Portfolio Return on Totem List Update

October 28th, 2017 Posted by Stocks Portfolio No Comment yet

Portfolio return on the company list we monitored. Totem is updating overall returns as of August 31, 2017. We believed these companies were valuable and then we publicly reveal the results of returns. We analyzed and scrutinized through our own method of filtering, leaving only the companies with value. The summary of the analysis of the portfolio return is shown in the table below. 

Period Cost Value Overall return Days Annual return Time Weighted
5/23/2013 12/31/2013 23,711 40,593 71.20% 222 38.68% 1.079
12/31/2013 8/13/2014 73,341 93,201 27.08% 225 15.92% 1.035
8/13/2014 8/30/2014 207,206 223,509 7.87% 17 0.35% 1.001
8/30/2014 12/31/2014 223,509 211,710 -5.28% 123 -1.81% 0.996
12/31/2014 3/25/2015 377,599 383,182 1.48% 84 0.34% 1.001
3/25/2015 12/2/2015 437,435 473,353 8.21% 252 5.60% 1.013
12/2/2015 12/31/2015 371,583 380,531 2.41% 29 0.19% 1.000
12/31/2015 4/12/2016 402,239 423,449 5.27% 103 1.46% 1.003
4/12/2016 5/5/2016 367,711 361,724 -1.63% 23 -0.10% 1.000
5/5/2016 5/31/2016 361,724 362,590 0.24% 26 0.02% 1.000
5/31/2016 6/30/2016 362,590 357,295 -1.46% 30 -0.12% 1.000
6/30/2016 7/31/2016 357,295 377,062 5.53% 31 0.46% 1.001
7/31/2016 8/31/2016 377,062 391,718 3.89% 31 0.32% 1.001
8/31/2016 9/30/2016 391,718 406,762 3.84% 30 0.31% 1.001
9/30/2016 10/31/2016 406,762 407,371 0.15% 31 0.01% 1.000
10/31/2016 11/30/2016 407,371 407,171 -0.05% 30 0.00% 1.000
11/30/2016 12/31/2016 791,544 781,540 -1.26% 31 -0.11% 1.000
12/31/2016 1/31/2017 781,540 822,893 5.29% 31 0.44% 1.001
1/31/2017 2/28/2017 822,893 853,749 3.75% 28 0.28% 1.001
2/28/2017 3/31/2017 860,749 877,985 2.00% 31 0.17% 1.000
3/31/2017 4/30/2017 930,880 966,310 3.81% 30 0.31% 1.001
4/30/2017 5/31/2017 979,756 1,000,174 2.08% 31 0.18% 1.000
5/31/2017 6/30/2017 1,000,174 979,344 -2.08% 30 -0.17% 1.000
6/30/2017 7/31/2017 979,344 1,037,439 5.93% 31 0.49% 1.001
7/31/2017 8/31/2017 1,037,439 1,002,025 -3.41% 31 -0.29% 0.999
          1561   13.88%

If you follow us all the way from the beginning you probably make the same portfolio return of 13.88 percent. We invite you to keep a close watch on the companies we monitored which will serve as a guide.

Thank you for reading.

Time-Weighted Rate of Return (TWRR)

July 13th, 2017 Posted by Stocks Portfolio No Comment yet

Time-Weighted Rate of Return (TWRR) on Portfolio

TWRR on one portfolio list we maintained. These companies were recommended as Buy in the articles written and published in totemtalk.com/member from early 2012 to the present. Each company has a Buy of 100 shares from the date the article was published. The Cris Portfolio is one of the three portfolio lists monitored, maintained and updated periodically as part of my training in Totem.

Period Cost Value Overall

Return

Days Annual

Return

TWRR
08-12-2012 12-31-2012 68,199 64,884 -4.86% 141 -0.40% 0.996000
12-31-2012 12-31-2013 130,528 141,587 8.47% 365 1.71% 1.017078
12-31-2013 12-31-2014 155,792 174,716 12.15% 365 2.42% 1.024157
12-31-2014 12-31-2015 160,853 183,189 13.89% 365 2.74% 1.027443
12-31-2015 08-31-2016 161,200 187,392 16.25% 244 2.12% 1.021177
08-31-2016 09-30-2016 161,200 184,224 14.28% 30 0.23% 1.002287
09-30-2016 10-31-2016 161,200 179,672 11.46% 31 0.19% 1.001920
10-31-2016 11-30-2016 161,200 184,224 14.28% 30 0.23% 1.002287
11-30-2016 12-31-2016 161,200 179,672 11.46% 31 0.19% 1.001920
12-31-2016 01-31-2017 317,069 332,186 4.77% 31 0.08% 1.000824
01-31-2017 02-28-2017 317,069 354,834 11.91% 28 0.18% 1.001799
02-28-2017 03-31-2017 317,069 371,784 17.26% 31 0.28% 1.002819
03-31-2017 04-30-2017 317,069 381,453 20.31% 30 0.32% 1.003169
04-30-2017 05-31-2017 317,069 413,624 30.45% 31 0.47% 1.004712
1753 11.24%

The above table shows an overall time-weighted rate of return of 11.24 percent. Following our recommendations from the beginning with all the companies written and published on the company’s website probably you might have the same time-weighted rate of return of 11.24 percent.

Thank you for reading.

Buckle Inc (BKE) Graph Analysis

May 4th, 2017 Posted by Graph Analysis 1 comment

Buckle IncBuckle Inc is a retailer of casual apparel, footwear, and accessories for fashion-conscious young men and women. The company markets a wide selection of brand names and private label casual apparel. It includes denim, other casual bottoms, tops, sportswear, outerwear, accessories, and footwear. Further, they operate in 450 stores in 44 states. Founded in 1948 by David Hirschfield. The company is headquartered in Kearney, Nebraska, United States.  Furthermore, it began as Mills Clothing, a men’s clothing store.

 

A. Cash Flow

BKE CF

B. Balance Sheet

BKE BS

C. Ratios

BKE FINANCIAL RATIOS

 

D. Income and Market

BKE INC MRKT

 

E. Key Executive Compensation

BKE COMPENSATION

F. Buckle Financial Strength

BKE STRENGTH

Thank you.

