portray your view of the future.
In other words, as we like to point out, FAST Graphs are a tool to think with. Therefore, although we believe that they provide an important view of a company's operating history and potential, they are offered as the first step, but we believe extremely important, prior to a more comprehensive due diligence process.
FAST Graphs
Eaton: Fundamental Stock Research Analysis [View article]
Chuck C (Chuck Carnevale) is the Co-Founder of FAST Graphs. He continues to publish his own articles, but the FAST Graphs team was asked to write about other stocks and asset classes outside of his personal investing philosophy. Since F.A.S.T. Graphs is a philosophy agnostic research tool and because his time is limited, he asked that we pick up the slack.
The big difference is that we offer pre-research based solely on F.A.S.T. Graphs. Our position is that our research tool provides a lot of information at a glance that delivers a clear perspective of the business behind the company and how the market has valued the business. We leave it up to the reader to determine if they think the company is worthy of further investigation, based on the essential fundamentals at a glance.
We hope you are finding our offerings of value and we welcome suggestions from readers.
The F.A.S.T. Graphs Team
International Business Machines Corp: Fundamental Stock Research Analysis [View article]
Thanks.
FAST Graphs
International Business Machines Corp: Fundamental Stock Research Analysis [View article]
The data on the FAST Graph is correct. From what we can tell, although IBM has a calendar fiscal year-end, their dividend dates are odd. For example, in calendar year 2012, IBM paid .75 on Feb. 8, .85 on May 8, .85 on Aug. 8, and finally .85 on Nov. 8. Therefore, the total dividend paid in calendar year 2012 was $3.30. Their current rate is .85, therefore if you annualize that it would be the $3.40 you suggest.
We hope this clarifies things.
FAST Graphs
International Business Machines Corp: Fundamental Stock Research Analysis [View article]
According to concensus estimates, the answer is yes. In other words, if the estimates are correct, your expectation is accurate.
Regards,
FAST Graphs
Eaton: Fundamental Stock Research Analysis [View article]
You are correct, Standard & Poor's database is reflecting 5 quarters at .34 each. The adjustment has been implemented in order to correct the data. If you run a current FAST Graph it will reflect the proper 2011 dividend.
Thanks for the head's up,
FAST Graphs
Chemed Corporation: Fundamental Stock Research Analysis [View article]
You are most likely drawing a 15 year graph on CHE. It’s important to understand that FAST Graphs™ is a dynamic tool. In other words, when you draw different time frames, FAST Graphs™ automatically calculates the different growth rates that apply to those different time frames. Just like our tool, a company’s growth rates are dynamic and change over time. This is why we designed FAST Graphs™ to be able to run Earnings and Price Correlated graphs over time frames as short as the last recent 2 years all the way up to 20 years of history. With this in mind, one of the best ways to use FAST Graphs™ to analyze a company is to start out running charts of 15 years (or even 20 years), followed by running shorter graphs.
We start with a 20-year graph, then we run a 15-year graph, then we run a 10-year graph, then we run a 5-year graph, followed by a 2 or 3-year graph. This exercise allows us to determine whether a company’s earnings growth rate is accelerating, decelerating, or even staying the same. Furthermore, since the tool automatically applies the appropriate valuation formulas, we are also able to ascertain a better perspective of current fair value.
But it’s up to you to decide what the significance of that information really means. This is what we mean when we say that FAST Graphs™ is a “tool to think with”. As an aside, we would never let FAST Graphs™, or any chart (i.e. technical charts, etc.) dictate to us what we should do. Instead, we prefer a tool like FAST Graphs ™ that helps us decide for ourselves based on analyzing the historical information.
The blue normal P/E ratio line is telling you what valuation the market has normally applied to the stock for the period that you are graphing. It does not necessarily indicate that the stock is fairly valued or undervalued. However, you need to understand that that does not necessarily mean that the stock is fairly valued if it trades on that line. In other words, it’s simply a piece of information telling you how the market normally prices the stock. On cases when the normal P/E ratio (the blue line) is way above fair value, I will personally not buy the stock just because the market has been pricing it that way.
Thank you for offering us the opportunity to clarify.
FAST Graphs