B/E Aerospace Inc (BEAV), Tiffany & Co. (TIF): Dan Loeb’s Leading Picks for the Long Run

Page 1 of 2

In the first quarter of 2013, Dan Loeb seemed to be B/E Aerospace Inc (NASDAQ:BEAV) bullish on the aerospace & defense industry as well as the jewelry retail industry. He bought 2 million shares of B/E Aerospace Inc (NASDAQ:BEAV) and 2.7 million shares of Tiffany & Co. (NYSE:TIF). Tiffany & Co. (NYSE:TIF) B/E Aerospace Inc (NASDAQ:BEAV) positions accounted for 3.5% and 2.3%, respectively, of his total portfolio as of March 2013. Let’s take a closer look at these two companies to determine their attractiveness.

B/E Aerospace Inc (NASDAQ:BEAV)

B/E Aerospace – a cash cow and a global leader in the aerospace industry

B/E Aerospace Inc (NASDAQ:BEAV) is considered the global leader in cabin interior products for commercial aircraft. It also distributes aerospace fasteners and provides logistic services to aerospace industries. The company operates in three main business segments: Commercial Aircraft, Consumables Management, and Business Jet.

Most of its revenue, $1.55 billion, or 50.2% of the total revenue, was generated from the Commercial Aircraft segment, while the Consumables Management segment ranked second with $1.17 billion in sales. The Commercial Aircraft segment was also the biggest earnings contributor, with $271.3 million in profits in 2012 while the operating earnings of the Consumables Management and the Business Jet segments were $216.7 million and $52 million, respectively. B/E Aerospace Inc (NASDAQ:BEAV)’s biggest customer was The Boeing Company (NYSE:BA), accounting for 11.1% of its total net sales.

In the past five years, B/E Aerospace Inc (NASDAQ:BEAV) has generated consistently positive cash flow. While the operating cash flow increased from $116 million in 2008 to $355 million in 2012, the free cash flow nearly tripled from $84 million to $230 million. The market values the company quite expensively at 12.30 times EV/EBITDA.

Tiffany – a global leader in jewelry retailing

Tiffany & Co. (NYSE:TIF) is a famous jewelry and specialty retailer in the U.S., operating around 275 retail locations in the Americas, Asia-Pacific, Japan, and Europe. Most of its revenue, or 30% of the total 2012 revenue, was generated via sales of silver, gold & RUBEDO metal jewelry. Engagement jewelry & wedding bands sales ranked second, accounting for 29% of the total revenue in 2012. Tiffany & Co. (NYSE:TIF) turned in a great operating performance with high comparable store sales growth of 16% in 2011. However, it seems to be sluggish this year, with comparable store sales staying flat due to the decline in Americas and Europe, offsetting by the increase in Asia-Pacific and Japan.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!