10-21-2011: Sotheby's Holdings, Inc. (BID): Going Where the Money Is
Corporate Wepages
Company Profile |
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Similar Companies Performance:
Bond Issue |
Zenith Index |
Under current market conditions, a Zenith Index Score of 1.20 or above is required for a positive rating on this factor. 1.21 -1.30 is considered acceptable, 1.30-1.40 is consider strong and > 1.40 is considered exceptionally strong. Accounting statements in this section often contain mistakes, especially in earlier years' totals, but data is deemed sufficient for us to give a rating. More accurate financial statements follow in the next section.
Sotheby's (BID ) Sector: Services
1334 York Avenue Industry: Specialty Retail, Other
New York, NY 10021 Exchange: NYSE
Sotheby-Ęs, together with its subsidiaries, operates as an auctioneer of
fine and decorative art, jewelry, and collectibles in North America,
Europe, and Asia. The company operates in three segments: Auction,
Finance, and Dealer. The Auction segment functions principally as an agent
offering works of art for sale at auction and brokering private art sales.
The Finance segment provides financing to collectors and art dealers. This
segment offers secured loans, including advances secured by consigned
property to borrowers who are contractually committed to sell the property
at auction in the near term; and general purpose term loans secured by
property not presently intended for sale. The Dealer segment sells
artworks, such as Dutch and Flemish Old Master paintings, and French
impressionist and post-impressionist paintings directly to private
collectors and museums. This segment also acts as a broker in private
purchases and sales of artworks; and involves in the investment in and
resale of artworks. In addition, the company engages in licensing
Sotheby-Ęs International Realty and related trademarks primarily in the
United States; and licensing its Sotheby-Ęs brand name for use in
connection with the art auction business in Australia, and art education
services in the United States and the United Kingdom. Further, it operates
sothebys.com with various features, including an online bidding feature,
mobile and iPhone/iPad Website access, e-catalogues, Chinese language
e-catalogues, and a wine retail feature. Sotheby-Ęs was founded in 1744 and
is headquartered in New York, New York.
Last Trade: 31.54 52-Week Range: 55.67 - 25.00
Trade Date: 10-19 Avg. Volume: 1,580,140 Shares
Index Membership: Employees: 1,380
Corporate Governance:
Audit (Low Concern), Board (Low Concern), Compensation (Medium
Concern), Shareholder Rights (Low Concern).
EPS: 2.98 Dividend Amount: $ 0.20 Yield: 0.60%
Ex-Dividend Date: Aug 30, 20 Mkt Cap: $ 2,130,000K
Payout Ratio: 9.00%
Last Split Factor (new for old): N/A Split Date: N/A
Key Statistics:
Enterprise Value: $ 1,940,000K Revenue (ttm) : $ 880,400K
Gross Profit: $ 688,480K
Earnings before Income Tax, Depreciation and Amortization: $ 344,490K
Enterprise Value/Revenue (ttm): 2.21 Revenue per Share: $ 13.17
Enterprise Value/EBITDA (ttm): 5.64 Qtrly Rev Growth (y to y): 31.40%
P/E Ratio (fwd projected): 9.86 P/E Ratio (current): 10.60
P/E Growth Ratio (5 yr expected): 0.59 Operating Margin: 37.27%
Price/Sales Ratio: 2.42 Profit Margin: 23.46%
Price/Book Value: 2.29 Book Value: $ 13.75/sh.
Return on Assets: 8.78% Net Income Avl to Common: $ 203,340K
Return on Equity: 26.46% Diluted Earnings/Share: $ 2.98
Qrtly Earnings Growth (yoy): 47.50%
Balance Sheet Items : Cash Flow Items (ttm):
(most recent qrtr) (trailing 12 mo.)
