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I came across Lexmark (LXK) today while scanning the lists of greatest movers. I do not own any of these shares nor do I have room at this time in my trading portfolio for any new positions...am up to 25! Looking at the money.cnn.com profile for the company, we find that Lexmark "...develops, manufactures and supplies printing solutions and products, including laser and inkjet printers and associated supplies for the office and home markets." As I recall, Lexmark is the old IBM typewriter company that morphed into a printing company. Do you remember those old daisy-wheel typewriters (that you still can buy) or those type-ball devices? Amazing what passes as nostalgia these days!
As I write, LXK is trading at $83.58/share, up $4.74 or 6.01% on the day.
What pushed Lexmark higher today was the fourth quarter earnings report which showed that revenue rose to $1.37 billion for the quarter from $1.21 billion last year, and net income rose to $138.8 million or $1.05/share from $116.3 million or $.90/share last year.
Looking at the Morningstar 5-yr results on Lexmark, we can see that revenue has grown steadily from $2.9 billion in 1998 to $3.4 billion in 1999, $3.8 billion in 2000, $4.1 billion in 2001, $4.4 billion in 2002 and $4.6 billion in the trailing twelve months.
Earnings have been a little less consistent but have grown from $1.70 in 1998 to $3.19 in trailing twelve months.
Free cash flow, while also a bit erratic, was $704 million in 2002, and $667 million in the trailing twelve months...so this company is spinning off a lot of free cash!
The company is very solvent, in my opinion, with $959.7 million in cash and $1.2 billion in other current assets, vs. $1.1 billion in current liabilities and only $637 million in long-term liabilities (did I say only $600 million?).
Looking at Yahoo "key statistics", we can see that this is a Large cap company with a market cap of $10.74 billion. The trailing p/e isn't too bad at 26.21 and going forward for the end of this year we have a forward p/e of 22.02. However the PEG ratio is at 2.05...so the company is still fairly richly priced, with price/sales of 2.21.
There are 128.48 million shares outstanding with 127.20 million of them that float. Currently there are 4.16 million shares out short representing 4.154 trading days as of 12/8/03. No dividend is paid. The last stock split reported on Yahoo was on 6/11/99.
Overall this is an interesting if not cheap selection. If you like a larger cap growth stock, Lexmark might be for you. In my case, I have lots of margin (!), and am at my goal of 25 positions in my trading portfolio. Which, by the way, I just updated yesterday....and you can get there by linking to the main Bob's Advice for Stocks website and clicking on the "Current Trading Portfolio and Stock Picks 2003" link along the left margin of the page!
Thanks again for stopping by!