Solera Holdings, Inc. (SLH)
The Company is a global provider of software and services to the automobile insurance claims processing industry. Its customers include insurance companies, collision repair facilities, independent assessors and automotive recyclers.
Recs
5/21/9 IBD SRH > 0, AND [P/E < 20 OR OLE > <35>]
Recs
Too much debt, unrealistic growth expectations as the car insurance business weakens, cost of repairing is skyrocketing, international business will collapse faster as they don't have the "car" repair culture we in North America do.
Recs
hey money is tight and so are car payments
why not just total your car and solve both problems
Recs
Way Overpriced. They have very little real equity to speak of - they are currently priced at 4X Book value however the bulk of their assets are Goodwill and Intangibles. Their only positive is their International growth but they would need to grow at incredible rate to justify a market cap of close to 2 Billion on sales of 500 Million with no assets behind them. In addition, The CCC Mitchell Merger in the US will kill their US Business. Finally, they serve the Collision Repair Industry so if gas is $4.00/Gallon and people are driving less their Auto Body customers make less money and have less need for their services and their Insurance customers have less claims and also have less need for their services.
Recs
Thier internation growth is exploding. They have meet anaylists expectation 2 quaters in a row, and continue to be the dominant market leader in claims services. Their stock price has held stong through a very difficult market. I'm riding this one to the moon.
Recs
P/E = -9.3x v.17.2x for S&P 500
Price/Sales = 3.6x v 1.5x
Profit Margin = -17.1% v 7.8%
Return on Equity = -1.8% v 15.6%
Return on Assets = -1.5% v 3.9%
Long Term Growth Rate = 15.0% v 12.7%
PEG Ratio = -0.6x v 1.4x
Recs
Exposure to BRIC, aggressively pushing for shareholder value
Recs
A relatively young company with fresh ideas and a driving ambition to 'be the best'. Their product range includes several 'best of breed', and they are led by an experienced executive.

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