Fundamental Analysis
ABOUT US
Norbord Inc. is an international producer of wood-based panels with assets of US $1.6 billion. We have 17 plant locations in the United States, Europe and Canada.
We manufacture OSB in the United States, Canada and Europe. In addition, we manufacture MDF, particleboard and furniture in Europe.
Reasons to buy – Norbord
High level decisions on buy or sell for a stock should be driven by
1. The margin that the company makes. i.e. Out of $1 that the company sells how much does the company taken home.
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- Here we see Norbord makes a margin of 25% on Gross Level and about 20% on Net level. This means that out of $1 that it makes $0.2 is being pocketed as profits.
2. The growth rates of the company on revenue, net income, EPS and Dividend. i.e. If it sold $1 last year how much more did it sell this year.
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- Here we see net revenue growth of 23% in the revenue and the net profit figures grew by 138%.
3. The efficiency ratios of the company on Equity and Assets. i.e. How well is the company able to sweat each $1 that it puts to work in the company.
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- Here we see Norbord makes a Return on Assets of 21% and Return of Equity of 43% which is pretty good.
GOLD STANDARD : This is one of the no-debate stocks that are a must have in ones portfolio. Yes and these numbers are true. The company seems to be making $1.71 for each $1 that is invested to create assets.
All these ratios can be found in the attached excel sheets and are based on the EDGAR report submitted by Norbord to the SEC. All the data on the above analysis can be found at the link below
Balance Sheet
Income Statement
