CSS Industries (NYSE:CSS) is a paper products company creating items for every occasion. I stubled upon this company using Guru Focus' All-in-One Sceener. I set the screener with these parameters: dividend yield of at least 1.1%, paying dividends for at least a year, price to free cash flow ratio under 10, and a price to book ratio under 1, with a current ratio of at least one, excluding over the counter stocks. Only 12 stocks met this criteria, which is good news considering how overvalued the market is. I wasn't expecting to find more than 5 businesses to meet the criteria of this screener.
CSS has a dividend yield of 2.4% and has increased its dividend since 2003. That's a great start for a value investor to look a little closer. CSS is also priced below book value with a .9 P/B ratio. Finding a company priced below book value in this market is like finding a needle in a hay stack, so CSS seems like it could add value to an investor's portfolio. CSS has no debt and a current ratio of 6.69. This means that, in addition to having no long-term debt hanging over the company, CSS can pay its short term liabilities at least 6 times over with the current cash it has. CSS is also priced at 8.8 times its cash generating ability, which demonstrates value to me.
- Warning! GuruFocus has detected 2 Warning Signs with CSS. Click here to check it out.
- CSS 15-Year Financial Data
- The intrinsic value of CSS
- Peter Lynch Chart of CSS
In a market environment where almost every asset is overpriced, and overvalued, CSS is a diamond in the rough. With a hefty amount of cash and priced at less than 10 times its cash generating ability, CSS is a solid company. Throw in a dividend yield of 2.4%, and CSS seems like it could add value to an investors portfolio.