P/E: 7 P/S: 0.36 P/B: 1.64 D/E: 0.17 Market Cap: $3.3 Bil.
The company is an omnichannel video retailer, it sells new and used video games in physical locations and online. Also it provides repair services, computer and gaming accessories and other related product. The industry has seen increased competition from platforms like Steam, and traditional retailers have been losing market share. The company has $450 mil. in cash, $350 million in long-term debt and is repurchasing shares. Free cash flow reached $480 mil. (ex. acquisitions), giving Gamestop a yield of 14%.
P/E: 10 P/S: 2.2 P/B: 4 D/E: 0.49 Market Cap: $521.8 Bil.
No need to introduce this company. Their recent quarter showed a decline in sales of iPhones and total revenues, first time in 13 years. The stock reacted accordingly and is down almost 30% from its recent peak. New products are coming in September, and many are expecting a much-needed boost to sales. Apple has over $220 billion in cash (incl. long-term investments) and $70 bil. in long-term debt. The company pays a 2,2% dividend which has steadily increased in recent years. In the last year, free cash flow was at $70 billion, yielding 13.4%. Carl Icahn recently sold his entire position though, citing concerns about China and their power to influence Apple's sales in the region.
P/E: 19 P/S: 1.21P/B: 2.23 D/E: 0.48 Market Cap: $6.93 Bil.
NTAP provides software, systems, and services to manage and store computer data worldwide. The stock has been under pressure recently, due to increased competition and falling behind in their technology. Several brokers have downgraded the company and expect further declines in sales. However, NetApp generated $1.1 in free cash flow last year, yielding 15.8%. Their legacy business has slowed down, while new products drive growth in certain areas. Cash and short term investments reached $5 billion in the last quarter, almost enough to pay for all liabilities. The company has continuously missed earnings estimates, so the analyst commnunity is pretty pessimistic about its prospects. Cash generation remains strong and they also pay a 3% dividend.
Tesoro Corporation (TSO)
P/E: 6.4 P/S: 0.33 P/B: 1.83 D/E: 0.78 Market Cap: $9.55.
Tesoro Corporation, through its subsidiaries, operates as an independent petroleum refining, logistics, and marketing company in the United States. They own six refineries with a capacity of 875 000 barrels per day. As crude oil prices tanked, their margins have expanded and stock enjoyed a nice run over the past few years. They generated $1 billion in free cash flow in 2015, and their contracts are long-term in nature. Total liabilities reached $11 billion. with $4 billion in long-term debt. Dividend yield stands at 2.5% and the company will be able to maintain it in the near future. It is a commodity business though, so a lot depends on the movement in prices of crude oil.
Discovery Communications (DSCA)
P/E: 17.3 P/S: 1.7 P/B: 2.14 D/E: 1.42 Market Cap: $10.9 Bil.
The company operates various television networks and media companies, including Animal Planet, Discovery Channel, TLC, Investigation Discovery, Science, Velocity, Discovery Family, American Heroes, Destination America, Discovery Life, Oprah Winfrey Network, Eurosport, DMAX and others. Long-term debt has reached 7.6 bil. vs. $15.8 in total assets, where almost $12 billion is represented by intangible assets. This doesn't look very healthy, the business faces significant competition from other content providers like Youtube, Netflix or Hulu. While free cash flow reached $1.1 billion (10% yield) this might not be a bargain as quarterly revenues declined in the recent year, and they will face pressure in the near future.