 

Researched and written by Criselda

Twitter: criseldarome

Vera Bradley Inc (VRA) Graph Analysis

April 28th, 2017 Posted by Graph Analysis No Comment yet

Vera BradleyVera Bradley Inc is a leading designer of luggage, handbags, accessories, travel and gift items. Founded by Barbara Bradley Baekgaard and Patricia R. Miller on 1982.  The company was incorporated on June 23, 2010, and headquartered in Fort Wayne, Indiana, United States. The company is listed on NASDAQ with company symbol VRA on October 2010.          

            

A. VRA CASH FLOW

VRA CASH FLOW

B. VRA BALANCE SHEET

VRA BS

C. VRA INCOME AND MARKET

VRA INC

 

D. VRA RATIOS

VRA RATIOS

 

E. VRA KEY EXECUTIVE COMPENSATION

VRA COMPENSATION

F. VRA FINANCIAL STRENGTH

VRA STRENGTH

Thank you.

Researched and created by Criselda

Twitter: criseldarome

YY Inc (YY) Graph Analysis

April 25th, 2017 Posted by Graph Analysis No Comment yet

YYY IncY Inc is one of the major live streaming social media platforms in China.  The company is leading in active monthly and daily users and total time spent by users compared to its industry peers. It engages users to communicate in real-time online group activities through voice, text, and video. YY Inc was incorporated on July 22, 2011. The company was listed on NASDAQ in November 2012 with company symbol YY.

 

A. CASH FLOWS

YY CF

B. BALANCE SHEET

YY BS

C. RATIOS

YY RATIOS

D. INCOME AND MARKET

YY Inc

E. YY FINANCIAL STRENGTH

YY Strength

Thank you.

Researched and created by Criselda

Twitter: criseldarome

Promotora y Operadora de Infraestructura SA de CV ADR (PUODY)

April 20th, 2017 Posted by Graph Analysis 2 comments

PUODYPUODY is the company symbol for Promotora y Operadora de Infraestructura SAB de CV, a Mexican construction, and infrastructure company. Primarily doing development, construction, operation, maintenance and financing of highways, ports, railways and airport projects, as well as the construction and operation of wastewater and potable water treatment plants.

 

A. CASH FLOW

PUODY CF

B. BALANCE SHEET

PUODY BS

C. RATIOS

PUODY Ratios

D. INCOME AND MARKET

PUODY INC AND MARKET

E. PUODY FINANCIAL STRENGTH

PUODY FINANCIAL STRENGTH

Thank you.

Researched and Created by Criselda

Twitter: criseldarome

 

 

Performance of Totem’s Portfolio Was Unveiled

April 18th, 2017 Posted by Stocks Portfolio No Comment yet

Portfolio PerformancePerformance of Totem’s portfolio was unveiled today. We are updating overall returns we made from May 2013 to December 31, 2016.  We are monitoring companies we believed were valuable and we publicly reveal the results of returns.

Totem analyzed and scrutinized each company through our own method of filtering and leaving only the companies with value as a guide for beginners in investing.

Performance Summary of  Time-Weighted Rate of Return 

We have cracked the analysis we made as of December 31, 2016.

Period Cost Value Overall Return Days Annual return Time Weighted
5/23/2013 12/31/2013 23,711 40,593 71.20% 222 142.06% 1.095
12/31/2013 8/13/2014 73,341 93,201 27.08% 225 47.51% 1.042
8/13/2014 8/30/2014 207,206 223,509 7.87% 17 408.42% 1.001
8/30/2014 12/31/2014 223,509 211,710 -5.28% 123 6.59% 0.995
12/31/2014 3/25/2015 377,599 383,182 1.48% 84 6.59% 1.001
3/25/2015 12/2/2015 437,435 473,353 8.21% 252 12.11% 1.015
12/2/2015 12/31/2015 371,583 380,531 2.41% 29 34.92% 1.001
12/31/2015 4/12/2016 402,239 423,449 5.27% 103 19.97% 1.004
4/12/2016 5/5/2016 367,711 359,903 -2.12% 23 -28.87% 1.000
5/5/2016 5/31/2016 359,903 362,753 0.79% 26 11.71% 1.000
5/31/2016 6/30/2016 362,753 357,506 -1.45% 30 -16.24% 1.000
6/30/2016 7/31/2016 357,506 377,261 5.53% 31 88.38% 1.001
7/31/2016 8/31/2016 377,261 391,919 3.89% 31 56.64% 1.001
8/31/2016 9/30/2016 391,919 406,971 3.84% 30 58.17% 1.001
9/30/2016 10/31/2016 406,971 407,614 0.16% 31 1.88% 1.000
10/31/2016 11/30/2016 407,614 407,350 -0.06% 30 -0.79% 1.000
11/30/2016 12/31/2016 407,350 397,340 -2.46% 31 -25.39% 0.999
1318 16.17%

Following us from the beginning you probably make the same returns as we did from the list we monitored. In the next article, we will provide an updated analysis for the first quarter of 2017. We invite you to keep watch on the articles we are posting. We will reveal the next overall analysis.

Thank you for reading.

 

If you want to read our previous post on blog click here.

 

Francesca’s Holdings Corp (FRAN) Graph Analysis

April 17th, 2017 Posted by Graph Analysis No Comment yet

Francesca's logoFrancesca’s Holdings Corp (FRAN), a fast-growing specialty retailer in the United States. Founded in 1999 and headquartered in Houston, Texas, United States. The company conducts its business through subsidiaries.

 

A. FRAN CASH FLOW

FRAN CF

 

B. FRAN BALANCE SHEET

FRAN BS

C. FRAN RATIOS

FRAN RATIOS

 

 

D. FRAN INCOME AND MARKET

FRAN INC

E. FRAN KEY EXECUTIVE COMPENSATION

FRAN COMPENSATION

F. FRAN FINANCIAL STRENGTH

FRAN STRENGTH

Thank you for reading.