Total Cash: $ 666,180K Operating Cash Flow:$ 337,240K
Total Debt: $ 480,390K Lvgd Free Cash Flow:$ 243,490K
Total Debt/Equity: 51.71
Total Cash/Share: $ 9.86
Current Ratio: 1.60
Share Statistics: Stock Price History:
Shares Outstanding: 67,550K Stk 52-Week Change: -13.68%
Float: 66,640K S&P 500 52-Wk Chng: 5.10%
Sh. Short % of Float: 8.70% 50-Day Moving Avg: 33.48
Short Ratio: 4.40 200-Day Moving Avg: 40.33
% Held by Institutions: 97.00% Beta: 2.41
% Held by Insiders: 1.19%
Analysts' Estimates: Cur. Qtr Next Qtr Cur. Year Next Year
___________________________ Sep 11 Dec 11 Dec 11 Dec 12
Average Earnings Estimate -0.35 1.49 3.07 3.20
Average Revenue Estimate 7M 332M 897M 945M
Factors Comparing This Company to Its Industry Leader (1.0 = Average):
Long Term EPS Growth Rate (5 yr): 8.000 EPS Growth (Qrtly YoY): 6.095
PEG Ratio (ttm, 5 yr expected): 3.657 P/E Ratio (ttm): 12.069
Revenue Growth (Qrtly YoY): 8.533
Annual Income Statements: All numbers in thousands)
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Total Revenue 774,309 484,958 691,559
Cost of Revenue 85,829 67,945 157,388
Gross Profit 688,480 417,013 534,171
Operating Expenses:
Research & Development 0 0 0
Selling, General & Administrative 398,044 330,160 435,792
Non-Recurring Expenses -54 12,159 -884
Other Operating Expenses 16,492 21,560 24,845
Total Operating Expenses 0 0 0
Operating Income or Loss 273,998 53,134 74,418
Income from Continuing Operations:
Total Other Income/Expenses Net -1,600 7,969 10,741
Earnings Before Interest & Taxes 272,398 61,103 85,159
Interest Expense 46,819 45,708 36,682
Income Before Taxes 225,579 15,395 48,477
Income Tax Expense 65,273 22,162 22,347
Minority Interest 0 0 0
Net Income from Continuing Op.s 154,659 -5,489 28,269
Non-recurring Events:
Discontinued Operations 0 0 0
Extraordinary Items 0 0 0
Effect of Accounting Changes 0 0 0
Other Items 0 0 0
Net Income 160,950 -6,528 28,269
Preferred Stock & Other Adjustmnts 0 0 0
Net Income Avail To Common Shares 160,950 -6,528 28,269
Quarterly Income Statements: All numbers in thousands)
Period Ending Jun30,2011 Mar31,2011 Dec31,2010 Sep30,2010
Total Revenue 369,795 119,582 317,960 73,060
Cost of Revenue 34,605 14,862 29,946 19,538
Gross Profit 335,190 104,720 288,014 53,522
Operating Expenses:
Research & Development 0 0 0 0
Selling, General & Adminis. 140,016 89,666 128,305 78,965
Non-Recurring Expenses 2,268 0 -4 -148
Other Operating Expenses 4,241 4,101 4,188 3,852
Total Operating Expenses 0 0 0 0
Operating Income or Loss 188,665 10,953 155,525 -29,147
Income from Continuing Operations:
Total Other Income/Expenses Net -218 2,986 -3,971 2,505
Earnings Before Int. & Taxes 188,447 13,939 151,554 -26,642
Interest Expense 10,559 10,388 11,643 11,840
Income Before Taxes 177,888 3,551 139,911 -38,482
Income Tax Expense 50,806 1,031 43,889 -18,948
Minority Interest 0 0 0 0
Net Income from Continuing Op.s 127,234 2,421 89,958 -19,361
Non-recurring Events:
Discontinued Operations 0 0 0 0
Extraordinary Items 0 0 0 0
Effect of Accounting Changes 0 0 0 0
Other Items 0 0 0 0
Net Income 127,234 2,421 96,249 -19,361
Preferred Stock & Other Adj.s 0 0 0 0
Net Income Avail To Common Shs 127,234 2,421 96,249 -19,361
Annual Balance Sheets: All Numbers in Thousands
