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Yahoo
a day ago
- Business
- Yahoo
What Texas Instruments Capital Strength Means for Its Dividend
Texas Instruments Incorporated (NASDAQ:TXN) is one of the Best Stocks to Buy for Dividends. A robotic arm in the process of assembling a complex circuit board - showing the industrial scale the company operates at. The company follows a strong business model centered on analog and embedded processing products, supported by its long-lasting competitive strengths. Another key part of its strategy to drive long-term growth in free cash flow per share is its disciplined approach to capital allocation. This includes careful selection of research and development projects, building new capabilities, investing in manufacturing capacity, evaluating potential acquisitions, and returning capital to shareholders. Texas Instruments Incorporated (NASDAQ:TXN)'s strategy also focuses on efficiency, which it defines as consistently aiming to generate greater results for every dollar spent. This approach emphasizes directing investments toward the most impactful areas to support the long-term growth of free cash flow per share, rather than simply cutting costs to the bare minimum. For shareholders, this commitment to efficiency is expected to support revenue growth, stronger gross margins, careful management of R&D and SG&A expenses, healthy free cash flow margins, and ultimately, an increase in free cash flow per share. Texas Instruments Incorporated (NASDAQ:TXN) currently offers a quarterly dividend of $1.36 per share. Overall, the company has raised its payouts for 21 consecutive years. In the past five years, it has raised its payouts at an annual average rate of over 9%, which is considered a solid pace in the tech sector. As of June 25, TXN has a dividend yield of 2.65%. While we acknowledge the potential of TXN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure. None. Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Compass Minerals International, Inc. (CMP): A Bull Case Theory
We came across a bullish thesis on Compass Minerals International, Inc. on The Lion's Roar - Outside the Box Investments' Substack by Dominick D'Angelo. In this article, we will summarize the bull's thesis on CMP. Compass Minerals International, Inc.'s share was trading at $19.67 as of June 24th. CMP's forward P/E was 23.70 according to Yahoo Finance. Tim Roberts Photography/ Compass Minerals (CMP) presented a compelling opportunity after an ~85% share price collapse, which led to severely depressed sentiment and set the stage for a high-conviction turnaround bet. The team's deep research—highlighted by distributor interviews, FOIL requests, and competitor site checks—helped form a differentiated and bullish view. Estimates going into the quarter were well above consensus, and the company exceeded even those elevated expectations. Salt revenue came in at $433 million, up 39% year-over-year, driven by colder-than-average weather that boosted highway deicing and C&I demand. A $147 million inventory reduction helped generate ~$170 million in free cash flow, with further working capital benefits expected in Q3. EPS estimates were revised materially upward across 2025–2027 on better pricing and volumes. Despite elevated production costs in Q2, likely due to lower Goderich output, capacity utilization is nearing 100%, and depots are empty ahead of the winter season, implying a robust bidding cycle. Contracts locked in during the inventory glut of mid-2024 saw a 5.2% pricing decline, but with inventories now depleted and producers unable to meet demand, Compass is positioned to capture higher-margin emergency orders. Market checks show prices spiking as high as $82/ton in some counties versus the $71/ton average reported in Q2. As volumes normalize, Compass should see margin improvement and operating leverage kick in. Meanwhile, the plant business posted improved volumes and its first y/y price increase since Q2 2023, aided by cost-cutting at Utah. With valuable assets, falling leverage, and a favorable market backdrop, CMP remains deeply undervalued despite its recent rally. Previously, we covered a s on Compass Minerals International, Inc. (CMP) by Dominick D'Angelo in March 2025, which highlighted its salt dominance, cost cuts, and early winter tailwinds. The company's stock has appreciated ~105% since our coverage, as the thesis played out. Dominick D'Angelo shares a similar view but emphasizes deeper research and operational momentum in the latest thesis. Compass Minerals International, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held CMP at the end of the first quarter, which was 31 in the previous quarter. While we acknowledge the risk and potential of CMP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Yahoo
5 days ago
- Business
- Yahoo
This Cheap Energy Stock is on Track for a Significant Increase in Cash Flows
Devon Energy Corporation (NYSE:DVN) is one of the 12 Best Natural Gas Stocks to Buy According to Analysts. A group of technicians in hazmat suits inspecting a natural gas storage tank. Devon Energy Corporation (NYSE:DVN) generated an impressive $1 billion in free cash flow in the first quarter of 2025, returning nearly half to shareholders through dividends and share buybacks. Moreover, the company boasts an impressive corporate breakeven of $45, positioning it well to generate value even in a low-price environment that we witnessed over the last couple of months. Devon Energy Corporation (NYSE:DVN) announced earlier this year that it is on track to deliver recently announced plans to boost its annual free cash flow by $1 billion by the end of 2026 by reducing drilling and completion costs and improving operating margins. At the company's current valuation multiples, capitalizing the after-tax impact of the targeted $1 billion of additional free cash flow could translate to an estimated $10 per share in value. With a current Forward P/E ratio of 8.88, Devon Energy Corporation (NYSE:DVN) is included among the 10 Cheap Energy Stocks to Buy Now. Devon Energy Corporation (NYSE:DVN) is a leading independent energy company engaged in finding and producing oil and natural gas, with operations focused onshore in the United States. While we acknowledge the potential of DVN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Nuclear Energy Stocks to Buy Right Now and Disclosure: None.
