Subscriber Request Stock - Thousand Foot Overview Lam Research (LRCX), Roper Technologies (ROP)
Hello. Everyone, and thanks for tuning into the financial, investor channel my name is Brent and today we're going to be doing a quick video going over to stocks that were suggested, to me by a viewer and subscriber here, at the financial investor channel we're gonna be taking a look at lam research - custom ticker symbol, l RC X and, also. Roper, Technologies, ticker, symbol ROP. Now I'm not very familiar with these socks so we're gonna be doing a thousand-foot. Overhead, looking, down at their financial, metrics they're also dividend, paying stocks so, we're gonna use dividend, com to see how long they've had dividend, growth how many years what's, their payout ratio when do they pay out how much do they pay out also, we can go take a look at Yahoo Finance, over the last four quarters had they beat, expectations, beat. Their earnings, and, I've. Added a couple different financial metrics in here I was talking back and forth with a member of my Facebook, group over, three metrics he, would use to evaluate a business I said, you know I like to look at growing revenue the income price the sales his. Three, were ROI C which is return on initial. Invested. Capital and. Cash. Conversion cycle and, I'll, explain these here in just a minute I didn't know them myself before I kind of read into them just a little bit more and I would like to use them kind of going forward they do look like a really good financial, metrics to use so, return on invested capital as, it sounds it's the, definition is basically return. On investment capital is a calculation. Used to assess a company's, efficiency. At allocating, the capital, owner is controlled to profitable, investments. So, basically. How well does that company use the capital that it's given, in order. To generate money. So. If, we take a quick look at Apple, for example and, we go back at the. 10-year, mark if we look at where, did their iPhone get released that it was back in maybe. 2008. So you can see here they were coming down for quite a while you, know they were down down down maybe they really something here during this time I'm not sure if that was the iPad what, products, or services they had during this time but they rode, your, return. On investment between. 1998. And 2000, was very high then, we had that crash in 2008. Kind, of you. Know it came back to a value, buy and they had came down for quite a while then, they, began, working on some new products they put out the new iPhone, and they, have just begun to go crazy during that time you, can see here that they've kind of you. Know this is still great returns so this is per year, not this. Isn't the performance, of it this is just if you look at a specific, year what would your return of capital be in 2010. It would be right around 25%. Of your you, know and you're invested money currently. For the current year in 2018. You're looking at it your return on invested capital of, around. 21.6%. And. If you'll take a look at some of these other value stocks ADP. 29.6. Procter. And Gamble in the 11.3 so this is a little bit slower grower you know. Not as fast, as say a Procter & Gamble if you look at Nvidia this one's going to be you, know 43%, so it's basically double, right now of what Apple, and that's pretty you, know the videos keep working on their graphics cards improving those a whole crypto, phase last year, so.
That's. A pretty good estimate to just see whether that company can. Turn your money into more money and how fast they can do it like what is its invested, capital rate, and, then, we have the cash conversion cycle here. This is just how, many days does it take them to take, their, resources, and, convert it into cash, flows so, here for example they. Said that the cash conversion cycle attempts, to measure the amount of time each net input dollar, is tied, up in production, and sales process, we've got seer in the sales process before, it is converted, into cash through sales to customers so. Taking. Their, assets. And their. You. Know their input to here taking, their converted, resources, how, many days does it take for them to actually make it profitable, from. Their sales to the customer so, here again we'll go back and take a look at you, know whatever. Your product Procter and Gamble has a number, of Prada. Out there you can see that it takes them actually negative nineteen point nine five, days, so. They're able to make a conversion, very quickly actually, beating. Positive. Numbers you don't you want to see negative numbers here this, is just you want the, more days that it takes them to convert their. Resources, over into cash flow that is just, you know wasted time here. ADP. Doesn't. Even show up on the chart Apple. Is. Negative, thirty nine days so they're, actually just chumming out money left and right with. What they're given and, the. Video here. It takes them fifty days you know maybe they make a product it's, it's on someone shelf for, a while and it, doesn't get quickly. Turned, you, know into a customer, sale. So. Those are our two financial. Metrics we're going to be using kind. Of going forward, and. Hopefully I didn't take too much time hopefully there's a new to you as financial. Metrics and maybe you guys can take a look at them as well and begin, using them in your screening. Process, so, let's. Go ahead and look at our two stocks I know we're, already five minutes into this of course if you are brand new to the channel hit the subscribe button otherwise, if you are a reoccurring. Viewer, and subscriber thank, you guys for watching I really appreciate, it so. Lam. Research, so let's take a look at very first thing I like to take a look at myself is price, earnings ratio currently and where it's going in the future so, here currently at sixteen point four in the future is expected, to grow in their earnings if we bring in Yahoo. Finance over the last four quarters this company has beat, expectations. On their earnings and over, the last two quarters alone since they've done the tax reform this company is not only beat earnings, but, have basically, doubled and tripled over. Their, expectation. So going, forward you can see that's why that big difference there they're going to be dropping from a 16 point for current.
