BDBD:S&P Quality Ranking: NR Standard & Poor's Fair Value Rank : 1--Fair Value Calc: $11.50 (Overvalued) Sep 6,2014 .
Key financial variables to consider in assessing the investment merits of an industrial company are the following: Sales: What is the trend? Is future sales growth expected to be greater than the past 5-year and 9-year growth average? Accelerating sales growth ultimately provides the fuel behind earnings growth. Net Margin: As a key measure of company profitabilty, a rising net margin assesses management capability to wring out more net income from incremental sales. % LT Debt to Capitalization: A rising percentage implies greater financial risk, all else being equal. Rising debt leverage without a concomitant rise in Return on Equity should raise warning signals of potential cash flow problems. Percentages above 40%-50% should also be considered a warning. % Return on Equity: A key perfomance measurement of capital efficiency assesses what investment returns management can earn on a company's existing capital base. A sustained percentage above 20% is considered above average.
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