EMC Corporation ($EMC) Cautious Buy or Hold to $27 Confident Investor Rating: Fair

Company name EMC Corporation
Stock ticker EMC
Live stock price [stckqut]EMC[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $25.15
Target stock price (averages with growth) $33.92
Target stock price (averages with no growth) $31.55
Target stock price (manual assumptions) $26.58

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

EMC Corporation (EMC), and its subsidiaries develop, deliver and support the Information Technology (IT) industry’s range of information infrastructure and virtual infrastructure technologies, solutions and services. The Company manages its business in two broad categories: EMC Information Infrastructure and VMware Virtual Infrastructure. EMC Information Infrastructure provides a foundation for organizations to store, manage, protect, analyze and secure ever-increasing quantities of information, improve business agility, lower cost of ownership and enhance their competitive advantage within traditional data centers, virtual data centers and cloud-based IT infrastructures. Its EMC Information Infrastructure business consists of three segments: Information Storage, Information Intelligence and RSA Information Security. In July 2014, EMC acquired TwinStrata Inc, a Natick-based developer of cloud-integrated storage solutions.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in EMC Corporation as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of EMC Corporation calculated?

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(access_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: $26.95
  • Growth: 0.101
  • Current EPS (TTM): $1.26
  • P/E: 21
  • Future EPS Calc: $2.03
  • Future Stock Price Calc: $42.8
  • Target stock price: $26.58

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

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.