Price In comparison to their earnings to a 10 where. The currently price they actually came down off their highs here if we bring in their price here they came down off, these highs they were high, at two hundred and some, amount of dollars they actually drops recently, back down to this one hundred and $69, point. And this, seems to be their support level here looks like they fell back during, that Debbie worried March pull back as well back down to this time frame so this could be a grid buying opportunity, come, we'll take a look at that here in just a minute more, so p/e ratio, that's good at the pass next. I like to take a look at what are they currently price, war is their dividend yield is the yield, currently above their current. It's. Their. Trailing, you'll trailing yield for the year so this looks like if, you were to buy the stock right now you would get a. What. Looks like a 1.5. 1%. Yield on paper here but, if we bring in their dividend it says that they're paying a dollar ten you won't multiply, that by four that's four dollars and 40 cents so, their new payout ratio is. Two, two. Point six percent so. If you go here towards the bottom looks, like they just increase, their dividend so, they, doubled. They, increase our dividend pale by. 55%. It. Looks like they. Went from paying, you off 50, cents per share to, a dollar and, ten. Cents per share that's a huge, increase. There and that's, why this dividend, here of 1.5 one is actually, way off their, current dividend yield is that a 2.6, percent. That. Would be way up here off the charts just, way above any previous. Yield. That, you could buy this stock at right now, now. Is their. Price currently above or below their, 200-day, moving average, they, are currently priced below, their 200-day, moving average, you can see here let's go back and just look at just the one year we, can see here that for the most part this stock was trading way. Above their 200-day, moving average, is pretty consistent, over the, last three. Years there. Have only been several. Times here when the stock actually traded, up below. Their, 200-day. Moving average. This, is one of those rare opportunities if, you, bought into the stock here back in February, or March they. Quickly rebounded. Back into their highs and, maybe. I don't know what caused the stock this would be something definitely to research ask you what caused the stock to drop from, over 200, in some amount of dollars all the way back down to its current price of a hundred and sixty nine dollars and 26, cents they, just basically. Increased. Their dividend, payout by 50 percent they. Have a, good, going forward PACs to earnings ratio I would, probably take a look at over the last quarter of what did they really you know what do they tell their shareholders, it's gonna happen in the future. Quarters. Did. They lower expectations. Or something, okay. So they're PE their price and the 200-day moving average, looks very healthy their dividend yield has shot up to record highs right now now. What. Is their, revenue, net income and free cash flow over the last ten years you. Can see that this company is in the billions many, of the companies that I've looked at here their revenues, generally, in the billions but their free cash flow and net income is usually, sitting in those millions so, here if we bring in our data, format changes a percentage wise over, the last ten years this. Company, has grown in free cash flow by, two point, three nine thousand. Percent this, company's, revenue, has increased by multiply. Divide this by ten percent, you're looking, at a ninety, three point five percent year-over-year, increase. In, their revenue you're, looking at nearly a forty, percent increase, in their net income year over a year over, the last ten years now, this. Could kind of begin to balance out and kind of not. Go down but, kind of just kind of simmer down but this is a semiconductor, equipment, in the trio's company that's huge, right now you, know voice, chips being put into new phones alexa. Iphones.
