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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry
vs
history
Cash to Debt 0.12
VAL's Cash to Debt is ranked lower than
63% of the 989 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 0.68 vs. VAL: 0.12 )
VAL' s 10-Year Cash to Debt Range
Min: 0.02   Max: 0.26
Current: 0.12

0.02
0.26
Equity to Asset 0.27
VAL's Equity to Asset is ranked lower than
63% of the 989 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 0.56 vs. VAL: 0.27 )
VAL' s 10-Year Equity to Asset Range
Min: 0.2   Max: 0.57
Current: 0.27

0.2
0.57
Interest Coverage 7.60
VAL's Interest Coverage is ranked higher than
52% of the 660 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 16.65 vs. VAL: 7.60 )
VAL' s 10-Year Interest Coverage Range
Min: 2.22   Max: 31.67
Current: 7.6

2.22
31.67
F-Score: 6
Z-Score: 3.18
M-Score: -2.50
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 12.00
VAL's Operating margin (%) is ranked higher than
88% of the 980 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 5.73 vs. VAL: 12.00 )
VAL' s 10-Year Operating margin (%) Range
Min: -1.01   Max: 12
Current: 12

-1.01
12
Net-margin (%) 7.05
VAL's Net-margin (%) is ranked higher than
81% of the 980 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 3.76 vs. VAL: 7.05 )
VAL' s 10-Year Net-margin (%) Range
Min: -3.51   Max: 7.27
Current: 7.05

-3.51
7.27
ROE (%) 25.77
VAL's ROE (%) is ranked higher than
98% of the 972 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 6.54 vs. VAL: 25.77 )
VAL' s 10-Year ROE (%) Range
Min: -11.43   Max: 25.77
Current: 25.77

-11.43
25.77
ROA (%) 7.19
VAL's ROA (%) is ranked higher than
87% of the 985 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 3.38 vs. VAL: 7.19 )
VAL' s 10-Year ROA (%) Range
Min: -3.96   Max: 11.93
Current: 7.19

-3.96
11.93
ROC (Joel Greenblatt) (%) 51.39
VAL's ROC (Joel Greenblatt) (%) is ranked higher than
98% of the 981 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 10.91 vs. VAL: 51.39 )
VAL' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -4.93   Max: 56.17
Current: 51.39

-4.93
56.17
Revenue Growth (%) 12.30
VAL's Revenue Growth (%) is ranked higher than
82% of the 789 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 5.20 vs. VAL: 12.30 )
VAL' s 10-Year Revenue Growth (%) Range
Min: -0.5   Max: 17.7
Current: 12.3

-0.5
17.7
EBITDA Growth (%) 11.90
VAL's EBITDA Growth (%) is ranked higher than
81% of the 681 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 4.20 vs. VAL: 11.90 )
VAL' s 10-Year EBITDA Growth (%) Range
Min: -45.6   Max: 18.5
Current: 11.9

-45.6
18.5
EPS Growth (%) 13.30
VAL's EPS Growth (%) is ranked higher than
79% of the 630 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 3.40 vs. VAL: 13.30 )
VAL' s 10-Year EPS Growth (%) Range
Min: -12.5   Max: 34.9
Current: 13.3

-12.5
34.9
» VAL's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

VAL Guru Trades in Q1 2013

Joel Greenblatt 10,097 sh (New)
Chuck Royce 5,400 sh (New)
Jim Simons 302,100 sh (New)
Paul Tudor Jones 85,000 sh (+54.55%)
Steven Cohen 15,904 sh (+42.89%)
Jeremy Grantham 33,533 sh (+22.9%)
Jean-Marie Eveillard 860,750 sh (+9.77%)
Bill Frels 3,179,474 sh (+0.63%)
Scott Black 109,188 sh (-1.8%)
Pioneer Investments 906,766 sh (-6.9%)
Meridian Funds 722,000 sh (-16.84%)
» More
Q2 2013

VAL Guru Trades in Q2 2013

Ray Dalio 17,011 sh (New)
Joel Greenblatt 21,453 sh (+112.47%)
Paul Tudor Jones 130,900 sh (+54%)
Pioneer Investments 932,436 sh (+2.83%)
Scott Black Sold Out
Bill Frels 3,165,552 sh (-0.44%)
Jeremy Grantham 32,811 sh (-2.15%)
Meridian Funds 697,200 sh (-3.43%)
Jean-Marie Eveillard 764,150 sh (-11.22%)
Steven Cohen 5,092 sh (-67.98%)
Jim Simons 67,600 sh (-77.62%)
Chuck Royce 1,200 sh (-77.78%)
» More
Q3 2013