Yahoo
5 days ago
- Business
- Yahoo
This Cheap Energy Stock is on Track for a Significant Increase in Cash Flows
Devon Energy Corporation (NYSE:DVN) is one of the 12 Best Natural Gas Stocks to Buy According to Analysts. A group of technicians in hazmat suits inspecting a natural gas storage tank. Devon Energy Corporation (NYSE:DVN) generated an impressive $1 billion in free cash flow in the first quarter of 2025, returning nearly half to shareholders through dividends and share buybacks. Moreover, the company boasts an impressive corporate breakeven of $45, positioning it well to generate value even in a low-price environment that we witnessed over the last couple of months. Devon Energy Corporation (NYSE:DVN) announced earlier this year that it is on track to deliver recently announced plans to boost its annual free cash flow by $1 billion by the end of 2026 by reducing drilling and completion costs and improving operating margins. At the company's current valuation multiples, capitalizing the after-tax impact of the targeted $1 billion of additional free cash flow could translate to an estimated $10 per share in value. With a current Forward P/E ratio of 8.88, Devon Energy Corporation (NYSE:DVN) is included among the 10 Cheap Energy Stocks to Buy Now. Devon Energy Corporation (NYSE:DVN) is a leading independent energy company engaged in finding and producing oil and natural gas, with operations focused onshore in the United States. While we acknowledge the potential of DVN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Nuclear Energy Stocks to Buy Right Now and Disclosure: None.
Yahoo
16-06-2025
- Business
- Yahoo
PPC's (JSE:PPC) Earnings Offer More Than Meets The Eye
Shareholders appeared to be happy with PPC Ltd's (JSE:PPC) solid earnings report last week. This reaction by the market reaction is understandable when looking at headline profits and we have found some further encouraging factors. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. As finance nerds would already know, the accrual ratio from cashflow is a key measure for assessing how well a company's free cash flow (FCF) matches its profit. The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. The ratio shows us how much a company's profit exceeds its FCF. Therefore, it's actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive. While it's not a problem to have a positive accrual ratio, indicating a certain level of non-cash profits, a high accrual ratio is arguably a bad thing, because it indicates paper profits are not matched by cash flow. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future". Over the twelve months to March 2025, PPC recorded an accrual ratio of -0.10. That indicates that its free cash flow was a fair bit more than its statutory profit. Indeed, in the last twelve months it reported free cash flow of R1.0b, well over the R466.0m it reported in profit. PPC's free cash flow improved over the last year, which is generally good to see. However, that's not all there is to consider. The accrual ratio is reflecting the impact of unusual items on statutory profit, at least in part. See our latest analysis for PPC That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. PPC's profit was reduced by unusual items worth R186m in the last twelve months, and this helped it produce high cash conversion, as reflected by its unusual items. This is what you'd expect to see where a company has a non-cash charge reducing paper profits. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And, after all, that's exactly what the accounting terminology implies. Assuming those unusual expenses don't come up again, we'd therefore expect PPC to produce a higher profit next year, all else being equal. In conclusion, both PPC's accrual ratio and its unusual items suggest that its statutory earnings are probably reasonably conservative. Looking at all these factors, we'd say that PPC's underlying earnings power is at least as good as the statutory numbers would make it seem. If you'd like to know more about PPC as a business, it's important to be aware of any risks it's facing. You'd be interested to know, that we found 1 warning sign for PPC and you'll want to know about it. Our examination of PPC has focussed on certain factors that can make its earnings look better than they are. And it has passed with flying colours. But there is always more to discover if you are capable of focussing your mind on minutiae. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