Won A whole, bunch of devices you're gonna be able to talk to you in the future you. Know maybe your car unlocking, your car maybe it's voice recognition who, knows what's out there and available, with semiconductor. Technology, so, revenue, free cash flow net income that'll pass their price is currently trading below the 200-day moving average, that past what. Is their price the book what's the price of sales, and. Let's. Take a look at these back, to regular data format so if you were to buy the stock right now let's. Just go back over the last three years so, lamb, research, they had came up very quickly you can see that, they. Only trade here on par so, let's see what's the other metric, let's bring on their PE no that's not the one I feel. Like I'm missing something okay, let's bring on their price okay, so. Just. Know that don't work out for me okay so this stock here, normally. Trades with, the, price. Of sales you, know trading, above that price, and. The. Price the book it's usually the line, on top here but, there was a bit of a you know change here during. 2017. Where, their price in comparison to their sales had, actually came down so, you're buying it at a very you know if this stock had continued, to kind of continue to go with that price you, would. Have seen the, price shoe much higher in comparison to their sales but, their sales may be increasing, year-over-year. Where, their price has, been a little bit stale looks like, since. 2017. End of 2017, it really hasn't done much so, their price has just continued. Their. Sales have to continue to grow quarter. After quarter after quarter whereas, their price has been trending, sideways so. That's why this price of sales has came down it's, not climbing, with the price and instead has, fell. Down as their sales has increased, and their price had States flat, now. They're priced the book value again. Did the very same thing that price the book value was, you, know trailing, right along with their price, but, there was a trend you know transition, here where their price did come down they. Went from nearly. A, you. Know six, price. The book value down. To a four so, this, is currently near or below a. 3.0. For, their price the book and price of sales so that's pretty you know value buying opportunity. I would, consider a value by an opportunity. Now. Let's. See what is the, next one's to take a look at so let's go ahead and bring in these two new ones here so, if you were to invest your capital into. Lamb. Research, and that's it. Lamb. Research. What. Would your invested, capital beat you would be looking at a nineteen, point three seven so this beats that ten percent expectation. And, we can see what's the history of it over the last 10 years well. The history of it is, pretty. Healthy if we bring in so, this. Has pretty, much consistently, stayed, above, the. 10%. Let's. Just look at five years so, here as of 2000. You, know 15 basically, this, has consistently, has consistently, stayed above that 10% line, our semiconductors. Gonna be going anywhere not so much there are other companies that do produce semiconductors. I would, want to know who. Do they produce and, supply to, you. Know how how. Strong is that bond with whatever company, that they're selling that product to but. If we take a look at other companies here let's do comparison, really quick over the last five years you'll see that this one average or above that ten and Curly, not out of nineteen point three seven if we take a look at ATP you.
