Carl Icahn’s asset allocation strategy originally published at long-term-investments.blogspot.com. Some of you might have heard something about Carl Icahn, the successful investor. Icahn manages around $21.5 billion in his asset management vehicle Icahn Capital Management.
Within the past, Icahn had proved a very good taste in investing. With only 19 shares, he is also a much undiversified guy and focused on stocks he really knows. In the past I’ve described his latest Q1 stock purchases.
Today, I would like to show you the latest stock moves from Carl Icahn of the second quarter.
Icahn loves cheap stocks and he is also a noisy guy like most of the activists. The average forward P/E of his latest acquisitions is only at 13.83 and earnings are expected to grow by 10.32 percent for the next five years.
Here are the latest dividend stock purchases:
CVR Refining LP (NYSE:CVRR) has a market capitalization of $4.00 billion. The company employs 832 people, generates revenue of $8.281 billion and has a net income of $595.29 million. CVR Refining LP (NYSE:CVRR)’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.101 billion. The EBITDA margin is 13.30 percent (the operating margin is 11.55 percent and the net profit margin 7.19 percent).
Financial Analysis: The total debt represents 34.23 percent of CVR Refining LP (NYSE:CVRR)’s assets and the total debt in relation to the equity amounts to 78.83 percent. Due to the financial situation, a return on equity of 116.88 percent was realized by CVR Refining LP (NYSE:CVRR). CVR Refining LP (NYSE:CVRR) started to pay dividends this year, $1.58 on May 8 and $1.35 on August 05, 2013. Icahn increased the stake by 50%.
Icahn Enterprises LP (NASDAQ:IEP) has a market capitalization of $8.51 billion. The company employs 45,000 people, generates revenue of $15.654 billion and has a net income of $727.00 million. Icahn Enterprises LP (NASDAQ:IEP)’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.882 billion. The EBITDA margin is 12.02 percent (the operating margin is 4.13 percent and the net profit margin 4.64 percent).
Financial Analysis: The total debt represents 34.81 percent of Icahn Enterprises LP (NASDAQ:IEP)’s assets and the total debt in relation to the equity amounts to 183.08 percent. Due to the financial situation, a return on equity of 8.48 percent was realized by Icahn Enterprises LP (NASDAQ:IEP). Twelve trailing months earnings per share reached a value of $3.90. Last fiscal year, Icahn Enterprises LP (NASDAQ:IEP) paid $0.40 in the form of dividends to shareholders. Icahn Enterprises LP (NASDAQ:IEP) increased the stake by 1.48%.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.41, the P/S ratio is 0.54 and the P/B ratio is finally 1.62. The dividend yield amounts to 6.61 percent and the beta ratio has a value of 0.85.
Transocean LTD (NYSE:RIG) has a market capitalization of $16.75 billion. The company employs 18,400 people, generates revenue of $9.196 billion and has a net income of $816.00 million. Transocean LTD (NYSE:RIG)’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.592 billion. The EBITDA margin is 39.06 percent (the operating margin is 17.21 percent and the net profit margin 8.87 percent).
Financial Analysis: The total debt represents 36.37 percent of Transocean LTD (NYSE:RIG)’s assets and the total debt in relation to the equity amounts to 79.13 percent. Due to the financial situation, a return on equity of 5.15 percent was realized by Transocean. Twelve trailing months earnings per share reached a value of $4.58. Last fiscal year, Transocean paid no dividends to shareholders. Icahn increased the stake by 6.57%.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.14, the P/S ratio is 1.82 and the P/B ratio is finally 1.06. The dividend yield amounts to 4.82 percent and the beta ratio has a value of 1.24.
Dell Inc. (NASDAQ:DELL) has a market capitalization of $24.34 billion. The company employs 108,800 people, generates revenue of $56.940 billion and has a net income of $2.372 billion. Dell Inc. (NASDAQ:DELL)’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.504 billion. The EBITDA margin is 7.91 percent (the operating margin is 5.29 percent and the net profit margin 4.17 percent).
Financial Analysis: The total debt represents 19.11 percent of Dell Inc. (NASDAQ:DELL)’s assets and the total debt in relation to the equity amounts to 85.07 percent. Due to the financial situation, a return on equity of 24.21 percent was realized by Dell Inc. (NASDAQ:DELL). Twelve trailing months earnings per share reached a value of $0.76. Last fiscal year, Dell paid $0.16 in the form of dividends to shareholders. Icahn increased the stake by 2.078% compared to Q1. He recently announced to give-up the fight about a takeover of Dell Inc. (NASDAQ:DELL).
Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.16, the P/S ratio is 0.43 and the P/B ratio is finally 2.25. The dividend yield amounts to 2.31 percent and the beta ratio has a value of 1.35.
Herbalife Ltd. (NYSE:HLF) has a market capitalization of $6.56 billion. The company employs 6,200 people, generates revenue of $4.072 billion and has a net income of $477.19 million. Herbalife Ltd. (NYSE:HLF)’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $735.83 million. The EBITDA margin is 18.07 percent (the operating margin is 16.24 percent and the net profit margin 11.72 percent).
Financial Analysis: The total debt represents 28.62 percent of Herbalife Ltd. (NYSE:HLF)’s assets and the total debt in relation to the equity amounts to 115.89 percent. Due to the financial situation, a return on equity of 97.29 percent was realized by Herbalife. Twelve trailing months earnings per share reached a value of $4.54. Last fiscal year, Herbalife paid $1.20 in the form of dividends to shareholders. Icahn increased the stake by 3.74%.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.06, the P/S ratio is 1.61 and the P/B ratio is finally 16.20. The dividend yield amounts to 1.88 percent and the beta ratio has a value of 1.95.
Take a closer look at the full list of Carl’s latest dividend stock moves as of Q2/2013. The average P/E ratio amounts to 13.66 and forward P/E ratio is 13.83. The dividend yield has a value of 5.08 percent. Price to book ratio is 4.10 and price to sales ratio 1.18. The operating margin amounts to 10.23 percent and the beta ratio is 1.38. Stocks from the list have an average debt to equity ratio of 1.05.
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Disclosure: none
