Hello Friends! Thanks so much for stopping by and checking on this site. I never know really who you guys are but I get a click on the counter here so even though you are tip-toeing through...I know somebody has been visiting! Thank goodness....I feel like I should leave milk and cookies...kind of like you guys came down the chimney sort of Santa Claus style! :)
Our last post was a bit pricey but I think this one might be a better value...see what you think! Computer Sciences Corporation (CSC) "...provides information technology services through outsourcing (Operating a customer's technology infrastructure), systems integration (designing, developing & implementing information systems) and IT and management consulting services" according to Money.cnn.com. As I write, CSC is trading at $43.80 up $1.95 or 4.66% on the day. I guess if you get a portion of a $3.35 billion contract from the United Kingdom to assist with their nationalized health service...well that just might be worth a nice bump in the stock price!
Looking through Yahoo.com for the latest earnings report, I found a story released on November 11, 2003, from PRNewswire-First call where their second quarter results were reported. For the quarter ended October 3, 2003, revenues were $3.59 billion, a 32% increase over 2002, net income was $108.1 million compared to $92.9 million last year, and on a diluted earnings per share basis: $.57/share in 2003, vs $.54/share in 2002.
Morningstar.com shows revenue growth from $8.1 billion in 1999, $9.4 billion in 2000, $10.5 billion in 2001, $11.4 billion in 2002, $11.3 billion in 2003 (the hiccup), and $13.019 billion in the trailing twelve months. With the recent leap in revenue in the latest quarter, 2004 should be a very good year (imho).
Earnings have grown slightly erratically from $2.12 in 1999 to $2.60 in the trailing twelve months. Free cash flow which was ($43) million in 2001, improved to $510 million in 2003 and was $581 million in the trailing twelve months.
Balance sheet is decent if not overwhelmingly impressive with $199.1 million in cash and $4.06 billion in other current assets vs. $2.9 billion in current liabilities and $3.03 billion in long-term liabilities.
The "key statistics" on Yahoo.com confirm my impression that this is a much better value than the previous post. The Market Cap is at $8.2 billion, the trailing p/e is very nice at 16.79 with a forward p/e (fye 28-Mar-05) at 13.41. Thus, the PEG ratio is only 1.17, and the Price/sales is at 0.60.
Yahoo reports 187 million shares outstanding with 186.50 million of them that float. There are 5.89 million shares out short...quite a few!....for a raio of 6.045 which represents the # of days of trading for the short sellers to cover their sale of borrowed shares...No dividend is paid, and the last split was a 2:1 in March, 1998.
I think this is a great stock in my humble opinion. Of course, check with your own financial advisor to make sure it is suitable for you! The news is there today....contract with U.K. worth a portion of $3.35 billion is impressive...the record of improving revenue, earnings, free cash flow, a satisfactory balance sheet and a PEG just over 1.0 with a price/sales under 1.0. The large number of short sales just represents pent up BUYING demand waiting to be unleashed on the market. If I find a few $'s to buy a few shares, I just might make the plunge...but you know the old story about MARGIN...so probably sitting on my hands.
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