Know This is kind of sporadic, it is kind of going up slightly and slowly and. It is way above that 10% you can see here it stays positively. Over the ten percent year-over-year, Procter. & Gamble you know it does dip below here and then kind of above and then kind of below or, you know above still the. Video oh it's. Always traded, above that ten percent there sorry. Healthier there Apple. And. This, one's gone on for a long time above that ten percent line. Only. Time, here was that. Huh. 98 crash I'm, not sure maybe they just had no product services maybe that's when they had that tube computer they're trying to sell the people and nobody was buying and, they're like hey what else can we do so Apple they're okay. Looking, back at our five-year so. Overall. It does beat that ten percent rule and kind of going forward I don't see this one dropping down anytime soon so you're gonna look at a ten percent invested a return. On your investment, capital over, the next few years, cash, conversion, cycle how, many days is it take them to convert your. Cash into, cash flow from the users. This. Says a hundred and thirty-four days so. If they do semiconductors. Maybe some of their materials you. Know it waits on the shelves for a while get ships to, whoever is buying them and put it into their devices and then, that company. Doesn't. Pay them until maybe they sell some of their devices, or so I'm, not sure, they're. Very you know I'm not sure why that one's a little bit high, but. Again I haven't used these ones very often this is actually my first time using this one so seeing a high number of 134, whereas. If I look at ATP has, nothing. Procter. & Gamble has a negative 19, Nvidia, has a 50. And Apple. Has a negative. 39 so. Let's take a look at some of their comparables. Real quick so in order to get comparables. Lrc. CX. I like to jump over to CC NECC. CNNMoney. And, just type in their ticker symbols so LRC, X and. That's going to get me the symbols and then, here on the page towards the bottom right you're gonna see who, are some of their competitors we. Have a di ke, y OC y MC h p and s, w KS so I'm gonna take micron, technology that's, a pretty popular semiconductor. Company we'll, go ahead and use them as a comparable. MC. HP em, CHP, okay, let's take a look at microns. Cash. Conversion cycle this is a hundred and twenty seven days lamb research that's a hundred and thirty four day so it's that's, pretty spot-on for those semiconductor. Stocks mu, I believe in another semiconductor. Stock micron, technologies, seventy. Six maybe LC here. Yes. Mi conductor so this one's out of seventy six days so, it's. Pretty normal to see those companies up there in those numbers if, we take a look at let's. Do some other comparables, here with micron technologies. Over the last ten years has. This company, been. Performing, you, know it's in the triple digits mu. Is in, those triple digits but, if you look at our our. LRC. X triple. Digits but much higher so. I would want to know who are they supplying but overall this company looks very nice so, I'm gonna go ahead and leave, that there. For now like the pie, charts portion now, moving over to dividend comm looking. At. RCX, that lamb research corporation, again. We already know that there are semiconductor. Equipment of material they, have, been only paying out dividends for the last three years which is when they begin paying out dividends so they, don't have a whole lot of history here, they've, started paying out dividends in 2014. They. Did. See. Here okay, they did raise a year over here for the last three years you can see here they recently increased, their dividend from 50, cents, to a, dollar ten, that's a more than a 50% increase there we, can actually do the math real quick let's take the current one which is, bust. Out my handy dandy calculator $1, 10 minus, 0.5, divided. It by 0.5 multiply. It by 100 and you're looking at a hundred and twenty percent. One. Hundred and. Twenty percent. Difference. From. 50 cent payout to a hundred, and a dollar ten pail so, that's a huge difference Starbucks, you know JP. Morgan they increase their dividend by 30 percent or more this. One increase their dividend by over a hundred percent. So. What. Else payout ratio very healthy even if it lost half their earnings so it'd still be at a payout ratio, of under, a hundred percent this.
