Category Archives: Fundamental Analysis

Rental Cars- Hertz & Avis: HTZ CAR



These two car rental companies were mentioned in the Friday edition of Investors Business Daily in ¬†an article about stocks touching their 50 day moving averages. As this is a likely point to buy strong companies as they bounce off their moving average to move higher, I decided to take a look into the fundamentals of these companies. What can one say but “blah.” Lots of debt, poor margins, and vacillating earnings. As someone with the luxury of being a selective investor, this is an industry group I will pass up.

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FleetCor Technologies: FLT


FleetCor Technologies is another company showing growing earnings and profit margins. All quarterly earnings are up significantly from the previous years quarter. FLT also has great return on assets and return on equity.

Analyzing this company has raised a few interesting questions. First, the large increase in shares contributed to a lower annual EPS number than the previous year, but diluted EPS still rose. In this situation, should you be concerned about the decreasing basic annual EPS, or does the fact that it is due to new stock issues mean it is not a big problem? Secondly, I find that the EPS numbers found in SEC fillings often differ from the numbers reported on sites like Businessweek. This must be due to adjustments in accounting methods used by the company and the financial services. The question is, who’s numbers should you pay more attention to?

Tagged PCLN


PCLN is an outstanding company! They have shown great sustained growth over the years. Both gross and net profit margins are substantial and increasing. To top things off, PCLN has a nice balance sheet as well. This is a stock to keep watching!


AMC Networks: AMCX


AMC Networks has been growing steadily since its setback during the recent recession. They have shown good annual EPS growth, strong increases in revenue, steady and strong gross profit margins, and strengthening net profit margins. The stability of AMCX’s quarterly earnings has not been strong, and may be showing signs of slowing growth, which is a concern for the future. Quarterly earnings, however, are down 10% from the previous year’s same quarter, so we will want to see strong quarterly EPS growth tomorrow when AMC Networks report their Q4 earnings. Analyst consensus is for $0.63 per share, an increase of 45% from the previous year’s quarter. The high estimate is at $0.79/share, while the low estimate is $0.24/share.