Stock Selection Guide

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Ethan Potter
5 years ago
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1 Stock Selection Guide Company Dycom Industries Date 12/06/18 Prepared by HENRIKSON Data taken from BI Stock Data Where traded NYS Industry Engineering & Construction Capitalization --- Outstanding Amounts Reference Preferred ($M) Insiders % Institution Common (M Shares) Debt ($M) % to Tot Cap 51.5 % Pot Dil VISUAL ANALYSIS of Sales, Earnings, and Price FY 2018 Q3 Sales ($M) Earnings Per Share Latest Quarter Year Ago Quarter Percentage Change % % (1) Historical Sales Growth 9.7% (3) Historical Earnings Per Share Growth 47.0% (2) Estimated Future Sales Growth 5.0% (4) Estimated Future Earnings Per Share Growth 5.1%

2 2 EVALUATING Management 5 5-YEAR POTENTIAL This combines price appreciation with dividend yield to get an estimate of total return. It provides a standard for comparing income and growth stocks. A Indicated Annual Dividend Closing Price B AVERAGE YIELD - USING FORECAST HIGH P/E Avg. % Payout Forecast High PE C COMPOUND ANNUAL RETURN - USING FORECAST HIGH P/E Annualized Appreciation Average Yield Annualized Rate of Return 8.5 % 8.5 % Current Yield AVERAGE YIELD - USING FORECAST AVERAGE P/E Avg. % Payout Forecast Average PE COMPOUND ANNUAL RETURN - USING FORECAST AVG P/E Annualized Appreciation Average Yield Annualized Rate of Return 4.7 % 4.7 % Dycom Industries Last 5 Year Avg. Pre-tax Profit on Sales 6.1% 3.1% -4.9% 1.1% 2.7% 5.4% 3.6% 3.7% 6.7% 7.7% 5.4% % Earned on Equity 9.6% 5.3% -13.5% 1.5% 4.4% 9.7% 8.5% 8.4% 15.4% 24.4% 13.3% % Debt To Capital 27.3% 25.7% 25.9% 25.5% 34.8% 32.3% 51.3% 48.6% 50.9% 56.3% 47.9% 3 PRICE-EARNINGS HISTORY as an indicator of the future This shows how stock prices have fluctuated with earnings and dividends. It is building block for translating earnings into future stock prices. CLOSING PRICE (12/06/18) HIGH THIS YEAR LOW THIS YEAR A B C D E F G H Year Price Earnings Price Earnings Ratio Dividend % Payout % High Yield High Low Per Share High A / C Low B / C Per Share F / C * 100 F / B * AVERAGE CURRENT/TTM AVERAGE PRICE EARNINGS RATIO: 19.7 CURRENT PRICE EARNINGS RATIO: EVALUATING RISK and REWARD over the next 5 years Assuming one recession and one business boom every 5 years, calculations are made of how high and how low the stock might sell. The upside-downside ratio is the key to evaluating risk and reward. A HIGH PRICE - NEXT 5 YEARS Avg. High P/E 19.7 X Estimate High Earnings/Share 4.59 Forecasted High Price $ 90.4 B LOW PRICE - NEXT 5 YEARS (a) Avg. Low P/E (b) Avg. Low Price of Last 5 Years (c) Recent Market Low Price (d) Price Dividend Will Support 13.3 X Estimate Low Earnings/Share 3.58 Forecasted Low Price $ Indicated Dividend High Yield Selected Forecasted Low Price $ 47.6 C ZONING using 25%-50%-25% Forecasted High Price 90.4 Minus Forecasted Low Price Range. 25% of Range 10.7 Buy Zone Hold Zone Sell Zone % 47.6 to to to 90.4 Present Market Price of is in the HOLD Zone D UPSIDE DOWNSIDE RATIO (POTENTIAL GAIN VS. RISK OR LOSS) High Price 90.4 Minus Present Price Present Price Minus Low Price To 1 E PRICE TARGET (Note: This shows the potential market price appreciation over the next five years in simple interest terms.) High Price Closing Price X % Appreciation

3 Notes: DY 12/6/18- by G Henrikson Date Subject Description Type 12/07/18 Judgements for DY Q3 FY 2019 SSG High Price Estimates: -Average High P/E: used 19.7 which is DY's signature/5 year average P/E, as P/E has been falling and CFRA predicts P/E of in next 5 years. -High EPS: 4.59 reflects slightly decreased earnings growth to sales and reflects rising costs of sales Low Price Estimates: -Average Low P.E 13.3 (5 year average low P/E) -Low EPS: 3.5 (sum of last 4 quarters on SSG Quarterly report) Community 1 of 1

4 Quarterly Growth Trend Data Graph: Trailing 4 Quarters, Last 5 Years of Data Quarterly Data Period EPS Pre-Tax Profit Sales Income Tax Rate Last 12 Months Data EPS Pre-Tax Profit Sales Income Tax %Change $ %Change $ Mil %Sales %Change $ Mil %Change $ $ Mil %Sales $ Mil %Rate EPS Pre-Tax Profit Sales 10/ , / , / , / , , / , / , / , / , / , / , of 3

5 Quarterly Growth Trend Data Quarterly Data Period EPS Pre-Tax Profit Sales Income Tax Rate Graph: Trailing 4 Quarters, Last 5 Years of Data Last 12 Months Data EPS Pre-Tax Profit Sales Income Tax %Change $ %Change $ Mil %Sales %Change $ Mil %Change $ $ Mil %Sales $ Mil %Rate EPS Pre-Tax Profit Sales 10/ , / , / , / , / , / , / , / , / , / , / , / , / , / , / , / , / , / , / , / / / / / , / , / , / , / , , , / , / , / , / , / , / of 3

6 Quarterly Growth Trend Data Quarterly Data Period EPS Pre-Tax Profit Sales Income Tax Rate Graph: Trailing 4 Quarters, Last 5 Years of Data Last 12 Months Data EPS Pre-Tax Profit Sales Income Tax %Change $ %Change $ Mil %Sales %Change $ Mil %Change $ $ Mil %Sales $ Mil %Rate EPS Pre-Tax Profit Sales 04/ / / of 3

First Cut Stock Study Report

First Cut Stock Study Report Company Name: LKQ Ticker: LKQ Date of Study: 11/28/2016 Price: Your Name: Ann Cuneaz $ 33.44 (11/25/16) Email address: annc@betterinvesting.org City: Madison Heights State: