fredag 15 september 2017

Nytt bolag, faktiskt ett Buffet bolag

Nog första gången för mig. I dessa stressade tider plankar jag hänsynslöst en beskrivning jag hittade, ni kan nog ändå lätt lista ut varför jag äger som ju är ledande producent av bygg gipsskivor med fabriker i Texas och Florida.

USG Corporation (USG)

Dividend Yield: N/A (USG does not currently pay a quarterly dividend) (men omfattande återköpsprogram)
Adjusted Price-to-Earnings Ratio: 13.5
Percent of Warren Buffett’s Portfolio: 0.74%
10 Year Total Return CAGR: -3.8%
Warren Buffett has a $1.1 billion investment in the USG Corporation, equating to 39,002,016 shares and 0.74% of the overall investment portfolio. Berkshire became USG’s largest shareholder in 2013 when it exercised its position of USG convertible bonds acquired in 2008. Berkshire’s position is unchanged from the prior 13F filing.
The USG Corporation – also known as United States Gypsum – is the United States’ leading manufacturing of gypsum wallboard, joint adhesives, and other raw materials necessary for the construction and remodelling industry.
Founded in 1902, USG is headquartered in Chicago, Illinois and has a market capitalization of approximately $4 billion.
Because of its reliance on the construction and remodelling industries to drive the sales of its raw materials, USG is a highly cyclical business. The company has executed significant bankruptcy reorganizations twice in its history: in 1993 and in 2006.
However, USG’s recent financial performance has been much better. In the most recent quarter, USG reported net sales growth of 5% and adjusted diluted earnings-per-share growth of 4.8% (from $0.42 to $0.44). The company’s growth was driven by fundamental improvements in its main markets: U.S. wallboard volumes improved 10% from the prior year’s period, while many of the company’s manufacturing costs remained flat year-on-year.
USG Corporation Q2 2017 Highlights
While flat manufacturing costs contributed to USG’s growth in the most recent quarter, this is not a trend that is expected to continue.
In fact, an inflationary cost environemtn is expected to have a significantly negative impact on USG’s performance going forward. USG is expected mid-single-digit cost inflation in each of its three primary operating units (U.S. Wallboard Products, U.S. Surfaces & Substrates Products, and U.S. Ceilings Products).
USG Corporation Mitigating An Inflationary Environment
However, USG’s long-term growth prospects appear bright (and Warren Buffett’s investment shows that the Oracle of Omaha clearly agrees).
USG continues to invest heavily in its business, expecting to spend $200 million on capital expenditures in the full-year of fiscal 2017.
In addition, USG will continue to benefit from a unique tax situation. The company is carrying forward about $1.3 billion of net operating losses, which means it will pay no cash taxes for the foreseeable future. This is a tremendous benefit to USG’s near-term cash flows.
USG Corporation 2017 Financial Outlook
USG does not currently pay a quarterly dividend, which makes it an unappealing investment to the majority of the readers of Sure Dividend.
However, the stock’s attractive valuation may partially compensate for USG’s lack of dividend payments, particularly for investors that are not looking to generate current portfolio income.
Quantitatively, USG is expected to report adjusted earnings-per-share of $1.95 in fiscal 2017, and its stock is currently trading at $26.31 for an adjusted price-to-earnings ratio of 13.5 (using 2017’s expected earnings).
A price-to-earnings ratio of 13.5 is trading at a significant discount to the S&P 500’s current price-to-earnings ratio of 24.2. USG Corporation’s attractive valuation combined with its backing from Warren Buffett suggest that this stock merits further research and a potential buy recommendation.

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Kan tillägga här att senaste uppgiften jag har om OSB priser är upp 2.9%, tror det är veckovis rapportering och ovan var från igår. Kanske därför aktien var stark.

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