Tuesday, December 31, 2013

Trade - Buy

I added a new position. Ensco PLC (ESV)

22 shares @ $56.25 on 12-27-2013

This will increase my forward 12-month dividend  by $66.00 to a total of $1,116.20

I updated my Portfolio to reflect the changes.



Based on the 15 year chart you can see that ESV is undervalue. Also notice the debt/cap which is at 27%.



Here is a 4 year graph which shows that it is undervalue based on earnings.


Here you can see that the payout ratio for last year was 27% which is really good so there is a lot of room for dividend increases. 



Here you see that 36 analysts predict a 5 year estimated return of 36.4%



Here you see that the dividend yield is at the highest right now. This tells us that the price is under value.






Morningstar (4 star out of 5) Fair value of $70.00
Yahoo Finance Target of $63.22
Marketwatch Target of $63.09


Done any shopping lately? What do you think of ESV?


6 comments:

  1. Thank you for the article!
    Until now, I never heard from this company.
    I have to take a look...

    Best regards!
    D-S

    ReplyDelete
    Replies
    1. You're welcome. ESV looks like a great company and great growth.

      Delete
  2. ESV - All I can say is that it had one heck of a dividend bump this year! Its great little investment as I can tell. I am concerned about how many leases are ending for this company. You never want your rigs idled. It looks like this is already factored into the share price though.

    It has a $63.22 price target by Dec 2014 with a 5.3% yield. A 16.8% return next year not bad at all. I will have to do more research! Thanks for bringing this company to my attention.

    ReplyDelete
    Replies
    1. you're welcome jdavis. the yield is great and it looks like they have a lot of room to grow the dividends.

      Delete
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    ReplyDelete