No respect. It’s hard to imagine that Research in Motion has become the Rodney Dangerfield of tech stocks. Just two years ago it seemed every analyst in the country was behind the company and its prospects. That country was, of course, The United States, home to Apple, Google, and Palm, who some nervy analysts are now actually comparing the Blackberry maker to. Is this a cultural thing? A few weeks ago Bloomberg reported on a growing divide between the way US and Canadian analysts saw the stock, which is now trading near a three year low. They noted that ten of eleven Canadian analysts who cover the stock rate it a buy, while just 54 percent of the 35 U.S. analysts covering the stock do. Investors following analysts who see RIM as a sloth in the world of iPhones and Androids might be surprised at the Waterloo giant’s numbers. It was just a year ago that Fortune named the company the fastest growing company in the world, and Research in Motion hasn’t yet taken its foot off the pedal, posting 24% top line growth in its Q1 2011 numbers, reported in late June. Is it possible that Research in Motion is now both a growth and a value stock? With the RIM stock chart showing a beaten up stock, we break down the numbers in an updated Quant Snapshot: Research in Motion (TSX:RIM).
1. Price to Sales: 1.56 x sales
As of Friday, September 3rd, Research in Motion had 552 million shares outstanding. The price, as of the same date, was $44.78. (Note: We have used the price of RIM’s NASDAQ listing because the company’s financials are reported in US Dollars) This gave The Company a market capitalization of $24.7 billion. In the trailing four quarters RIM posted sales of $15.74 billion.
2. Cash to Market Cap: 9.47%
As of Q1, 2011 (May 29th, 2010) RIM had a Cash and Short Term Investments position of $2.34 billion. The Company’s Market Capitalization, as of Friday, September 3rd was $24.7 billion.
3. Debt to Market Cap: Zero
As of Q1, 2011 (May 29th, 2010) RIM had no Long Term Debt.
4. Three Year Growth: 72.2%
Revenue was $3.03 million in FY 2007. This grew to $14.9 billion in FY 2010.
5. Enterprise Value to Sales: 1.42 x Sales
RIM’s Enterprise Value is $22.36 billion based on a market capitalization of $24.7 billion, plus Long Term Debt of Zero, minus Cash and Short Term Investments of $2.34 billion. In the trailing four quarters, sales totaled $15.74 billion.
All financial information about RIM is gleaned from
their filings with the System for Electronic Document Analysis and
All calculations are based on The Company’s closing share price as of
close September 3rd, 2010: $44.78
Sales from trailing four quarters: $15.74 billion
Cash and Short Term Investments as of Q1, 2011 (May 29th, 2010): $2.34 billion
Shares outstanding: 552 million