Thought Pays out. Every. They. Pay out every three. Six, ten one, three six and ten so, this one's a little bit odd sometimes, you see three six 10 or 3 6 9 and 12, this, one is a 1 3, 6 10 1, 3, 6 10 so. Here it's like every three months and then every two months or, every four months so it's kind of an odd one and, here we can see their ex dividends, are three, six nine twelve okay that's that's normal, okay so three six nine twelve is, their ex dividend, and their, payout is. It's. Here. Okay. It's usually same month besides, this, January. One during one one is usually pushed off just a little bit so, it's usually about a month before you get paid out but, who cares if you're buying it for the long term, you're. Just getting paid out that dividend and they did some healthy dividend increases, here from 45, to 50, to $1.00 ten okay. So, that is that stock does that look like a great bond opportunity, again going, Ford p/e is expected, to fall, you. Know continue to fall their last four quarters have been profitable not, only just beating expectations, but, really, doubling, or tripling, expectations. They're also. They, are currently trading with a dividend yield over their. Price, you. Know if we take a look at what's, here let's bring and Yahoo Finance, go to statistics take. A look at the trailing. Yield. You, look at their trailing, annual, yield at a 1.08. You're buying the stock right now at a two point. Six percent dividend. Yield you're getting a yield, on cost of two. Point, six percent which is higher than it's ever been and what, you'll probably get again, in the future. They're. Expected, to fall or climb, what. Is their, expected. Price here in a year two, hundred and sixty dollars and 33 cents and they're currently priced at 169. So they're expected, to climb by, quite a bit going forward. What. Else can we take a look at we could look at their financials, but I'm pretty sure their balance sheets gonna be, see. Here let's see going back change. It I will leave it annual so here this. Is in, thousands. So own number on thousands. We. Can see just year-over-year increasing. And their revenue, do. They have any debt. I. Think it's on the next, balance. Sheet okay, so here we have their cash cash equivalents, in this, portion here so, here over here. So. They may have made some purchases or, something, here in 2016, which. Is what caused our cash and cash equivalents, to kind of drop there a little bit see. If we can find. Liabilities. Okay so they. Made some huge purchases, they. Had some short. And long-term debt, here that was pretty high so, maybe what they did here is they use, some of their. Cash, and cash equivalents, in order. To pay off some of their debt. Any. Kind of going forward you can see it dropped back down to a normal healthcare. Level. So. It's the long-term liability. Not to you there, long-term debt you, know you can see their long-term debt has gone. Down it was pretty high back in 2016, but, they did use a lot of their cash or cash equivalent, in order. To pay down that long-term, debt which really helped them out and. Now here you can see that there are total liabilities, it's. Still a little bit higher but not as high as back in 2016, so I expect 2017. To maybe that number to drop as well and, here we can see their net tangible, assets, you're over here very nice, healthy increase, there you. Know two point six to two point nine two then three point nine to, five you know five that. Is a thousands. Millions, billions so Amman we talked about this earlier they were in that billions bracket, which. You know most of the companies that I look at have. Only. Net. Income and free cash flow in the millions this one's in the billions, so. Healthy-looking. Financials. There okay, so let's move on to our second, stock we're going to be covering we're, already at twenty three minutes I didn't want to make this too long but it is looking a little bit longer. Longer. Style, video okay, so again, going back what do we like to look at first Peter ratio, and for PE currently. Trading at a p/e ratio of twenty seven point nine nine. Let's. Bring in before, we go a little bit further let's just bring in I'm just gonna go ahead and get rid of these other ones I'm gonna go ahead and bring in some of their competitors so ROP. Who, are some of their competitors, so, that ROP. This is something I like to do okay. That one didn't pop up at all okay. Wonderful. Is. This. A its, ear ringing. This. Is a it. Looks like it should be a u.s. traded company, not. Sure there goes I'm not sure why that wasn't showing up before okay. Okay. I think I just clicked on profile to click OK back to quote who are their competitors we have just a few here, let's. Go ahead and move this window over that, way I can copy in my, competitors, so. We have F TV, we.