 

Researched and Created by Criselda

Twitter: criseldarome

 

GameStop Corporation Class A Extended Analysis

January 5th, 2017 Posted by Extended Analysis 2 comments

GameStop Company Profile

GameStop Corporation is a global retailer of the multichannel video game, pop culture collectibles, consumer electronics, and also wireless services. Founded in 1984 as Babbage’s in Dallas, Texas, USA by James McCurry and Gary M. Kusin. The name was changed to GameStop in the year 2000. In addition, the company is headquartered in Grapevine, Texas, US. GameStop operates over 7,000 stores across 14 countries. Further, the company’s initial public offering was on February 2002 under New York Stock Exchange (NYSE) with stock symbol GME. Furthermore, the company has approximately 40,000 employees worldwide.

GameStop Extended Graph Analysis

 

A. GameStop Cash Flows

gme-cf

  Net Cash Provided by Operating Activities Net Cash Used for Investing Activities Net Cash Provided by Financing Activites Capital Expenditures Free Cash Flows
2012 624,700,000 -201,600,000 -492,600,000 -165,100,000 459,600,000
2013 632,400,000 -152,700,000 -498,500,000 -139,600,000 492,800,000
2014 762,700,000 -207,500,000 -350,600,000 -125,600,000 637,100,000
2015 480,500,000 -235,900,000 -131,200,000 -159,600,000 320,900,000
2016 656,800,000 -444,600,000 -346,200,000 -173,200,000 483,600,000
2017 600,300,000 -648,400,000 209,900,000 -149,600,000 450,700,000

Facts

  • Cash from operating activities was $600 million; also have a negative growth of 4 percent in five years.
  • Cash from investing activities was $648 million; also the investment in property, plant, and equipment were used.
  • Financing activities were $209.9 million; also long-term debt issued at $1 billion was used in the activities.
  • Capital expenditure was $149.6 million; also represents purchases of property, plant, and equipment at $149.6 million.
  • Free cash flow was $450.7 million; also free cash flow is greater than net income.

Explanation

  • Cash from operating activities has an erratic movement due to trend in net income.
  • Net acquisition of $504 million was used in investing activities.
  • Long-term debt issued of $1.04 billion was used in financing activities.
  • Free cash flow has negative growth of 2 percent from 2012.

Interpretation

GameStop is efficient in managing the business operation and capable of generating sufficient cash from operating activities.

Summary

The company’s cash activities were sound, in addition, GME was able to generate a free cash flow after capital expenditures. The company has the cash to expand its assets for development and opportunities.

B. GameStop Balance Sheet

gme-bs

  Working Capital Working Capital less Inventory Total Current Assets Total Assets Total Current Liabilities Total Liabilities Total Equity Total Debt
2012 363,000,000 -774,500,000 1,997,300,000 4,847,400,000 1,633,900,000 1,805,300,000 3,042,100,000 0
2013 296,000,000 -875,300,000 2,010,900,000 4,133,600,000 1,715,300,000 1,847,300,000 2,286,300,000 0
2014 223,000,000 -975,900,000 1,949,600,000 4,091,400,000 1,726,000,000 1,840,000,000 2,251,400,000 78,400,000
2015 423,000,000 -721,800,000 2,062,500,000 4,246,300,000 1,639,700,000 2,178,600,000 2,067,700,000 128,500,000
2016 144,000,000 1,019,000,000 1,938,800,000 4,334,900,000 1,794,400,000 2,253,900,000 2,181,000,000 148,900,000
2017 207,700,000 -1,633,600,000 2,358,800,000 5,230,600,000 2,151,100,000 3,106,500,000 2,124,100,000 188,000,000

Facts:

  • Working capital was $208 million; also has negative growth of 43 percent.
  • Inventory is greater than the working capital.
  • Current assets were $2.4 billion; also grew 18 percent.
  • Total assets were $5.2 billion; also grew 8 percent.
  • Current liabilities was $2.2 billion; also increased by 32 percent.
  • Total liabilities was $3.1 billion; also increased by 72 percent.
  • Equity was $2.1 billion; also have a negative growth of 30 percent.
  • Total debt increased 140 percent in 4 years.

Explanation

  • Working capital was erratic in six years.
  • Current assets were erratic; also represents 45 percent of total assets.
  • Cash and cash equivalent is 15 percent of total current assets.
  • Inventories is 69 percent of total current assets.
  • Total assets in increasing year-over-year from 2014 at an averaged 9 percent.  
  • Current liabilities represents 69 percent of total liabilities.
  • Total liabilities is 59 percent of total liabilities and equity.
  • Equity is 41 percent of total liabilities and equity.
  • The total debt represents 6 percent of total liabilities.

Interpretation

The balance sheet of GameStop is stable and sound. The ratio of current assets to current liabilities is 1.10 and has a positive working capital in the last five years. The company is capable of paying its short-term financial obligations in due time.

Summary

The ratio of current assets to current liabilities is 1.10 and has a positive working capital in the last five years. Moreover, the company is capable of paying its short-term financial obligations in due time. Total liabilities is greater than equity by 9 percent.

C. GameStop Ratios

gme-ratios

Net Margin (%) Return on Assets (%) Return on Equity (%) Asset Turnover (average) Financial Leverage (average) Debt to Equity (%)
2012 3.56 6.86 11.45 1.93 1.59 0
2013 -3.03 -6.01 -10.12 1.98 1.81 0
2014 3.92 8.61 15.61 2.2 1.82 0
2015 4.23 9.43 18.2 2.23 2.05 0.17
2016 4.3 9.39 19.42 2.18 2.08 0.17
2017 4.32 7.79 19.3 1.81 2.46 0.38

Facts:

  • Net margin is 4.32, also averaged 2.88.
  • Return on assets was 7.79, also averaged 6.01.
  • Return on equity was 19.3, also averaged 12.31.
  • Asset turnover was 1.81, also averaged 2.06.
  • Financial leverage was 2.46, also averaged 1.97.
  • Debt to equity is 0.38, also increased 24 percent from 2015.

Explanation

  • Net margin suffered negative in 2013 due to increased operating expenses and decreased revenue, which resulted in negative operating income.
  • Return on assets decreased by 17 percent due to decreases in net income in the trailing twelve months.
  • Return on equity was acceptable from 2014 to 2017ttm.
  • Asset turnover indicates that GME is generating $1.81 revenue for every dollar invested in assets.
  • Financial leverage shows that GME has $2.46 of total assets for every $1 of equity.
  • GME is using 38 percent of total debt against equity.

