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Kyle Ferguson
Kyle Ferguson
Articles (522)  | Author's Website |

Bill Nygren Adds Stake in Fiat Chrysler Automobiles

The 7th largest automaker in the world has steady revenue growth

May 30, 2016 | About:

Bill Nygren (Trades, Portfolio) increased his stake in Fiat Chrysler Automobiles NV (FIATY) during the first quarter.

Fiat Chrysler Automobiles is the seventh-largest automaker in the world. It designs, engineers, manufactures and sells passenger cars, light commercial vehicles, components, and production systems worldwide. The group’s automotive brands are Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Lancia, Ram, SRT and Maserati, in addition to Mopar, the parts and service brand.

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Fiat Chrysler Automobiles has a market cap of $11.75 billion, a P/E ratio of 13.06, an enterprise value of $20.17 billion and a P/B ratio of 0.66.

Nygren is a contrarian who researches companies diligently for hidden value. He may have added to his stake in Fiat Chrysler Automobiles for the following reasons.

The company has increased its revenue per share at a consistent rate of 7% annually over the previous 10 years.

The company has a Beneish M-Score of -2.71a ccording to GuruFocus, indicating that it’s not manipulating its financial results.

Fiat Chrysler Automobiles is also the seventh-largest automaker in the world. The company Sloan ratio is 0.44%, indicating that there is no funny business going on with its accruals.

The P/S ratio is 0.09, which ranks it in the top 1% of the 88 companies in the auto manufacturers industry.

Fiat Chrysler Automobiles currently has $980 million in free cash flow. The current price to free cash flow ratio is 10.47, which ranks Fiat Chrysler Automobiles in the top 2% of the companies in the auto manufacturers industry.

Below is a Peter Lynch Chart for Fiat Chrysler Automobiles.

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Nygren's investment career began shortly after he graduated from the University of Minnesota in 1980 with a degree in accounting and then a master's in finance from the University of Wisconsin in 1981. In 1983, Nygren joined Harris Associates' investment team.

Harris Associates is currently the investment adviser to the Oakmark Funds, which was founded in 1991. Nygren has been the portfolio manager of the Oakmark Fund since its inception in 1996, the Oakmark Select Fund since 2000, and the Oakmark Global Select Fund since 2006. Nygren has received multiple awards throughout his investment career, most notably Morningstar’s Domestic Stock Manager of the Year award in 2001.

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About the author:

Kyle Ferguson
Kyle Ferguson is an investor, author of The Christian Bubble, and he is a world-renowned human and animal rights activist, and the co-founder of The Light Movement. He is outspoken, fearless, and relentless. Kyle lives in Ontario, Canada and he is dedicated to making the world a better place with love and light.

Visit Kyle Ferguson's Website


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