Shell implicitly acknowledges that the fiduciary requirement
of returning value to shareholders does not absolve corporations of broader ethical responsibilities.
This is evidenced by the Shiva termination, and the Board's recent statement that they ``... seek to accelerate the process
of returning value to shareholders through a review of the investment and realisation strategy and over the next twelve months steps will be taken to try and achieve this aim».
A dividend is one method
of returning value to shareholders, some companies pay richer dividends than others; some companies don't typically pay a dividend.
As mentioned, dividends are a way
of returning value to shareholders.
An initial catalyst attracted my attention in September — in their Final Results they stated: `... The Board has decided to seek to accelerate the process
of returning value to shareholders through a review of the investment and realisation strategy and over the next twelve months steps will be taken to try and achieve this aim `.
I chose the company partly because I knew it had a long history
of returning value to shareholders.
Another way
of returning value to shareholders is to engage in share buybacks - company purchases / cancels shares.
Not exact matches
In a note, analyst Michael Senno wrote that «as an owner
of sports cable networks and teams, we believe that MSG is well positioned
to capitalize on the increasing
value of premium sports content, which should result in AOCF and free cash flow growth above its peers and, combined with incremental leverage, lead
to solid
shareholder returns.»
At today's prices, industry forecasts
of three million barrels per day by 2020 are likely
to underestimate production by a bit, but the real kicker will be on the
value of that production
to all concerned — governments, via taxes and royalties, and
shareholders will all suffer much lower
returns from this development than they would have expected less than a year ago if prices stay where they are today.
5:03 - Tim says the board is actively looking at the full range
of options available
to return to growth and create
value for employees, advertisers, users and
shareholders.
The performance goals upon which the payment or vesting
of any Incentive Award (other than Options and stock appreciation rights) that is intended
to qualify as Performance - Based Compensation depends shall relate
to one or more
of the following Performance Measures: market price
of Capital Stock, earnings per share
of Capital Stock, income, net income or profit (before or after taxes), economic profit, operating income, operating margin, profit margin, gross margins,
return on equity or stockholder equity, total
shareholder return, market capitalization, enterprise
value, cash flow (including but not limited
to operating cash flow and free cash flow), cash position,
return on assets or net assets,
return on capital,
return on invested
Are they a way
to preserve companies» ability
to pursue long - term
value in the face
of shareholders who are overly focused on immediate
returns?
Unlike some businesses that believe they only exist
to maximize
return on investment for their
shareholders, Conscious Businesses focus on their whole business ecosystem, creating and optimizing
value for all
of their stakeholders, understanding that strong and engaged stakeholders lead
to a healthy, sustainable, resilient business.
Fairfax Financial Holdings Limited is a holding company whose corporate objective is
to achieve a high rate
of return on invested capital and build long term
shareholder value.
Operation margins are 15 %, the business
returns 22 %
of revenue
to shareholders via distributions and buybacks, and the enterprise
value to EBITA is a scant 12.1.
These costs include bankers» and lawyers» fees, the risk
of class - action litigation, the need
to reveal commercially sensitive information that could benefit rivals, and the prospect
of fights with corporate raiders who want juicier
returns for
shareholders and social activists who want executives
to pay heed
to their
values.
In determining the long - term incentive component
of CEO compensation, the Committee shall consider, among other factors, the Company's performance and relative
shareholder return, the
value of similar incentive awards
to chief executive officers at comparable companies, the awards given
to the CEO in past years, and other factors considered relevant by the Committee.
Those huge economies
of scale allow it
to return more
value to shareholders, but Wood suggests the benefits have mostly accrued
to Lemann, Telles, and Sicupira's bank accounts.
Investors must trust the agents
of capital (i.e., executives)
to focus on earning the highest
return per dollar invested, and thereby growing
shareholder value.
Instead
of being a market timer, I'm a buy - and - sell investor, with a focus on
valuing individual stocks.Find stocks that lie within your circle
of competence, analyze them as
to whether they meet your qualitative criteria (such as competitive advantage, strong balance sheet, high
return on capital,
shareholder - friendly management.
The
value of a company is simply the present
value of the cash flows it is going
to return to shareholders over its lifetime.
While some defend the buyback practice as a method
of returning cash
to shareholders, others, including my colleague Larry Fink, have argued that some companies today are focusing on maximizing short - term
shareholder value at the expense
of investing in the future.
Add in that Amazon is diluting
shareholders by one percent in the last twelve months, versus Macy's which is
returning capital through dividends and share repurchases at a rate
of twelve percent, and you get a complete picture
of why Macy's looks attractive
to a
value investor.
Our focus on identifying a stock's true economic
value and our willingness
to patiently own it until that
value is realized means that the penny - perfect purchase or sale price does not contribute meaningfully
to the total
return of the stock for our
shareholders.
This agreement is an important part
of positioning RiceBran Technologies
to focus on creating
shareholder value by pursuing long - term opportunities
to expand our core ingredients business that will improve our margins and EBITDA and generate positive
returns on capital.»
We aim
to generate
value for our
shareholders by delivering sustainable
returns in the form
of a regular, reliable and growing dividend, share repurchases, and long - term capital appreciation.