Interpretation

The company has an acceptable net margin, return on assets and return on equity in the last four years. Moreover, earnings show profitability in the last four years.

Summary

The net margin increases year-over-year from 2014 at an average 4.19. In addition, GME was able to provide a decent return on the investment made in equity. Further, its total assets have 250 percent for every dollar of equity. Furthermore, total debt is one-third of equity.

D. GameStop Income and Market

gme

 

  Gross Profit Operating Expenses Operating Income Net Income Intrinsic value (whole company) Market Capitalization
2012 2,679,500,000 2,109,600,000 569,900 339,900 3,704,070 3,040,000
2013 2,651,500,000 2,693,100,000 -41,600 -269,700 1,792,980 5,705,000
2014 2,661,100,000 2,087,600,000 573,500 354,200 2,848,520 3,668,000
2015 2,775,900,000 2,157,600,000 618,300 393,100 2,584,310 2,935,000
2016 2,918,300,000 2,270,100,000 648,200 402,800 2,417,130 2,515,000
2017 3,044,600,000 2,391,600,000 653,000 392,300 2,384,720 2,600,000

Facts:

  • Gross profit was $3 billion; also grew 14 percent in 5 years.
  • Operating expenses was $2.39 billion; also increased by 14 percent in five years.
  • Operating income is $653 million; also grew 15 percent in five years.
  • Net income is $392 million; also grew 15 percent in five years.
  • The intrinsic value was $2.4 billion; also had a negative growth of 36 percent in five years.
  • Market capitalization is $2.6 billion; also had a negative growth of 14 percent in five years.

Explanation

  • Gross profit represents 33.5 percent of revenue; also increased by 2 percent in the trailing twelve months.
  • Operating income represents 7 percent of net sales.
  • Net income was erratic; also represents 4 percent of net sales.
  • The intrinsic value is lower than the market value
  • The stock of GameStop is overvalued.

Interpretation

The company shows a positive bottom line in the past four years. Moreover, the stock of GameStop is overvalued in the last five years.

Summary

GameStop operates the business in four Video Games Brands segments and Technology Brands segments. Moreover, the cost of sales represents two-thirds of net sales, in addition, operating income is 7 percent of revenue.

E. GameStop Key Executive Compensation

gme-compensation

2011 2012 2013 2014 2015
Net Income 339,900,000 -269,700,000 354,200,000 393,100,000 402,800,000

Key Executive Compensation

Salary 4,043,077 3,926,615 3,424,297 4,075,750 3,957,500
Bonus 7,116,278 5,012,512 2,847,000 0 0
Restricted Stock Award 3,356,850 20,825,448 7,941,159 9,592,636 12,790,157
Securities Options 0 0 2,641,839 3,195,914 0
Non-equity compensation 4,751,250 4,324,500 4,936,000 4,952,100 6,054,720
Other Compensation 108,728 583,404 594,426 890,209 468,812
Total Executive Compensation 19,376,183 34,672,479 22,384,721 22,706,609 22,271,189
Percent vs Net Income 5.70% -12.86 6.32% 5.78% 5.78%

Chief Executive Officer – J. Paul Raines

Salary 1,027,692 1,049,808 1,059,423 1,201,346 1,246,923
Bonus 2,254,445 1,515,000 975,000 0 0
Restricted Stock Award 1,042,500 7,164,087 3,002,227 3,751,078 5,002,330
Securities Options 0 0 998,757 1,250,236 0
Non-equity compensation 1,545,000 1,545,000 2,120,000 2,057,000 2,650,000
Other compensation 5,743 163,299 193,692 344,916 240,644
Total 5,875,380 11,437,194 8,349,099 8,604,576 9,139,897
Percent vs total compensation 30,32% 32.99% 37.30% 37.89% 39.28%

Chief Financial Officer and Executive Vice President – Robert A. Lloyd

Salary 546,154 607,692 635,308 653,904 685,462
Bonus 785,433 542,512 409,500 0 0
Restricted Stock Award 437,850 3,526,278 1,262,097 1,261,915 1,681,901
Securities Options 0 0 419,610 420,085 0
Non-equity compensation 412,500 450,000 636,000 556,750 729,280
Other compensation 6,940 85,132 112,920 121,046 59,583
Total 2,188,877 5,211,614 3,475,435 3,013,700 3,156,226
Percent vs total compensation 11.30% 15.03% 15.53% 13.27% 13.56%

Chief  Operating Officer – Tony D. Bartel

Salary 773,077 819,115 829,566  853,558  896,538 
Bonus 1,260,000 985,000 585,000 
Restricted Stock Award 625,500 4,862,277 1,800,443  1,802,736  2,402,371 
Securities Options 0 0 559,169  600,069 
Non-equity compensation 581,250 604,500 830,000  726,750  1,192,500 
Other compensation 10,966 123,754 140,234  143,820  45,463 
Total 3,250,793 7,394,646 4,784,412  4,126,933  4,536,872 
Percent vs total compensation 16.78% 21.33% 21.37%  18.18%  19.50% 

Executive Chairman of the Board – Daniel A. Damatteo      

Salary 1,250,000  944,231  900,000  821,865  556,731 
Bonus 2,254,000  1,477,500  877,500     
Restricted Stock Award 938,250  2,534,364  1,876,392  1,875,539  2,501,165 
Securities Options      624,303  625,304   
Non-equity compensation 1,875,000  1,350,000  1,350,000  1,147,500  874,500 
Other compensation 77,913  144,100  147,580  184,802  72,244 
Total 6,395,163  6,450,195  5,775,775  4,655,010  4,004,640 
Percent vs total compensation 33.01%  18.60%  25.80%  20.50%  17.21% 

 Executive Vice President and President, GameStop International – Michael K. Mauller