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Current Assets:
Cash & Cash Equivalents 502,475 345,694 279,029
Short Term Investments 0 0 0
Net Receivables 803,815 460,897 740,630
Inventory 126,534 142,565 186,589
Other Current Assets 17,580 19,211 20,661
Total Current Assets 1,450,404 968,367 1,226,909
Long-Term Investments 190,577 117,129 43,084
Property, Plant & Equipt 372,692 370,224 206,206
Goodwill 0 0 14,202
Intangible Assets 15,012 16,356 3,471
Accumulated Amortization 0 0 0
Other Assets 110,240 69,158 77,936
Deferred Long Term Asset Charges 39,703 44,889 107,523
Total Assets 2,178,628 1,586,123 1,679,331
Current Liabilities:
Accounts Payable 868,294 434,647 555,181
Short/Current Long Term Debt 0 0 0
Other Current Liabilities 9,090 7,828 8,611
Total Current Liabilities 877,384 442,475 563,792
Long Term Debt 472,862 512,939 493,075
Other Liabilities 11,785 18,800 19,527
Deferred LT Liability Charges 45,089 34,924 49,275
Minority Interest 0 0 0
Negative Goodwill 0 0 0
Total Liabilities 1,407,120 1,009,138 1,125,669
Stockholder Equity:
Misc. Stocks Options Warrants 0 0 0
Redeemable Perferred Stock 0 0 0
Preferred Stock 0 0 0
Common Stock 673 672 6,718
Retained Earnings 444,717 297,579 325,478
Treasury Stock 0 0 0
Capital Surplus 345,066 317,081 272,694
Other Stockholder Equity -18,948 -38,347 -51,228
Total Stockholder Equity 771,508 576,985 553,662
Net Tangible Assets 756,496 560,629 535,989
Quarterly Balance Sheets: All Numbers in Thousands
Period Ending Jun30,2011 Mar31,2011 Dec31,2010 Sep30,2010
Current Assets:
Cash & Cash Equivalents 716,467 344,580 502,475 370,206
Short Term Investments 0 0 0 0
Net Receivables 1,078,908 536,273 803,815 415,858
Inventory 126,687 130,593 126,534 133,686
Other Current Assets 27,012 27,324 17,580 20,375
Total Current Assets 1,949,074 1,038,770 1,450,404 940,125
Long-Term Investments 177,622 184,436 190,577 118,110
Property, Plant & Equipt 375,410 374,648 372,692 369,982
Goodwill 15,214 15,236 0 14,364
Intangible Assets 0 0 15,012 854
Accumulated Amortization 0 0 0 0
Other Assets 119,729 116,250 110,240 76,802
Deferred LT Asset Charges 32,403 34,305 39,703 39,862
Total Assets 2,669,452 1,763,645 2,178,628 1,560,099
Current Liabilities:
Accounts Payable 1,189,696 435,420 868,294 335,163
Current Portion LT Debt 16,611 181,260 0 0
Other Current Liabilities 13,269 9,452 9,090 10,596
Total Current Liabilities 1,219,576 626,132 877,384 345,759
Long Term Debt 460,640 293,881 472,862 518,934
Other Liabilities 11,539 11,715 11,785 11,997
Deferred LT Liab. Charges 48,739 48,417 45,089 34,936
Minority Interest 0 0 0 0
Negative Goodwill 0 0 0 0
Total Liabilities 1,740,494 980,145 1,407,120 911,626
Stockholder Equity:
Misc. Options, WarrantS 0 0 0 0
Redeemable Perferred Stock 0 0 0 0
Preferred Stock 0 0 0 0
Common Stock 675 675 673 667 Retained Earnings 567,502 443,687 444,717 351,972
Treasury Stock 0 0 0 0
Capital Surplus 350,023 341,517 345,066 334,701
Other Stockholder Equity 10,758 -2,379 -18,948 -38,867
Total Stockholder Equity 928,958 783,500 771,508 648,473
Net Tangible Assets 913,744 768,264 756,496 633,255
Annual Cash Flow: All Numbers in Thousands
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Net Income 160,950 2,421 28,269
Operating Activites:
Depreciation 27,601 31,815 24,845
