Research Reports Featuring Companies Selling At Least 25% Below Their Highs: BEN, RLGY, HBI

With the major indices eclipsing their all-time highs on, what seems to be, a daily basis, it is getting increasingly difficult for investors to uncover intrinsically undervalued companies. At Boyar Research, we’ve been successful finding those companies, in both bull and bear markets, since 1975.

To demonstrate the quality of our work, we are offering three complimentary research reports featuring companies whose stock price is currently selling at least 25% below their highs.

To receive these reports, please click here.

Franklin Resources (BEN)

  • Franklin shares are down ~25% from peak 2014 levels;
  • The performance of the company’s largest mutual fund, the Franklin Income Fund, ranked in the top one percentile among its peer group for 2016;
  • Franklin’s robust profitability (35%-40% operating margins) coupled with its minimal capital intensity enables it to generate a significant amount of free cash flow. This has allowed the company to return over $13 billion to shareholders via share repurchases or dividends over the past ten years (this equates to ~64% of its market cap);
  • We derive an intrinsic value of $56 per share and note that if shares continue to languish we would not be surprised to find the company as an acquisition target.

Realogy Holdings (RLGY)

  • Realogy’s company-owned brokerage and franchise services make it the leading residential real estate broker in the U.S.;
  • Shares have declined >40% from mid-2015 highs and are currently trading around the October 2012 IPO price;
  • The company’s high free cash flow yield should enable accelerated share repurchases;
  • Should shares continue to flounder, we would not dismiss the possibility that Realogy could explore a split-up, or once again become a private equity target.

Hanesbrands (HBI)

  • Boyar Research is attracted to companies with great consumer franchises, and Hanesbrands, which owns brands that include Hanes, Champion, and Maidenform, certainly fits this criteria;
  • Boyar Research had not profiled Hanesbrands since 2014 when the stock traded at a split adjusted price of $16.80 (current share price is $20.01). Hanesbrands shares subsequently peaked at $34.50 in mid-2015 followed by a steady decline to today’s current price due to weakening organic growth and concerns over earnings quality;
  • As acquisition related charges decline, free cash flow improves, and organic top-line growth accelerates, we believe Hanesbrands will shed its perception as a high risk roll-up leading to an improved valuation.

To receive these reports, please click here.

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