Volcom Research Report 3

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Unformatted text preview: results from its usage. Redistribution is prohibited without the express written consent of TheStreet.com Ratings, Inc. Copyright(c) 2006-2010. All rights reserved. Report Date: June 27, 2010 PAGE 4 June 27, 2010 NASDAQ: VLCM VOLCOM INC Sector: Consumer Goods & Svcs Apparel, Accessories & Luxury Goods Source: GICS Annual Dividend Rate NA Annual Dividend Yield NA RATINGS HISTORY Our rating for VOLCOM INC was recently upgraded from Hold to Buy on 4/30/2010. As of 6/24/2010, the stock was trading at a price of $19.82 which is 20.1% below its 52-week high of $24.79 and 78.6% above its 52-week low of $11.10. HOLD: $25.78 BUY: $23.85 2 Year Chart Market Capitalization $483.1 Million Price/Earnings 1 2 3 premium $20 52-Week Range $11.10-$24.79 4 5 VLCM 19.24 Peers 20.36 • Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation. • VLCM is trading at a valuation on par with its peers. Price/Projected Earnings 2 3 premium From Hold Hold To Buy Hold Price reflects the closing price as of the date listed, if available RATINGS DEFINITIONS & DISTRIBUTION OF THESTREET.COM RATINGS (as of 6/24/2010) 25.29% Buy - We believe that this stock has the opportunity to appreciate and produce a total return of more than 10% over the next 12 months. 39.98% Hold - We do not believe this stock offers conclusive evidence to warrant the purchase or sale of shares at this time and that its likelihood of positive total return is roughly in balance with the risk of loss. 34.73% Sell - We believe that this stock is likely to decline by more than 10% over the next 12 months, with the risk involved too great to compensate for any possible returns. TheStreet.com Ratings, Inc. 262 Washington Street, 4th Floor Boston, MA 02108 www.thestreet.com Research Contact: 617-531-9717 Sales Contact: 866-321-8726 1 4 5 1 2 3 premium 4 5 Price/Sales 1 2 premium 3 4 5 Price to Earnings/Growth 4 5 discount 1 2 3 premium 4 5 discount VLCM 0.82 Peers 3.21 • Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. • VLCM trades at a significant discount to its peers. Earnings Growth 1 2 3 4 lower 5 higher VLCM 51.47 Peers 27.91 • Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. • VLC...
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