Prem Watsa is the Chairman
of the Board
of Directors and the Chief Executive Officer
of Fairfax Financial Holdings Limited, a financial services holding company whose corporate objective is
to achieve a high rate
of return on invested capital and build long - term
shareholder value, since 1985.
As you can see, the intrinsic
value of the enterprise (as evidenced by the compounding net worth and earning power) has compounded very nicely over a long period
of time, which has led
to similar
returns for
shareholders.
The
value of a company is simply the present
value of the cash flows it is going
to return to shareholders over its lifetime.
We've been following AVGN (see earlier posts here and here) because it's a net cash stock (i.e. it's trading at less than the
value of its cash after deducting all liabilities) and it has a specialist biotechnology activist fund Biotechnology Value Fund (BVF) pushing it to liquidate and return its cash to sharehol
value of its cash after deducting all liabilities) and it has a specialist biotechnology activist fund Biotechnology
Value Fund (BVF) pushing it to liquidate and return its cash to sharehol
Value Fund (BVF) pushing it
to liquidate and
return its cash
to shareholders.
We've been following AVGN (see earlier posts here, here, here, here, here and here) because it's a net cash stock (i.e. it's trading at less than the
value of its cash after deducting all liabilities) and specialist biotechnology activist fund BVF has been pushing it
to liquidate and
return its cash
to shareholders.
We've been following AVGN (see earlier posts here, here and here) because it's a net cash stock (i.e. it's trading at less than the
value of its cash after deducting all liabilities) and it has a specialist biotechnology activist fund Biotechnology Value Fund (BVF) pushing it to liquidate and return its cash to sharehol
value of its cash after deducting all liabilities) and it has a specialist biotechnology activist fund Biotechnology
Value Fund (BVF) pushing it to liquidate and return its cash to sharehol
Value Fund (BVF) pushing it
to liquidate and
return its cash
to shareholders.
Some funds using complex strategies can carry expense ratios
of 2 % or more, a significant headwind when trying
to maximize
shareholder value, and those expenses eat into
shareholder returns.
While being paid for holding a stock is attractive
to many, and for good reason,
shareholders can earn high
returns if the
value of their stock increases while they hold it.
A good Score (i.e.,
value of 1) is assigned if the current ratio exceeds two, or net current assets exceed long - term debt, or 10 - year history
of positive earnings, or 10 - year history
of returning cash
to shareholders or EPS are at least a third higher than they were 10 years ago.
And one way
to think about it is this: As long as you are paying a fair price for Markel — one that is equal or below intrinsic
value — and Markel can grow intrinsic
value at 12 - 14 % per year, then you should expect 12 - 14 %
shareholder returns over a long period
of time.
Since 2000, the goal
of the Hussman Funds has been
to serve our
shareholders by seeking long - term
returns, adhering
to a
value - conscious, historically - informed, risk - managed discipline focused on the complete market cycle...
We opened our position because AVGN was a net cash stock (i.e. it's trading at less than the
value of its cash after deducting all liabilities), albeit a cash burning net cash stock, and BVF was pushing it
to liquidate and
return its cash
to shareholders.
But looking at
Shareholder Equity, (and dividing that by the number
of shares held
to get the book
value per share) if a company is able
to earn, say, $ 1.50 on a stock whose book
value is $ 10, that's a 15 %
return.
There is much debate about whether companies should increase
shareholder value by repurchasing their shares or
returning excess cash
to shareholders by way
of dividends.
A mutual fund's
shareholders have a continuing right
to withdraw their investment in the fund simply by submitting their shares
to the fund itself and receiving in
return the dollar amount
of their net asset
value.
That happens because the assets are not really worth what we think they are worth, or because the
value doesn't get
returned to shareholders and management misallocates resources at low or negative rates
of return.
Once (or should I say if) this pension / labour dispute is put
to rest, I'd actually expect a rapid & substantial improvement in
shareholder value — this might be a substantial
return of capital or a tender offer (
to distribute surplus cash), and / or a potential new partnership or even a takeover offer..?!
In addition, share tender / buybacks are obviously a great way
of returning Zamano's surplus cash pile
to shareholders in a
value - enhancing manner.
But I neglected
to consider that not only is the cost
to monetize the
value of the rigs»
value large, but more importantly the incentive for management
to return value to shareholders by scrapping the rigs was simply not there and therefore any analysis concerning scrap
value was just that, scrap without the «s».
For
shareholders looking
to close the
value gap the best outcome,
of course, would be for management
to return any cash from a refinancing in the form
of a dividend or share buyback.
More likely: If no strategic buyer is found for the Sellers stake, and the shares are distributed
to lots
of little
shareholders current management may not be pressured into
returning full intrinsic
value over the next couple
of years (i.e. No catalyst, no efficient asset allocation).
In my opinion, however, ADGF's share underperformance is due primarily
to the ongoing dilution described above as well as
shareholder value destruction caused by generating
returns below the company's cost
of capital.
This is because Warren believes he can generate higher
returns (in intrinsic
value and in turn eventual share price) through investing in the purchase
of new businesses, rather than the
returns to shareholders through payment
of a dividend.
The strong growth and cash flow from Humira, the continued development
of their drug pipeline, and management's commitment
to returning capital
to shareholders through dividends has increased our estimate
of fair
value for the company and changed our holding period from one year
to multiple years.