Salary 446,154 505,769 0 545,077 571,846
Bonus 562,400 492,500 0
Restricted Stock Award 312,750 2,738,442 0 901,368 1,202,390
Securities Option 0 300,220
Non-equity compensation 337,500 375,000 0 464,100 608,440
Other compensation 7,166 67,119 0 95,625 50,878
Total 1,665,970 4,178,830 0 2,306,390 1,433,554
Percent vs total compensation 8.60% 12.05% 0 10.16% 10.46%
Sales, general & administrative (SG&A) expenses 1,698,800,000 1,842,100,000 1,835,900,000 1,892,400,000 2,001,000,000
SG&A less total compensation 1,679,423,817 1,807,427,521 1,813,515,279 1,869,693,391 1,977,728,811
Percent of total compensation vs SG&A 1.14% 1.88% 1.22% 1.20% 1.16%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Source: Morningstar.com

Facts:

  • The total key executive compensation was $23 million; also represents 6 percent of net income.
  • Total Chief Executive Officer pay was $9 million; also represents 39 percent of total executive pay.
  • Chief Financial Officer pay was $3.2 million; also represents 14 percent of total executive pay.
  • Total Chief Operating Officer pay was $4.5 million; also represents 20 percent of net total executive pay.
  • Chief Operating Officer total pay was $4.5 million; also represents 19.5 percent of total executive pay.
  • Executive Chairman of the Board total pay was $4 million; also represents 17 percent of total executive pay.
  • Executive Vice President and President GameStop International pay were $2.4 million; also represents 10 percent of total executive pay.
  • Total compensation represents 1.16 percent of sales, general and administrative expenses.

Explanation

  • The total cash compensation is consist of base pay and bonuses.
  • The restricted stock award is grant date fair value stock, option awards, and long-term incentives.
  • Cash salary is 17 percent of the total executive compensation.
  • In 2012, the company has paid the highest total pay when the company suffered a negative net income at a rate of 13 percent of net income.
  • The company’s total compensation was averaging 6 percent from 2013.
  • GME spent contributions to Democrats and Republicans at $13,667 in 2016.

Interpretation

Overall, GameStop total executive compensation was 6 percent of net income which is fair.

Summary

The company spent an averaged 6 percent of net earning to executive compensation.  Moreover, GameStop does not have lobbying expenses, however, they spent money on contributions to Politicians.

F. GameStop Contribution to Politicians

gme-contribution-to-politician

Period Total Democrats Republicans Percent to Democrats Percent to Republicans
2002 3,000 3,000 0 100% 0%
2004 30,000 26,000 4,000 87% 13%
2006 500 500 0 100% 0%
2008 16,075 11,200 4,575 70% 29%
2010 1,500 500 1,000 33% 67%
2012 17,050 10,650 6,400 63% 38%
2014 30,650 24,450 5,200 83% 17%
2016 13,667 12,961 706 95% 5%

Source: OpenSecrets.org (Center for Responsive Politics)

Facts

  • The total current contributions made to politicians was $13,667.
  • $12,961 was contributed to Democrats; also represents 95 percent of total contributions.
  • $706 was contributed to the Republicans; also represents 5 percent of total contributions.
  • Contributions were unpredicted.

Explanations

The company spent contributions to political candidates, party committees like the RNC or DSSC, other PACs or outside spending groups.

Interpretations

GameStop has no lobbying expenses, however, spending year-over-year on contributions to politicians.

Summary

GameStop spent contributions to Democrats and Republicans. In addition, the company ranked 6,803 of 18,403 in contributions.

G. GameStop Financial Strength

GameStop Strength

2012 2013 2014 2015 2016 2017
Score 4.28 5.73 4.88 4.27 3.95 3.15

Facts:

  • The score is falling down from 2013.
  • In 2013 was up 34 percent.
  • It was down 15 percent in 2014.
  • It was down 13 percent in 2015.
  • In 2016, the score was down 7 percent.
  • The future score in 2017 was down 20.45 percent.

Explanation

  • The future score was 3.15 based on the current trend.
  • The past five years shows financial stability.
  • The future scores in 2017 also show financial stability.

Interpretation

The financial strength test is falling year-over-year from 2013, however, it still shows financial stability in the next year. 

Summary

GameStop shows financial stability in the last five years and in the next year. 

In conclusion,

The company is liquid and has sufficient cash from operations and has free cash flows in the last five years. The balance sheet is sound and the company was able to generate net earnings in the last four years. Further, total executive compensation was fair, hence it represents only 6 percent of the net income. In addition, GME is spending contributions to the politicians but there were no lobbying expenses. Furthermore, the future score shows financial stability. The stock price of GME is overvalued.

CITATION

Morningstar: http://www.morningstar.com/stocks/XNYS/GME/quote.html

https://www.sec.gov/cgi-bin/browse-edgar?CIK=GME&owner=exclude&action=getcompany&Find=Search

OpenSecrets.org: https://www.opensecrets.org/orgs/summary.php?id=D000042102

Disclosure:

I/we have no position in any stock mentioned and have no plans to acquire any positions within 7 days of publication. I have written this article myself and expresses my own opinions. I am not receiving any compensation for it from the company mentioned above except for Totem Talk. I/we have no business relationship with the company that is being analyzed and mentioned in this article.

Researched and Written by Criselda

Twitter: criseldarome

 

First Solar Inc (FSLR) Extended Analysis

December 13th, 2016 Posted by Extended Analysis No Comment yet

Company Profile 

First SolarFirst Solar Inc is a provider of Photovoltaic (PV) energy solution. The company manufactures and sells solar panels, also, the company operates in two segments, components, and systems. First Solar Inc is the first company to produce 1GW in one year and also developed the world’s largest contracted solar project pipeline of 3GW. First Solar Inc was founded in 1999 as Solar Cells Inc by Harold McMaster, an inventor.  Further, the company’s initial public offering was in November 2006 under NASDAQ with company symbol FSLR. Headquartered in Tempe, Arizona U.S. As of December 31, 2015, the company has 6,350 number of employees.

