This week we’re wrapping up Owner Earnings for Fiat Chrysler. Is this company on sale? We also talk about why you shouldn’t always trust what the analysts think of a company.
In This Episode You’ll Learn
- Fiat Chrysler Owner Earnings 2017 – Cash Flow Statement
- Net profit: €3.5 billion
- Depreciation & Amortization: €5.9 billion
- Net Change Accounts Receivable: €-2.6 million
- Net Change Accounts Payable: €1.1 billion
- Income Tax: €2.6 billion
- Maintenance Capital Expenditure: €-8.7 billion
- Owner Earnings: €5 billion
- Why you should be stacking cash right now. Nothing is on sale.
- Why Fiat Chrysler MAY be on sale
- Why the price of Fiat Chrysler may be lower than it should be
- Peak of growth for auto companies.
- Near a recession.
- Peak of consumer borrowing.
- Fiat Chrysler compared to GM.
- Did a very similar thing to Fiat.
- Fiat Chrysler compared to Ford.
- How powerful the movements of trend in an industry are.
- Why Owner Earnings can lead us to a better answer than a lot of other ways of looking at value – like analyst ratings.
- Can analysts put false values and growth rates on companies?
- What growth rates to use: Historical Growth Rate OR Analyst Growth Rate – whichever is LOWER. Use common sense.
- Why investors like Mohnish and Guy Spier are so rare.
- Why it’s important to find companies that are obviously on sale and easy to understand.
Danielle and Phil Recommend
- Growth Rates: Invested page 222