Adjustments to Net Income 35,860 33,864 44,625
Changes in Accounts Recv'bls -316,110 178,670 198,020
Changes in Liabilities 432,059 -133,498 -426,367
Changes in Inventories 3,966 35,857 -20,923
Changes in Other Op'ing Actv's 0 18,341 -23,947
Total Cash Flow fr Operations 341,738 158,521 -175,478
Investing Activities:
Capital Expenditures -17,999 -100,879 -24,192
Investments -105,458 28,774 -5,828
Other Cash Flows fr Investing 0 6,316 -53,688
Total Cash Flows fr Investing -119,680 -65,789 -83,708
Financing Acitivies:
Dividends Paid -13,620 -20,434 -40,651
Sale or Purchase of Stock 14,031 1,269 -17,961
Net Borrowings -54,576 -1,696 227,781
Other Cash Flows fr Financing 0 -3,385 1,086
Total Cash Flows fr Financing -58,211 -24,246 170,255
Effect of Exchange Rate Change -1,763 -375 -5,854
Change in Cash & Cash Equiv.s 162,084 68,111 -94,785
Quarterly Cash Flow: All Numbers in Thousands
Period Ending Jun30,2011 Mar31,2011 Dec31,2010 Sep30,2010
Net Income 127,234 2,421 96,249 -19,361
Operating Activites:
Depreciation 7,228 6,952 7,017 6,649
Adjustments to Net Income 7,517 8,240 6,347 13,906
Changes in Accounts Recv'bls -598,826 262,813 -371,055 371,887
Changes in Liabilities 762,408 -437,318 538,338 -461,568
Changes in Inventories 4,140 -4,072 4,355 9,758
Changes in Other Oper'g Acts 0 -17,777 6,790 -13,828
Total Cash Flow f Operations 320,495 -178,741 288,041 -92,557
Investing Activities:
Capital Expenditures -3,221 -5,325 -6,402 -4,643
Investments 51,346 36,958 -103,477 -20,041
Other Cash Flows fr Investing 0 9,273 11,856 1,789
Total Cash Flows fr Investing 8,215 40,906 -98,023 -22,895
Financing Acitivies:
Dividends Paid -3,420 -3,451 -3,504 -3,235
Sale or Purchase of Stock 2,541 25 4,051 633
Net Borrowings -736 -566 -54,130 -446
Other Cash Flows fr Financing -77 -18,374 0 -301
Total Cash Flows fr Financing -1,692 -15,124 -51,028 -3,349
Effect of Exchange Rate Chg 0 0 0 3,901
Change in Cash & Cash Equiv. 331,576 -149,058 138,046 -116,932
BID Sotheby's [Indices near +3.0 or near zero,
or < zero bear special attention.]
P/E Ratio Tests:
Current P/E Ratio < 28? 2.6415 P/E Ratio > 5? 1.0000
P/E Ratio Vs Growth Rate: -0.2300 Forward P/E Ratio < 28? 2.8398
Sales Tests:
Price/Sales Ratio < 2.3? 0.9504 Inventory/Sales < 5%? 0.3060
Sales < $1 billion? 1.2915 Operating Margin < 7.5%? 0.2012
Balance Sheet Tests:
Debt/Equity < 0.40? 0.0077 Long-Term Debt Service: 1.6316
LTD Being Reduced? 1.8000 Short-Term Debt Service: 3.0000
Current Ratio > 2? 0.8000 Working Capital >= 1.5? 1.2514
Leverage Ratio < 20%? 1.0193 Debt / Assets < 1? 3.0000
Quick Ratio > 1? 1.4721 Inventory Turnover > 1? 0.8646
Shares Out Decreasing? 0.6000 Market Cap.> 1.5 Billion? 0.7042
Profit Margin > 7.5%? 3.0000
Income Tests:
Dividend Yield > 2.0%? 3.0000 EPS Annual Growth > 10%? 3.0000
Enterprise Value/Revenue: 1.4733 EPS 5-yr Growth > 20%? -2.8060
Enterprise Value/EBITDA: 0.8057 EPS Growth Consistent? 1.8000
EPS Qrtly Growth > 10%? 3.0000 Collection < 45 days? 0.1188
Rev. Qtrly Growth > 15%? 3.0000 Gross Pft/Cur. LTD < 1? 3.0000
EPS Annual Growth > 10%? 3.0000 Borrowing Int. Rate< 6%? 0.9762
Stock Performance Tests:
Volatility > 25%? 3.0000 % Held by Insiders < 5%? 3.0000
Beta > 1.25? 1.9280 % Held by Institut. < 50? 0.5155
50 Da MA > 200 Da MA? -0.6516 % Held by Institut. > 30? 3.0000