VAL Guru Trades in Q3 2013

Steven Cohen 32,800 sh (+544.15%)
Joel Greenblatt 60,461 sh (+181.83%)
Jean-Marie Eveillard 851,050 sh (+11.37%)
Paul Tudor Jones 140,000 sh (+6.95%)
Bill Frels 3,203,112 sh (+1.19%)
Chuck Royce 1,200 sh (unchged)
Jim Simons Sold Out
Ray Dalio Sold Out
Jeremy Grantham 32,200 sh (-1.86%)
Pioneer Investments 843,636 sh (-9.52%)
» More
Q4 2013

VAL Guru Trades in Q4 2013

Jim Simons 169,000 sh (New)
Steven Cohen 34,332 sh (+4.67%)
Bill Frels 3,204,791 sh (+0.05%)
Jean-Marie Eveillard 851,050 sh (unchged)
Pioneer Investments 843,603 sh (unchged)
Chuck Royce 1,200 sh (unchged)
Jeremy Grantham Sold Out
Joel Greenblatt 18,420 sh (-69.53%)
Paul Tudor Jones 41,079 sh (-70.66%)
» More
» Details

Insider Trades

Latest Guru Trades with VAL

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2013-12-31 Reduce -69.53%0.08%$64.25 - $72.13 $ 73.286%18420
Joel Greenblatt 2013-09-30 Add 181.83%0.08%$61.84 - $70.77 $ 73.2812%60461
Ray Dalio 2013-09-30 Sold Out 0.01%$61.84 - $70.77 $ 73.2812%0
Scott Black 2013-06-30 Sold Out 0.87%$59.23 - $73.81 $ 73.2810%0
Joel Greenblatt 2013-06-30 Add 112.47%0.03%$59.23 - $73.81 $ 73.2810%21453
Ray Dalio 2013-06-30 New Buy0.01%$59.23 - $73.81 $ 73.2810%17011
Joel Greenblatt 2013-03-31 New Buy0.03%$59.98 - $68.32 $ 73.2814%10097
Joel Greenblatt 2012-12-31 Sold Out 0.03%$54.96 - $62.78 $ 73.2824%0
Meridian Funds 2012-09-30 Reduce -27.68%0.69%$48.9 - $58.82 $ 73.2839%1021000
Joel Greenblatt 2012-09-30 Add 66.52%0.01%$48.9 - $58.82 $ 73.2839%8386
Scott Black 2012-06-30 Add 20.24%0.17%$45.85 - $51.99 $ 73.2849%124955
Joel Greenblatt 2012-06-30 Reduce -75.14%0.06%$45.85 - $51.99 $ 73.2849%5036
Joel Greenblatt 2012-03-31 Add 60.12%0.03%$39.23 - $49.7 $ 73.2873%20261
Joel Greenblatt 2011-12-31 New Buy0.06%$30.15 - $38.97 $ 73.28108%12654
Jean-Marie Eveillard 2011-06-30 Add 21.15%0.03%$34.98 - $39.9 $ 73.2894%892570
Meridian Funds 2011-03-31 Add 5.6%0.1%$33.97 - $39.14 $ 73.2897%1611405
George Soros 2011-03-31 Sold Out $33.97 - $39.14 $ 73.2897%0
Mario Gabelli 2011-03-31 Sold Out $33.97 - $39.14 $ 73.2897%0
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Valspar Corporation

Mairs and Power on Valspar, a Long-Term Holding - May 18, 2012

Excerpted from Mairs & Powers' first quarter 2012 investor letter:

Valspar (VAL) – a long term holding

One of the keys to our success at Mairs and Power is our long-term approach to investing, and one of the keys to successful long-term investing is the ability to find companies with a sustainable growth rate. Generally, these are going to be companies that have a strong franchise or, as Harvard Business School Professor and well-known author Michael Porter phrased it, "a competitive advantage". It is easy to look at some of the holdings at Mairs and Power and see that they clearly have some sort of advantage over their competition, whether it be a superior franchise, product or cost position. Companies that come to mind include Ecolab, General Mills, and Medtronic, among others. But one of the larger holdings in the Mairs and Power Balanced Fund, and one of our most successful, is Minneapolis-based paint company Valspar Corporation. So how does a company selling a product as mundane as paint fall into the select category of having a durable competitive advantage? There is no question that Valspar has been a long-term success story. The company was founded over 200 years ago in Boston and grew steadily due to the success of innovative products such as "Valspar", the first varnish ever produced that remained clear when exposed to water. The nature and rate of growth changed dramatically in 1970 when it merged with privately-held Minnesota Paints and moved its headquarters to Minneapolis. At the time of the merger, the combined company was largely a domestic consumer paint manufacturer with sales of just over $50 million. Valspar then began a series of mergers over the next forty years that grew sales to over $4 billion, turned it into a dominant player in the industrial coatings business and greatly expanded its global presence.

Which brings us back to our original question: why has Valspar been so successful over such a long period selling a largely commodity-type product? Is this enviable track record the result of a superior product, a well-defined and exceptionally executed acquisition strategy, some other factor or a unique combination of several factors? We would argue it is the latter that accounts for much of the difference. While Valspar may not have any one overwhelming advantage over its competitors, it does compete very effectively in a number of areas. In the Paint segment, which is extremely competitive, Valspar has an advantage through its relationship with Lowes, which positions the company well for the fast-growing do-it-yourself market. In the Coatings segment Valspar is a market leader in several categories due to its technology leadership. In addition, the business is well-entrenched with its customer base because switching costs are high relative to the cost of the product. Finally, and perhaps most importantly, Valspar management has done an outstanding job of acquiring businesses that position the company in attractive markets, both in terms of new product lines as well as promising international markets. So while the "competitive advantage" of the company may not be quite as clear as that of other leading firms, we would argue it is just as significant a factor in Valspar's long history of success.

Check out latest stock trades

Ratios

vs
industry
vs
history
P/E(ttm) 22.90
VAL's P/E(ttm) is ranked higher than
56% of the 808 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 18.60 vs. VAL: 22.90 )
VAL' s 10-Year P/E(ttm) Range
Min: 11.02   Max: 23.46
Current: 22.9

11.02
23.46
P/B 5.70
VAL's P/B is ranked lower than
76% of the 960 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 1.59 vs. VAL: 5.70 )
VAL' s 10-Year P/B Range
Min: 1.05   Max: 5.87
Current: 5.7

1.05
5.87
P/S 1.60
VAL's P/S is ranked lower than
60% of the 1000 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 0.95 vs. VAL: 1.60 )
VAL' s 10-Year P/S Range
Min: 0.44   Max: 1.7
Current: 1.6

0.44
1.7
PFCF 23.20
VAL's PFCF is ranked higher than
55% of the 489 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 18.82 vs. VAL: 23.20 )
VAL' s 10-Year PFCF Range
Min: 6.94   Max: 52.47
Current: 23.2

6.94
52.47
EV-to-EBIT 15.40
VAL's EV-to-EBIT is ranked higher than
61% of the 842 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 14.88 vs. VAL: 15.40 )
VAL' s 10-Year EV-to-EBIT Range
Min: 8.1   Max: 328.8
Current: 15.4

8.1
328.8
PEG 1.50
VAL's PEG is ranked higher than
64% of the 499 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 1.51 vs. VAL: 1.50 )
VAL' s 10-Year PEG Range
Min: 1.46   Max: 10.2
Current: 1.5

1.46
10.2
Shiller P/E 40.90
VAL's Shiller P/E is ranked lower than
65% of the 442 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 22.21 vs. VAL: 40.90 )
VAL' s 10-Year Shiller P/E Range
Min: 9.97   Max: 46.19
Current: 40.9

9.97
46.19

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.30
VAL's Dividend Yield is ranked lower than
58% of the 755 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 1.80 vs. VAL: 1.30 )
VAL' s 10-Year Dividend Yield Range
Min: 1.17   Max: 3.67
Current: 1.3

1.17
3.67
Dividend Payout 0.29
VAL's Dividend Payout is ranked higher than
65% of the 638 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 0.33 vs. VAL: 0.29 )
VAL' s 10-Year Dividend Payout Range
Min: 0.19   Max: 2.72
Current: 0.29

0.19
2.72
Dividend growth (3y) 12.90
VAL's Dividend growth (3y) is ranked higher than
76% of the 431 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 10.40 vs. VAL: 12.90 )
VAL' s 10-Year Dividend growth (3y) Range
Min: 4.9   Max: 13.6
Current: 12.9

4.9
13.6
Yield on cost (5-Year) 2.23
VAL's Yield on cost (5-Year) is ranked higher than
63% of the 771 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 2.03 vs. VAL: 2.23 )
VAL' s 10-Year Yield on cost (5-Year) Range
Min: 2.01   Max: 6.3
Current: 2.23

2.01
6.3
Share Buyback Rate 3.50
VAL's Share Buyback Rate is ranked higher than
93% of the 567 Companies
in the Global Specialty Chemicals industry.

