Thought present, and simultaneously set up the rating criteria, one of the companies in their niche

Thought present, and simultaneously set up the rating criteria, one of the companies in their niche that I think price-wise rheinmetall man looks most interesting at the moment; Joy Global. Joy Global manufactures, sells and services heavy machinery rheinmetall man used in mining. Both above and below ground. The focus is on mining equipment working on soft rocks. The company's origin rheinmetall man is a bankruptcy and reorganization of the company Harnischfeger 2001. After this "reboot" the company has grown rapidly. It sells primarily through two brands. Joy, which is associated with equipment underground. In principle, rheinmetall man the company supplies rheinmetall man everything rheinmetall man to kolgruvsindustrin. P & H which is associated with equipment above ground. In 2011 they made a major acquisition. Le Tourneau and half International Mining Machinery. Le Tourneau is an old venerable company rheinmetall man with equipment above ground. IMM is one of the largest in China within kolgruvsutrustning. In 2012 bought the remainder of IMM, which is now wholly owned by Joy Global. Business has made its mark on the balance sheet (goodwill) and is visible in the cash flows (dividends have been stagnant rheinmetall man and cash flows have gone to purchase instead). Earlier acquisitions were made in 2008 by the CCC as evidenced by cash flows. However, it was not as big overall impact on the company. rheinmetall man
About two-thirds rheinmetall man of all sales is related to kolgruvsnäringen in one way or another. Overall, so that the sale of equipment about half of sales and service-part second half. Large, mid or equivalent in any of the Nordic exchanges alternatively on the NYSE. Joy Global is listed on the NYSE. The Ticker JOY owner Institutional investors in varying sizes degrees. Provides company and it is expected to pay dividends? The company has given dividends since 2004 (3 years after reconstruction) and since then has never reduced rheinmetall man the dividend. However, it has been stagnant for four years in a row now. Instead, the money went to the purchase. The assessment is that you will be able to continue to provide dividends at least in line with now. 2012 was the dividend of 0.70 USD / share. 5-year average (2008-2012) is at 0.69 usdr / share, compared with profit in the same period in average 5 usd / share. It gives a dividend rate equivalent to approximately 14%. Free cash flow is estimated to be about 3.50 usd / share during the same period. There is significant risk that the company's business is strongly influenced by external factors such as commodity prices, interest rate changes, political decisions and stock market fluctuations? Yes. As a supplier to the mining industry and also extra dependent on coal mining deemed Joy Global to be extra prone to råvaruprisers swings. The buying of a large Chinese company puts the company well for a (in my opinion) higher political risk. The dependence (as well as opportunities) of Chinese coal industry has thus greatly increased. Is the company dependent on innovative rheinmetall man product? No not as much as meant by the criterion. Proven ability rheinmetall man to turn a profit through high and slump, or at least shown the ability to pay dividends during such periods What do you say about a company whose origin is a bankruptcy? Yes in the present form, it has worked in all cases. They have managed to increase profits year on year, although some years have been a little rheinmetall man tougher than others without any real profit growth. Some losses exhibits man at least not since 2001 and there has not been talk of someone utdelningssänking. 2012 profits were 7.13 usd / share. The gain that the 3-year average (2010-12) is 5.75 usd / share. Current 12-month earnings is 6.72 usd / share (July 2013).
The historical operating rheinmetall man margins are around 20%. 2005 and earlier was lower (about 15%). 20% is very good and a partial explanation rheinmetall man may be the high service component. Mining Machinery slit. They wear very much, generating revenue for the selling spare parts and provide service. Profit growth is around 10% per year on average (total and per share. Company buys virtually no shares) Interest-bearing debt less than equity Equity is 2.6 billion usd. Long Term Debt is 1.3 billion USD and the share of total liabilities of 3.6 billion usd. Debt / Equity 1.38 (YEAR 2012) and seemingly strong. It's the same leverage as eg Atlas Copco makes use of. Goodwill and intangible assets account for over 1/3 of its assets, which is a fairly high percentage. The reason is the large acquisitions that have just taken place. Will they pay off? Interest-bearing rheinmetall man debt has increased by nearly 1 billion usd in recent years due to acquisitions, rheinmetall man on the other hand, it has not, overall, increased financial leverage. Quite the opposite. It has declined. The ball rolls back, however rheinmetall man if goodwill items are reasonable. Adjusting for the goodwill it has nevertheless the financial position has strengthened over time. The balance sheet can handle criterion. Yield and growth requirements, growth is around 10% per year, but the dividends have not kept up with. The money goes as told acquisitions instead. The return on equity is relatively high and tends recent years