52-Wk Change vs. S&P 500: 0.3400 Short Ratio > 5? 0.8800
Price/Book Value < 3? 1.7100 Short % of Float > 20? 0.4350
Return on Assets > 17%? 0.5165 Average Volume > 100,000? 3.0000
Cash Flow Tests:
Oper. C.F. > Lever'd C.F: 1.3850 Positive Free Cash Flow? 1.0000
Positive Oper. Cash Flow? 1.0000 Price to C.F./sh. Ratio: 0.6248
Cash Flow / Assets >.10? 0.9121
BID Sotheby's Overall Zenith Index: 1.4513
Financial Statements |
Financial Ratios |
. . . . . . . . . . . . 1 = Highest , 10 = Lowest
Market Grader |
Intrinsic Value (DCF) |
Intrinsic Value by Discounted Cash Flow Method:
Intrinsic Value (PEG) |
Intrinsic Value by Projected Earnings Growth Method:
Stock Scout |
We find "Scout" to be a bit biased toward the high end, so anything under a 6 is considered a negative, 6 and above, positive.
Projected Earnings |
Research Reports |
Analysts' Opinions |
Insider Activity |
Institutional Activity |
Institutional Orders to Buy or Sell:
Sentiment |
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.
Short Interest Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Stock Report |
Management's Discussion of Results of Operations Excerpts |
Moving Average Chart |
Right Time Study |
Channeling Potential |
The summary below includes a value for `Degree,' which refers on a
scale of 1 to 10 the range of a channel in the period under consi-
deration compared to the total range of price movement. It also looks
for the last closing price to be within the channel, otherwise zeroed.
The `Index' is the `Degree' weighted for volatility. Generally, the
the higher the index, the more suitable is the stock for trading as
a `rolling stock' between channel high and low points.
Results for Sotheby's Holdings:
Symbol? BID
Total Months Available: 46
Months in Cycle? 4
Months Covered by Periods: 12
Period 1 Period 2 Period 3
H1 L1 H2 L2 H3 L3
47.80 36.09 55.67 37.17 48.90 25.00
RANGE = 55.67 TO 25.00 Close = 31.12
CHANNEL = 47.80 TO 37.17 Degree = 3
Volatility = 34.16% Index = 10
Intraday Chart |
10 Days:
Stock Fetcher |
Point & Figure Chart |
Wall Street Analyzer |
Marketspace Chart |
Time Series Forecast |
Neural Network Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
Ultimate Trading Systems |
The corresponding trades for the above chart are shown in tabular form below.
Recommendation |
| Factors | Weighted Points |
|---|---|
| News | + 1 |
| Comparison | + 1 |
| Industry | + 1 |
| Bond Issue | 0 |
| Zenith Index | + 1 |
| Non-GAAP vs. GAAP Earnings < 1% | + 1 |
| Cash Flow | + 1 |
| Ratios | + 1 |
| Market Grader | + 1 |
| Intrinsic Value DCF | + 1 |
| Intrinsic Value DDM | + 1 |
| Stock Scout | + 1 |
| Projected Earnings | + 1 |
| Research Reports | 0 |
| Analysts | + 1 |
| Executive Perquisites | - 1 |
| Insider Activity | - 1 |
| Institutional Activity | - 1 |
| Management Reporting | + 1 |
| Short Interest | + 1 |
| Sentiment | + 1 |
| Standard & Poor's | + 1 |
| Moving Average | + 1 |
| Right Time Study | + 1 |
| Stock Fetcher | + 1 |
| Point & Figure | - 1 |
| Wall Street Analyzer | - 1 |
| Marketspace Chart | - 1 |
| Time Series Chart | - 1 |
| Neural Network | 0 |
| Stock Options | + 1 |
| Ultimate Trading Systems | - 1 |
| Total | + 13 |
Place 990 shares of Sotheby's Holdings Inc. (BID) on the Active List.
