On May 8, Motley Fool Inside Value selection Tyco International
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Year-over-year revenues increased by 7.4%, with 4.4% being organic and the rest attributable to acquisitions.
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The electronics segment, which is the company's largest, grew sales by 10% while operating income before special items grew only 1%.
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The company is spinning off its health-care and electronics segments in June.
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Tyco sports an impressive four-star rating in the investor intelligence database that is Motley Fool CAPS, while fellow conglomerate and Inside Value selection 3M
(NYSE:MMM) boasts the top rating -- five stars.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$10,838 |
$10,087 |
7.4% |
|
Net Profit* |
$838 |
$960 |
(12.7%) |
|
EPS* |
$0.42 |
$0.46 |
(8.7%) |
|
Diluted Shares |
2,024 |
2,107 |
(3.9%) |
Get back to basics with the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
32.8% |
33.8% |
(1.0) |
|
Operating Margin |
10.7% |
14.0% |
(3.3) |
|
Net Margin |
7.7% |
9.5% |
(1.8) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$4,056 |
$2,389 |
69.8% |
|
Accounts Rec. |
$7,341 |
$6,822 |
7.6% |
|
Inventory |
$5,337 |
$4,640 |
15.0% |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$3,464 |
$3,148 |
10.0% |
|
Long-Term Debt |
$8,609 |
$9,242 |
(6.8%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$1,584 |
$960 |
65.0% |
|
Capital Expenditures |
$406 |
$425 |
(4.5%) |
|
Free Cash Flow |
$1,178 |
$535 |
120.2% |
Free cash flow is a Fool's best friend.
Related Foolishness:
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