( Industry Median: -1.00 vs. VAL: 3.50 )
VAL' s 10-Year Share Buyback Rate Range
Min: 3.5   Max: -6.3
Current: 3.5

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 1.80
VAL's Price/DCF (Projected) is ranked higher than
57% of the 432 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 1.40 vs. VAL: 1.80 )
VAL' s 10-Year Price/DCF (Projected) Range
Min: 0.56   Max: 4.54
Current: 1.8

0.56
4.54
Price/Median PS Value 1.60
VAL's Price/Median PS Value is ranked lower than
67% of the 927 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 1.00 vs. VAL: 1.60 )
VAL' s 10-Year Price/Median PS Value Range
Min: 0.52   Max: 1.64
Current: 1.6

0.52
1.64
Price/Peter Lynch Fair Value 3.50
VAL's Price/Peter Lynch Fair Value is ranked lower than
67% of the 234 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 1.10 vs. VAL: 3.50 )
VAL' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.8   Max: 3.76
Current: 3.5

0.8
3.76
Earnings Yield (Greenblatt) 6.50
VAL's Earnings Yield (Greenblatt) is ranked higher than
65% of the 886 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 6.60 vs. VAL: 6.50 )
VAL' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.3   Max: 12.4
Current: 6.5

0.3
12.4
Forward Rate of Return (Yacktman) 9.39
VAL's Forward Rate of Return (Yacktman) is ranked higher than
79% of the 594 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 6.16 vs. VAL: 9.39 )
VAL' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -18.4   Max: 19.5
Current: 9.39

-18.4
19.5

Business Description

Industry: Chemicals » Specialty Chemicals
Compare:NEU, SCL, POL, CYT, LYB » details
Traded in other countries:VAP.Germany
The Valspar Corporation is a Delaware corporation and was founded in 1806. The Company is a global manufacturer and distributor of coatings and paints. It operates its business in two reportable segments: Coatings and Paints. The Company's Coatings segment includes a broad range of decorative and protective coatings for metal, wood and plastic, primarily for sale to original equipment manufacturing (OEM) customers. Products within its Coatings segment include primers, top coats, varnishes, inks, sprays, stains, fillers and other coatings used by customers in a wide range of manufacturing industries, including building products, appliances, furniture, transportation, agricultural and construction equipment, metal packaging and metal fabrication. It utilizes a wide variety of coatings technologies to meet its customers' coatings requirements, including electrodeposition, powder, solvent-based, waterborne and UV light-cured coatings. This segment includes its packaging product line and its three industrial product lines: coil, general industrial and wood. The Company's packaging product line includes coatings for the interior and exterior of metal packaging containers, principally food containers and beverage cans. It also produces coatings for aerosol and paint cans, crowns for glass bottles, plastic packaging and bottle closures. Consolidation and globalization of its customers has occurred in this product line and it has responded by offering a wide variety of packaging coatings products throughout the world. The Company's coil product line includes coatings that are applied to metal coils used to manufacture pre-engineered buildings and building components, other metal building and architectural products and appliances. The Company's general industrial product line provides customers in a wide variety of industries with a single source for powder, liquid and electrodeposition coatings technologies. The Company's Paints segment includes a wide variety of products such as paints, primers, topcoats and aerosol spray paints sold primarily through retailers and distribution networks. The Company's wood product line includes decorative and protective coatings for wood furniture, building products, cabinets and floors. The Company's Valspar, De Beer and House of Kolor brands are offered in many countries around the world. In addition to the main product lines within its two segments, it manufactures and sells specialty polymers, colorants and gelcoats, and it sells furniture protection plans under the Guardsman brand. All aspects of the coatings and paints business are highly competitive. It undertakes to comply with applicable regulations relating to protection of the environment and workers' safety.

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