We can see the steady picture of revenue growth from $459 million in 2003 to $1.46 billion in 2007. Earnings during this same period increased from $.26/share in 2003 to $.90/share in 2007. The company initiated dividends in 2005 at $.10/share and has increased it regularly to $.15/share reported in 2007. Meanwhile, outstanding shares have barely budged, increasing from 319 million shares in 2003 to 333 million in 2007.
Free cash flow is positive and increasing recently with $132 million reported in 2005 and $180 million reported in 2007. The balance sheet is solid, with $152 million in cash and $457 million in other current assets, compared to $211.2 million in current liabilities and the relatively small amount of long-term liabilities totaling $41.9 million. Thus, calculating the current ratio,a result of 2.88 is obtained.
This is a large cap stock with a market capitalization of $8.80 billion. The trailing p/e is a moderate 21.91, with a forward p/e of 17.53. The PEG ratio confirms the reasonable valuation of this stock with a value of 0.96.
In terms of the Return on Equity (TTM), SAY does a bit better with a figure of 25.62% compared to the industry average of (26.50)%. The company also does better on Return on Assets (TTM) with 21.52% figure, relative to the industry average of 12.48%.
Moreover, there are 334.77 million shares outstanding. Yahoo reports that as of 3/26/08, there were 7.71 million shares out short representing a rather sizable short ratio of 5.1 trading days. This is up from the prior month figure of 6.81 million shares, which also suggests a possible short squeeze in the making as this stock climbs higher.
The latest quarter was strong and the company raised guidance. The longer-term view is equally impressive with steady revenue growth, earnings growth, and even dividend growth! Outstanding shares have been relatively quite stable and free cash flow is positive. The balance sheet is solid.
Valuation-wise, the company sells at a modest p/e with a great PEG ratio reported. Price/Sales is a bit rich but the company is more profitable than its peers as judged by the Return on Equity and Return on Assets ratios. Finally, the chart looks satisfactory with the price undergoing a recent period of price consolidation and with the chart on the verge of 'breaking out' assuming the rest of the market holds up.