First Solar Extended Graph Analysis

A. First Solar Cash Flows

Net Cash Provided by Operating Activities Net Cash Used for Investing Activities Net Cash Provided by Financing Activities Capital Expenditure Free Cash Flow
2011 -33,463,000 -676,457,000 571,218,000 -731,814,000 -765,277,000
2012 762,209,000 -383,732,000 -89,109,000 -379,228,000 382,981,000
2013 856,126,000 -537,106,000 101,164,000 -282,576,000 573,550,000
2014 680,989,000 -511,879,000 7,359,000 -257,549,000 423,440,000
2015 -360,919,000 -112,140,000 137,103,000 -166,438,000 -527,357,000
2016ttm -47,476,000 -229,338,000 495,435,000 -203,036,000 -250,512,000

Facts

  • Cash provided by operating activities was negative $47.5 and $361 million in 2016 ttm and 2015, respectively.
  • Cash used for investing activities was $229 million; purchases of investments at $639 million were used.
  • Cash provided by financing activities was $495 million; also debt issued of $146 million was used.
  • The capital expenditure was $203 million which is an investment in property, plant, and equipment.
  • Free cash flow was negative at $250 million in 2016.

Explanation

  • Negative operating cash flow was due to significant other working capital at $866 and $714 Million in 2015 and 2016 (ttm), respectively.
  • Sales, maturities of investments were credited at $353 million under cash from investing.
  • Debt repayment of $47 million was used cash from financing activities.
  • Free cash flow was negative in 2015 and 2016 due to negative operating cash flow.

Interpretation

The operating cash flow shows negative results in 2015 and 2016 due to a significant amount of project assets and deferred project cost. In addition, free cash flow was negative in the last two years due to the same reason. Moreover, the decrease in cash used in investing activities in 2015 was driven by the receipt of $239 million in IPO and lower purchases of property, plant, and equipment. Cash provided by financing activities has primarily resulted from $146 million proceeds from borrowings and $44.7 million proceeds from leaseback financing.

Summary

FSLR suffered negative cash from operating activities in the last two years due to increase in project assets and deferred project costs in which they finance the construction of certain projects using their working capital and increases the company’s trade accounts receivable.

Further, the company was able to make an investment in property, plant, and equipment; also the net cash at the end of the period increased by $225 million from the beginning. Furthermore, currency exchange rate fluctuations unfavorably impacted cash flows by $19.3 million in 2015.

B. First Solar Balance Sheet

fslrbs

Working Capital Total Current Assets Total Assets Total Current Liabilities Total Liabilities Total Equity Retained Earnings Total Debt
2011 1,639,537,000 2,613,261,000 5,777,614,000  973,724,000  2,133,751,000  3,643,863,000  1,626,071,000  663,647,000 
2012 1,730,950,000 2,832,324,000 6,348,692,000  1,101,374,000  2,743,166,000  3,605,526,000  1,529,733,000  562,572,000 
2013 2,204,703,000 3,792,764,000 6,883,502,000  1,588,061,000  2,380,385,000  4,503,117,000  1,882,771,000  223,323,000 
2014 2,189,350,000 3,190,446,000 6,724,439,000  1,001,096,000  1,696,952,000  5,027,487,000  2,279,689,000  216,921,000 
2015 2,384,786,000 3,345,586,000 7,316,331,000  960,800,000  1,767,844,000  5,548,487,000  2,790,11,000  289,415,000 

Facts

  • Working capital was $2.4 billion; also grew 45 percent in five years.
  • Total cash represents 25 percent of total assets.
  • Current assets were $3.3 billion; also represents 46 percent of total assets.
  • Total assets were $7.3 billion; also the total cash represents 25 percent.
  • Current liabilities was $961 million; also represent 54 percent of total liabilities.
  • Total liabilities is $1.8 billion; also represents 24 percent of total liabilities and stockholders’ equity.
  • Equity is $5.5 billion; also represents 76 percent of the total liabilities and stockholders’ equity.
  • Retained earnings are $2.8 billion; also net income of $546 million was added.
  • Total debt was $289 million; also represents 13 and 87 percent short-term and long-term debt, respectively.

Explanation

  • Current assets are two-third higher than current liabilities.
  • Total current liabilities grew 28 percent.
  • Total assets grew 27 percent in five years.
  • Current liabilities decrease 1.33 percent from 2011.
  • Total liabilities decrease 17 percent in five years.
  • Total equity grew 52 percent.
  • Retained earnings grew 72 percent.
  • Total debt decreased by 56 percent.

Interpretation

The balance sheet shows that the company is financially sound and stable in five years. In addition, the growth in assets, equity, and retained earnings is increasing year-over-year.

Summary

The company’s balance sheet is sound and shows financial stability in the last five years. In addition, total assets grew 27 percent and advancing year-over-year. Further, total equity and retained earnings are growing year-over-year. Furthermore, total debt has a considerable figure of 16 percent of total liabilities. FSLR is capable of meeting financial obligations.

C. First Solar Ratios

fslr-ratios

Net Margin (%) Return on Assets (%) Return on Equity (%) Asset Turnover (average) Financial Leverage (average) Debt to Equity (%)
2006 2.94 1.17 1.87 0.4 1.41 0.15
2007 31.42 16.24 20.99 0.52 1.25 0.06
2008 27.95 19.99 26.69 0.72 1.40 0.11
2009 30.98 23.43 30.73 0.76 1.26 0.06
2010 25.91 17.19 21.75 0.66 1.27 0.06
2011 -1.43 -0.78 -1.11 0.54 1.59 0.17
2012 -2.86 -1.59 -2.66 0.56 1.76 0.14
2013 10.67 5.34 8.71 0.5 1.53 0.04
2014 11.7 5.83 8.33 0.5 1.34 0.03
2015 15.27 7.78 10.33 0.51 1.32 0.05
2016ttm 14.72 6.63 8.86 0.45 1.36 0.03

Facts

  • Net margin was erratic; also grew 401 percent in 10 years.
  • Return on assets was erratic; also grew 467 percent in 10 years.
  • Return on equity is unpredictable; also grew 374 percent.
  • Asset turnover is stable, also averaged 0.56.
  • Financial leverage averaged 1.41.
  • Debt to equity is 0.03 percent of equity.

Explanation

  • Net margin in the last four years is increasing year-over-year; also averaged 13 percent.
  • Return on assets was 6.63; meaning it generates $0.66 net income for every dollar of assets.
  • Return on equity 8.86; also means for every dollar of equity the company earns $0.88 of net income.
  • Asset turnover is 0.45, also means each dollar of assets generates 0.45 cents of revenue.
  • Financial leverage is 1.36, the company has $1.36 in total assets for every dollar of equity.
  • Debt to equity ratio is 0.03; also debt was 3 percent against equity. the company is using 3 percent of debt against equity.