Have EMR. We. Have M ksi. And ESC so, let's. Take a look, some of these I try not to make this video too long but. 27, onto 24 so, that is our, what. Does this company do so. ROP. Let's jump over to dividend, comm this is industrial, equipment. And components so. If I move down here towards the bottom sometimes they'll give me a little bit of the company description, so, they, design, manufacture. And distribute energy systems, and control scientific and industrial, imaging products with software, industrial. And technology, products and radiofrequency products. And services it, operates in four segments, so industrial, technology, energy systems, and control scientific, and industrial. Imaging and RF. Technology so. It primarily, in. United States Europe so it's it's not only national, its international, plus it has four segments, so look it's, a pretty well-known, company, and right, off the bat I can see 19, years of kindig-it, and growth that's pretty nice okay now let's. Look at their competitors so 2724. 2421. 2421. 13. 11, and. 22. And 20 so, this. One here M ksi. This one is trading, a bit you know it's a little bit better. Price, to earnings. But. Take. A look just, keep, comparing. Here okay, so price, and p/e, ratio and all of these are expected. It. Was the fall so, going to going forward they're, expected, to fall here kind of going forward okay, except, for this one yeah. This one's expected to climb I'm, just gonna go ahead and get rid of that okay. So next, I, like. To look at revenue net income free cash flow over the last ten years taking. A look at how it has grown year, over a year so, revenues, increased by ten percent year over year free. Net income up twenty four percent you're over here free cash flow up seventeen, percent year over a year how, are their competitors, you can see very sluggish in comparison, their. Revenue, only at point zero nine percent, year, over year their. Net. Income is at a point, zero one you know much much, you, know divide, these numbers by 10 that's gonna give you a year-over-year results. So point zero nine, Oh point. One nine point. Two zero two. Point okay, one point nine zero and, two point zero nine so much lower growth. There, again. This companies and the negative numbers that's why you, know it's not doing so well this, one's actually pretty good comparable, I'm gonna go ahead and knock out these other ones and you know compare ROP, to this company. MKS. I. Just. Want to check. Real quick to. Make sure MKS. I I. Just. Want to make sure it's in the same industry, as well industrial, equipment and components diverse sir yeah machinery, industrial, okay so. Yeah. It looks about the same thing worldwide company as well okay, so, that's a pretty good comparison right there I'm gonna go ahead and continue to compare it against that it. Doesn't have quite the, you. Know growth. Here. So. Good numbers I'm just gonna go ahead and just you know those are good numbers okay, so revenue free cash flow net income that old passes, there take a look at their price, and dividend. Yield for, the year where, is this one at right now going back to our regular data format this, stock Roper, technologies, you're getting it at around eight point five seven point six zero percent, dividend yield at this current price it. Has been trending sideways, for. How. Long, you. Know not. Too long looks like January, it did kind of come off those highs. But. It quickly recovered, it did kind of fall again and marg quickly, recovered, has, kind of trailed down let's go and also bring in and see what are we looking at their, earnings okay, those. Last four quarters, they, have beat and you, know exceeded, their earnings. Estimates. So, that's good there. So. This, one here, the other one was also trading price under yield. See. What was I wanting, to do what are they currently paying up for share so. This one increased their dividend from thirty five cents to forty, one cents and twenty five basically. You know a quarter of our sent there. They. May pay out, one. Two three, they may pay out one, more time at. This 41 cent dollar or this 41 point and then they may increase it again that's what they kind of do these, sort of companies that have been paying out this dividend, growth and continue dividends from back in 1989.
