The long-term trend of the EPS is an important number as it indicates the present value of Norbord. It is typically displayed as a percentage and called the EPS growth rate, which at this time is hard to estimate, but revenue growth has been 21.40 % over the last twelve months. Growth in EPS is an important measure of administration performance because it shows how much money Norbord is making for it’s investors or shareholders.



Norbord is part of the basic materials sector and forest products industry. Norbord Inc is a producer of wood-based panels. It is engaged in manufacturing, sales, marketing and distribution of panelboards and related products. It has over 15 plant locations in the United States, Europe and Canada.

Previous Intraday Performance:

The OSB shares had a previous change of -4.73% which opened at 28.95 and closed at 27.79. It moved to an intraday high of 29.00 and a low of 27.75.

SeekingAlpha:  32 Of 60 Basic Materials WallStars Show ‘Safer’ Dividends For October

Historical Performance:

Over the last five trading days, OSB shares returned -12.33% and in the past 30 trading days it returned -30.48%. Over three months, it changed -27.02%. In one year it has changed -22.36% and within that year its 52-week high was 45.45 and its 52-week low was 27.75. OSB stock is 0.14% above its 52 Week Low.

Our calculations result in a 200 day moving average of 35.28 and a 50 day moving average of 36.41. Right now, OSB stock is trading -21.23% below its 200 day moving average and may not be a great opportunity to buy as it may continue to trend down.

SeekingAlpha:  50 Top Yield Basic Materials Dividend WallStars For October By Dividend Dogcatcher

Liquidity:

The company has a market cap of $2.4b with 86.7m shares outstanding and a float of 86.7m shares. Trading volume was 285,500 shares and has experienced an average volume of 247,998 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is bad, highly speculative and an investor may want to avoid this stock.

Earnings:

The last annual reported EPS for Norbord was 0 which ended on 31st of December 2017, which according to the previous close, that is a PE of inf. Based on 1 analyst estimate, the estimated EPS for the next quarter is 0.86. The trailing twelve month EPS is 5.82, which comes to a trailing twelve month PE of 4.77.

Below was the last reported quarterly earnings per share:
06-30-2018:  1.92
03-31-2018:  1.10
12-31-2017:  1.41
09-30-2017:  1.39



The dividend per share is currently 13.86, which is a dividend yield of 49.89%. OSB stock may not have sufficient earnings to cover future dividends and still be able to invest in and grow the business, therefore in the future the dividend may be reduced.

Base on our calculations, the intrinsic value per share is 39.16, which means it might be undervalued and has a margin of safety of 29.04%

Indicators Also to Watch:

Based on the latest filings, there is 78.70% of institutional ownership. Short-interest was 1,989,568, which was 2.29% of shares outstanding. The short-interest ratio or days-to-cover ratio was 8.87. This stock has some short interest, but it might be normal and no need to worry if long the position.

I calculated the beta to be 2.27

SeekingAlpha:  50 Top Yield Basic Materials Dividend WallStars For October By Dividend Dogcatcher

Fundamental Numbers:

Based on last reported financials, the company’s return on equity is 55.68%, return on assets is 27.52%, profit margin is 22.90%, price-to-sales is 1.03 and price-to-book is 2.09.

Company Score Card:

Results are out of six:
 1  : Growth Expectations Result
 5  : Financial Safety Result
 4  : Past Performance Result
 3  : Valuation Result
 4  : Dividend Safety Result
 3  : Overall Result

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Jake McWilliams
I am an independent trader, analyst and algorithmic trading expert, having worked both for the sell side (brokerage) and the buy side (fund administration). I have been trading professionally for about 20 years. I trade stocks and forex and I play both long and short positions in underlying asset or through options. I have experience with discretionary and fully automated systems (Metatrader and Quantshare).

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