Should You Jump On the EMC Bandwagon?

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E = Equity to Debt Ratio Is Strong

The debt-to-equity ratio for and balance sheet for EMC are strong. As you can see below, that’s common for the industry.

Debt-To-Equity

Cash

Long-Term Debt

EMC

0.07

$5.47 Billion

$1.71 Billion

NTAP

0.28

$5.57 Billion

$1.23 Billion

STX

0.81

$2.47 Billion

$2.87 Billion

 

T = Technicals on the Stock Chart Are Mixed

EMC has outperformed NetApp (NASDAQ:NTAP) over the past three years, but Seagate Technology (NASDAQ:STX) stole the show. You could also say Seagate Technology added salt to the wound with its dividend payments. Seagate Technology currently yields 4.80 percent.

1 Month

Year-To-Date

1 Year

3 Year

EMC

-3.38%

-3.83%

10.54%

36.23%

NTAP

3.52%

1.58%

-3.52%

2.19%

STX

11.70%

3.39%

81.05%

86.53%

 

At $24.33, EMC is currently trading below all its averages.  

50-Day SMA

24.77

100-Day SMA

25.77

200-Day SMA

26.03

 

E = Earnings Have Been Steady

EMC has been steadily improving earnings since 2009. It’s also important to note that EPS for 2011 exceeded EPS for 2007, which is difficult to find in any industry.

2007

2008

2009

2010

2011

Revenue ($)in billions

13.23

14.88

14.03

17.02

20.01

Diluted EPS ($)

0.74

0.61

0.53

0.88

1.10

 

When we look at last quarter on a YoY basis, we see an increase in revenue and earnings.

9/2011

12/2012

3/2012

6/2012

192012

Revenue ($)in billions

4.98

5.57

5.09

5.31

5.28

Diluted EPS ($)

0.27

0.38

0.27

0.29

0.28

 

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