Interpretation

First Solar is considered profitable in the last four years.

Summary

The company is profitable and has a net margin of 15 percent in the last two years. In addition, the return on assets and equity are acceptable at 7 and 9 percent, respectively. And also, the company’s debt against equity represents only 3 percent.

D. First Solar Income and Market

fslr-inc1

Operating Income Sales, General and Administrative (SG&A) Net Income Market Capital
2011 -68,664,000 446,161,000 -39,493,000 2,919,000,000
2012 -37,563,000 288,751,000 -96,338,000 2,689,000,000
2013 368,529,000 273,029,000 353,038,000 5,437,000,000
2014 424,163,000 258,973,000 396,918,000 4,472,000,000
2015 516,664,000 272,010,000 546,421,000 6,716,000,000

Facts

  • Operating income was $517 million; grew 40 percent in the last three years.
  • Sales, general and administrative expenses were stable in the last four years, averaged $273 million.
  • Net income was $546 million; also grew 55 percent in three years.
  • Market capitalization was $6.7 billion; also grew 24 percent.

Explanation

  • Operating income is increasing year-over-year in the last three years.
  • Net sales for 2015 increased by 6% to $3.6 billion compared to $3.4 billion in 2014.
  • Net income averaged 15 percent in the last two years.
  • The market price on December 31, 2015, was $65.99 per share compared to $44.60 per share on December 31, 2014.
  • Today, December 8, 2016, the market price was $33.59 per share.

Interpretation

The company managed to generate sufficient revenue in the last three years and was able to provide a bottom line of 15 percent in two years.

Summary

The company is efficient in providing sufficient revenue for its business operation. In addition, the company derives its revenue from sales of solar module and solar power system. Further, market capitalization was increasing year-over-year, however, market price starts to fall on March 31, 2016, going forward. Furthermore, the price fell 49 percent from December 31, 2015, to current date December 8, 2016.

E. First Solar Key Executive Compensation

fslr-compensation

  2011 2012 2013 2014 2015
Net Income -39,493,000  -96,338,000  353,918,000  396,918,000  546,421,000 

Key Executive  Compensation     

Salary 317,885  1,339,615  2,365,962  2,667,490  2,901,980 
Bonus 696,089  725,000  100,500 
Annual Other Income
Restricted Stock Award 2,340,150  22,103,795  10,630,076  4,710,151  5,192,143 
Securities Options
LTIP Payout
Non-equity pay 1,524,770  2,271,911  2,572,298  3,945,500 
Other Compensation 135,564  30,560  60,927  52,000  67,818 
Total Exec Pay 3,489,688  25,273,740  15,429,376  10,001,939  12,107,441 
Percent vs Net Income -8.84%  -26.70%  4.37%  2.52%  2.22% 

Chief Executive Officer – James A. Hughes

2011 2012 2013 2014 2015
Salary 0 556,154 750,000 750,000 859,615
Bonus 0 425,000 0 0 0
Annual Other Income 0 0 0 0 0
Restricted Stock Award 0 35,012 2,000,011 2,000,011 2,000,004
Securities Options 0 0 0 0 0
LTIP Payout 0 0 0 0 0
Non-Equity Pay 0 739,770 1,015,725 1,015,725 1,657,500
Other Pay 0 11,423 10,400 10,400 10,600
Total 0 11,767,359 3,690,272 3,776,136 4,527,719
Percent vs total pay 0 45.75% 24.47% 37.75% 37.40%

Chief Financial Officer – Mark R. Widmar

2011 2012 2013 2014 2015
Salary 317,885 519,038 550,000 500,000 571,154
Bonus 696,089 0 0 0 0
Annual Other Income 0 0 0 0 0
Restricted Stock Award 2,340,150 7,019,568 900,020 800,028 873,044
Securities Option 0 0 0 0 0
LTIP Payout 0 0 0 0 0
Non-Equity Pay 0 550,000 490,050 485,100 715,000
Other Pay 135,564 10,832 11,100 10,400 10,600
Total 3,489,688 8,099,438 1,951,170 1,845,528 2,169,798
Percent vs total pay 100% 31.49% 12.65% 18.45% 17.92%

President U.S. – Georges J. Antoun

2011 2012 2013 2014 2015
Salary 0 264,423 550,000 550,000 571,154
Bonus 0 300,000 0 0 0
Annual Other Income 0 0 0 0 0
Restricted Stock Award 0 5,049,215 1,500,025 800,028 863,055
Securities Options 0 0 0 0 0
LTIP Payout 0 0 0 0 0
Non-Equity Pay 0 235,000 462,825 485,100 715,000
Other Pay 0 8,305 11,825 10,400 10,600
Total 0 5,856,943 2,524,430 1,845,528 2,159,809
Percent vs total pay 0 22.77% 16.36% 18.45% 17.84%

President International – Joseph G. Kishkill

2011 2012 2013 2014 2015
Salary o 115,385  400,000  447,692 
Bonus o 100,000 
Annual Other Income 0 0
Restricted Stock Award 5,230,008  610,052  738,009 
Securities Options o 0
LTIP Payout 0
Non- Equity Pay 0 86,486  274,400  429,000 
Other Pay 0 15,284  10,400  25,418 
Percent vs Total Pay 0 5,547,163  1,294,852  1,640,119 
 Total 35.95%  12.95%  13.55% 

Chief Technology Officer – Raffi Garabedian

2011 2012 2013 2014 2015
Salary 0 0 400,577 417,490 452,365
Bonus 0 0 500 0 0
Annual Other Income 0 0 0 0 0
Restricted Stock Award 0 0 1,000,008 500,032 718,031
Securities Option 0 0 0 0 0
LTIP Payout 0 0 0 0 0
Non-equity pay 0 0 304,425 311,973 429,000
Other Pay 0 0 10,831 10,400 10,600
Total 0 0 1,716,341 1,239,895 1,609,996
Percent vs total pay 0 0 11.12% 12.40% 13.30%
Sales, General and Administrative (SG&A) Expense 446,161,000 288,751,000 273,029,000 258,973,000 272,010,000
SG&A less Total Pay 442,671,312 263,477,260 257,599,624 248,971,061 259,902,559
Percent of Total Pay vs SG&A 0.78% 8.75% 5.65% 3.86% 4.45%

