Month: May 2017

Stock Watch: Howden Joinery Group (Howdens)

Howden Joinery Group is the parent company for Howdens. Howdens was established in 1995 with 14 depots by its current chief executive Matthew Ingle when the business was part of the MFI Group. MFI was sold off in 2006 but the company (it was known as Galiform back then) was responsible for some significant onerous […]

PE ratios and how to use them

PE ratios and how to use them Price to earnings (PE) ratios are the most commonly used method of weighing up the value of a company and its shares. They are calculated using the following simple formula: PE ratio = Share price/Earnings per share (EPS) PEs are popular with investors because of their perceived simplicity […]

Stock Watch: Smart Metering Systems (AIM:SMS)

I recently wrote about Smart Metering Systems in my exclusive weekly newsletter for SharePad and ShareScope customers. It’s an interesting company so I have decided to dedicate a Stock Watch to it. Smart Metering Systems (SMS) has been in business since 1995. The company’s roots were established following the deregulation of the domestic gas meter […]

Stock Watch: FW Thorpe

FW Thorpe was founded in 1936 and has been listed on the stock exchange since 1965. The company designs and manufactures professional lighting systems for commercial markets. It has been very successful in carving out a profitable niche for itself and its shares have proven to be a very decent long term investment. What makes […]

Looking beyond free cash flow

Ask me about the kind of financial characteristics I like to see in a potential investment and the first two I will usually cite are as follows: A high and sustainable return on capital employed (ROCE). Ideally I am looking for companies where ROCE adjusted for rented assets (leases) is more than 15%. Conversion of […]