They, Like to increase their. Dividends. Year over here this one looks like it normally pays out four. Times and then it increases it in the fifth time so, I could probably see that kind of going forward that this is what you know that's what this company would do. No. Guarantees. Okay. How, to text let's see here so back to price, and, yield. Okay. Get rid of that yield bring in our 200-day moving average. This. Stock is trading. Above its, today, moving average so not as great, of a value, buy right now you can see that there are buying, opportunities, here you can see back in 2016. There, it was trading, below its 200-day moving average, but for the most part it does trade, not. Only above, its 200-day moving average, but, quite, a bit above its 200-day, moving average, sometimes, by. A you. Know pretty good percent there so I did came back it did come back recently. And touch that line and I'm not quite how would I consider that touching but, those. Would have been really good entry points for a stock that's normally trading above its 200-day moving average, let's take a look at MKS. Let's. Bring in its yield as well as take just look at the same information this. One came. Really, off its highs you can see here this one was at a hundred and twenty plus dollars, whereas. This one has been more training sideways, for the most part. Dividend. Yields right around that same okay and their 200-day moving average. This. One is currently trading below its 200-day moving average, history, of it for. The most part it likes to trade above its 200-day moving average, but this one doesn't clicking goodbye an opportunity but, we're just kind of looking at ROP, right now you, can still look at MKS I as well so. Let's, see here what is next. Got price we got 208, and it's trading that above that 200-day. Okay. Now I like to look at price to book prices, sales and, price, so. Where, does it like to trade out well this one is very crazy okay, so. Price, you, can see that the price, to, book. You. Know it split off here so what happened, there. Book, value okay, so if they're Book value has. Remained, the same but their price has climbed, that. Could mean that they're taking in more and see here they're. Taking them much more assets, in their book value is growing, much, faster than, their price is growing so, instead, of their price continuing. To grow with or. Their price to book value, continuing. To grow with their price of the stock, it has stalled, because their value their, book value has, grown, faster, than their price of the stock has grown in that timeframe you, can see here though that their price the sales. It. Has, continued. To climb, so, this, one has been this. Was pretty you know pretty normal for this metric here so let's take a look at. So. Its client, but again it's been kind of flattening out here and staying, around that six so. The price in comparison to their sales, so. If their sales are going up and their price is going up you would see that number start to decrease as we, had saw in the previous example with that their. Price that states flat but they were increasing. Their their, you know their their margins, quarter, after quarter and that was causing their prices sales ratio to drop, here this is the one we looked at so their. Earnings, and their their sales, are climbing. Crazy but their price has. Stayed mainly flat so that's we like to look for that's, that's, good okay. So. This, is a little bit high at a 6.0, but, if we compared it compare, it to its competitor, okay so, its competitor, here has, actually, a price to book value of 3.0. And, 2.6, for its sales, this, actually looks like a better buying opportunity, just kind of looking, at you know the overhead, its.
Its. 200-day, moving average, it's it's actually below its 200-day moving average, whereas rope Roper, technologies, is slightly. Over 200 day moving average. This. One does have a little bit higher revenue. Free cash flow, income growth over the last 10 years and, their. Price the book price of sales is a healthier. Looking numbers and their, price has came down below that 200 a moving average okay. Now. Let's compare these ones for a return on capital here. We're looking at a return on capital. For. The you know the head came down quite a bit you can see here that it's not really consistent this, company, you. Know for time. It. Was trading. Or kind of keeping above your return on capital. What, hover between a 7.2, and, a. Say, 9. Some. Percent, return. On investment, capital so. 7 to 9 here, MKS. After. That mini, crash here 2008. They, did fall, where, your investment what. Happened to their price. Okay. So not. Sure what happened here maybe people. Stopped buying you know this is a an industrial, company so maybe during, hard times people, don't buy as many you, know sets of equipment and growing their facilities. So. People stopped buying. This one so you're a turn on investment, really dipped there into, the negative but, after, that recovery, that, kind of bumped back up and, has. Continued. To sort, of be above. This. One's at that 6. - now, it's at a 19-point - wait so maybe they've, recently changed, it up they're looking at a more profitable business. I'm. Not sure which one of those are. Actually, here. To that. Price 18. Points eight point. Six five and nineteen. Point two wait that would be your return on investment capital. Off. Okay. Okay. We're doing a comparison between these two see, I lost track of where I was okay let's. Move on the cash conversion, cycle I. Really. Need to read. A little bit more up on these on, how, to use them better this is my first day you, know I kind of went back and forth with him, yesterday, and, I'd, read, about them I need to go out there and you know read. A little bit more watch, a couple videos on, how.
