Chicago Bridge & Iron Company N.V. ($CBI) Possible Buy to $129 Confident Investor Rating: Good

I am currently going through my Watch List to ensure that each company still deserves to be on the list. Because of the number of companies on my list, I am going to try to knock out 2 per weekday.

Company name Chicago Bridge & Iron Company N.V.
Stock ticker CBI
Live stock price [stckqut]CBI[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Fair
Sales growth Good
EPS growth Good
P/E growth Good
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $806.13
Target stock price (averages with growth) $496.26
Target stock price (averages with no growth) $214.73
Target stock price (manual assumptions) $129.48

The following company description is from Google Finance: http://www.google.com/finance?q=cbi

Chicago Bridge & Iron Company N.V. is an energy infrastructure focused company and provider of government services. The Company operates in four segments: Engineering, Construction and Maintenance, which offers engineering, procurement, and construction for energy infrastructure facilities; Fabrication Services, which provides fabrication of piping systems, process and nuclear modules, fabrication and erection of steel plate storage tanks and pressure vessels for oil and gas and power generation industries; Technology, which offers licensed process technologies, specialized equipment, and engineered products for use in petrochemical facilities, oil refineries, and gas processing plants and provides process planning and project development services, and Government Solutions, which undertakes programs and projects, including design-build infrastructure projects for federal, state and local governments, as well as offers environmental services for government and private sector customers.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Chicago Bridge & Iron Company N.V.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $83.55

Growth: 0.2

Current EPS (TTM): $4.19

P/E: 20

Future EPS Calc: $10.42

Future Stock Price Calc: $208.52

Target stock price: $129.47

I hope that this makes you a better investor. [/s2If]

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