Facts

  • Total executive compensation was $12 million in 2015; also represents 2.2 percent of net income.
  • Chief executive officer, James A. Hughes received the total pay of $4.5 million in 2015; also represents 37.75 percent of total executive pay.
  • Chief financial officer, Mark R. Widmar received the total pay of $2.17 million; also represents 18 percent of the total executive pay.
  • President US, Georges J. Antoun received the total pay of $2.2 million; also represents 17.8 percent of total executive pay.
  • The President, International, Joseph G. Kishkill received the total pay of $1.6 million; also represents 14 percent of the total executive pay.
  • Chief Technology Officer, Raffi Garabedian received the total pay of $1.6 million; also represents 13 percent of the total executive pay.
  • Sales, General and Administrative (SG&A) was $272 million in 2015.
  • Total executive pay represents 4.5 percent of the sales, general and administrative expenses.
  • First Solar total reported lobbying expenditure is $280,000.00 in 2016.

Explanation

  • Total executive compensation is averaged 3 percent of net income.
  • Compensation of CEO decreased by 62 percent in four years; also a bonus is 3.61 percent of CEO’s total pay in 2012.
  • Compensation of CFO decreased by 38 percent in five years; also, pay rises 132 percent in 2012 then down by 75 percent in 2013.
  • The bonus of CFO is 20 percent of his total pay in 2011.
  • Total compensation is averaged 5 percent of sales, general and administrative expenses.

Interpretation

The executive compensation is fair at averaged 3 percent in the last three years. Moreover, the company has lobbying expenses year-over-year.

Summary

The executives received the highest pay in 2012 when the company incurred a net loss in its bottom line at -$96 million. In addition, FSLR is incurring a lobbying expenses year-over-year.

F. First Solar Annual Lobbying

fslr-annual-lobbying

Lobbying Expenses Net Income
2007 160,000 158,000,000
2008 360,000 348,000,000
2009 460,000 640,000,000
2010 720,000 664,000,000
2011 620,000 -39,493,000
2012 560,000 -96,338,000
2013 500,000 353,038,000
2014 545,000 396,918,000
2015 500,000 546,421,000
2016ttm 280,000 502,000,000

Facts

  • Lobbying expenses increased by 125 percent in 2008.
  • In 2009 lobbying expenses increased by 25 percent.
  • In 2010 lobbying expenses increased by 57 percent; the highest lobbying expense.
  • Lobbying expenses decreased by 14 percent in 2011.
  • The decrease of 10 percent in 2012.
  • It decreased by 11 percent in 2013.
  • In 2014 it was up by 9 percent.
  • Further, 2015 was down by 8 percent.
  • Shows a decrease of 44 percent in 2016.

Explanation

  • Lobbying expenses relating to 2016 issue was $125,000 for the 1st quarter report.
  • Another $125,000 lobbying expenses for the 2nd quarter report.
  • $30,000 lobbying expenses for the 1st quarter report.
  • Lobbying expenses represent 0.09 and 0.06 percent of net income in 2015 and 2016, respectively.

Interpretation

First Solar is spending lobby year-over-year to influence public officials to solve certain business issues. Lobbying activity may go up or down over time, depending on how much attention the federal government is giving their issues, according to OpenSecrets.org, Center for Responsive Politics.

Summary

In 2016, the lobbying activity and the specific lobbying issues were “Public Land Renewable Energy Development Act (Heller), and Maintaining access to public lands for solar development.” Further, lobbying activities were “Discussion of regulatory guidance on beginning of construction provision for renewal energy tax credits in the Consolidated Appropriations Act (HR 2029).” and “Master Limited Partnership Parity: advocating expanding master limited partnerships to include renewable energy projects.”

G. First Solar Financial Strength

2011 2012 2013 2014 2015 2016 2017 2018 2019
Score 2.4 2.02 3.41 3.87 5.07 6.31 7.84 9.75 12.13

Facts

  • The score is rising from 2012 to 2015.
  • In 2011 and 2012 score is a warning for insolvency.
  • In 2013 to 2015 the score is rising favorably above 3.0; also the company is far from insolvency.
  • The future score is rising using the average trend in 5 years.
  • The next three years shows stable financial strength.

Explanation

  • In 2012, the score drops 16 percent.
  • In 2013 the score was up 69 percent.
  • The score was up 13 percent in 2014.
  • The score was up 31 percent in 2015.
  • It was up 24 percent in 2016, 2017 and 2018.

Interpretation

The financial strength of the company shows stability in the last three years. The company’s future strength shows financial stability based on the 5 years trend.

Summary

The 2011 and 2012 score shows a warning for insolvency with the score below 3.0. However, the company’s financial has improved favorably in 2013 and going forward. There is no possibility of insolvency in the next three years of business operation.

In conclusion

The net cash provided by operating activities was negative in the last two years due to project assets and deferred project costs. First Solar has a sound balance sheet in the last five years. Further, its net income is averaging 13 percent in the last three years, however, the company suffered a negative bottom line in 2011 and 2012 at 1.48 and 2.86 percent, respectively. Furthermore, net margins have a growth of over 400 percent in ten years. Although, return on investment and in assets are unpredictable, the company was able to provide acceptable returns.

Further, the executive pay was fair at 3 percent of net income. FSLR is incurring lobbying expenses year-over-year. The company has business issues and concern that they are influencing government sector to solve their business issues.

Furthermore, the financial strength of the company shows stability in the next three years. The stock of First Solar is best for a Buy position.

CITATION:

https://www.opensecrets.org/lobby/clientsum.php?id=D000033692&year=2016

https://www.sec.gov/cgi-bin/browse-edgar?CIK=FSLR&owner=exclude&action=getcompany&Find=Search

Disclosure:  

I/we have no position in any stock mentioned and have no plans to acquire any positions within 7 days of publication. I have written this article myself and expresses my own opinions. I am not receiving any compensation for it from the company mentioned above except for Totem Talk. I/we have no business relationship with the company that is being analyzed and mentioned in this article.

Researched and Written by Criselda

Twitter: criseldarome