To Use these to the best extent that they can be used but. We, can still use them for comparisons, between two like. Companies. So, rope technologies, we're looking at a 71, day conversion, between. Their, let's. Go back to their classroom, between. Their converted, resource inputs into cash flow so the, amount of time in days that, you would need to have your dollars tied up in production, and they, would need to have their. Money tied up in production, developing. These products, before a sale, process occurs. And. So it's 71 days for, them MK, SI 130. 138. Days so you, know basically double, here for MK si. So. That is basically, yeah, let's take a look here at their. Dividend. Or, Theor dividend. Comm information. MK. Okay. This is MK si I'm not looking at that one I'm looking at rope okay. Again. This one has paid out dividends, for 19 years not only paid out dividends but I've continued, to raise their dividend here over here their payout ratio is at a very healthy. Fourteen, point seven percent which is one of the lowest payout ratios I have seen on, just, about every, dividend stock but again their dividend yield is only at a point six so they have quite. A bit of room to grow they're actually below the industrial. Goods average, at a 1.15. We. Can see here that they don't have much of a history oh they do have okay that's right they've been trading out dividends for quite a while so. So. Nineteen years so, they do have a pretty healthy. Dividend. Track record here they, did a stock split back way back when in 2005. Where you would get you for every one that you had. So. This is just sort of a consistent grower, this one let's take a look at spots off the handy dandy calculator. 0.4. One to five minus, 0.35, divided. By 0.35. Multiply, it by 100 you're, looking at an average increase in dividend, of around. 17. Percent there, seventeen point eight five and, see. 30 point, three five - point three zero. / 0.3, 0. K. So, it looks like they increase, their dividend about, 15, or 16, 17. Percent year-over-year, and. They've, consistently. You. Know they've done that for the last couple years and they have grown it over the last 19, years so if you're looking at a pretty good long-term buy and hold with. Consistent, dividend payouts you're not gonna get a huge dividend, yield. You. Know the l r. Lr. CX is gonna give you much better dividend. A yield, on cost right now this. Is actually trading, below its. I. Had. Said earlier that, it's. Actually trading, above. Oh no it is it is uh it, is below their their, current yield this yields, like way up here right now, and. They're. Expected to fall so over, all of. These, two companies I think they are both great looking companies, they've all passed the.
Financial. Metrics overhead, they, okay so starting, at the beginning they've, all have, great, p/e ratios, in. Comparison, to some of their competitors moving. Forward their price to earnings is, expected, to fall meaning their earnings expected, to increase, their. Net. Income revenue, free, cash flow over the last 10 years have not only been in double digits but triple, digits so. Very healthy, here over year growth there, their. Price and yield. They're currently both, trading. Below. They're. Currently. Below the average for. Your yield on costs, you're getting these at a good, price in comparison to their yield, for. The year and in the history you can see here lamb research for example increase, their dividend by a hundred and ten percent so. You can see that their price going forward we, can take a look here at rope, rough, what's, there when your estimate for Rock. It's. At three, hundred and twelve so this is two hundred and seventy six so, this is like a $40, difference, whereas if you're looking at lamb, research, their. Future expectations let's. Bring in this one here go back to summary you're, looking at 260 they're currently at 160, that's a hundred dollar spread right there so, much. They're, expected, in the, future, this. One's gonna, be turn around quite a bit I would, say that lamb research does like to look like the better short term buy, for the next year. To five years if you're looking and you're also, getting a great yield on cost nearly a three percent so, for every, hundred. Dollars that you're invested into this company you're getting three if you're investing a thousand. You're getting thirty, dollars back for here and if. You just continue to reinvest, those dividends it'll just build up so. Going. Back we, left it off a p/e also. Their price the book price to sale price the sales look really healthy, dividend. Growth looked healthy, there. Lamb. Research, was, trading. Was. The trading above or below okay. It was below its 200-day moving average. And. Rope. Was not trading, above its 200-day moving average, m'kay, I looked, actually like, a better deal of comparison, to ROP. But. Man. We are 41, minutes okay. That. Is it I am, done if. You did like this video remember to Like comment, and subscribe. Again. This is a recommendation, I may have taken way, too long and went, over all sorts, of unnecessary. Information, but. Again, as a finance glamour I am NOT a financial advisor or tax professional, the information provided is my opinion for entertainment, and fun this, is not investment, advice this is just me as a financial, investor myself, trying to help others make their money work for them this is a suggestion, by, you guys, the subscribers. And viewers, so if you do have any other ones you guys would like to check out hopefully, not, anywhere, near as long and as, off. Off. Topic as this one has been so, thank you guys for tuning in I will see you next time have a great day bye.