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Enerpac Tool Group (Enerpac Tool Group) Predictability Rank


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What is Enerpac Tool Group Predictability Rank?

1 (5)

Warren Buffett said many times that the companies he likes are:

1. Simple businesses that he understands
2. that have predictable and proven earnings and
3. with economic moat
4. those can be bought at a reasonable price.

It is hard to quantify "simple businesses that he (Buffett) understands", so we will focus on the other three characteristics instead. In GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank, we will show that the businesses that have predictable and proven earnings are usually also simple businesses that an average person could understand.

GuruFocus conducted a back test study of Warren Buffett's strategy of "buying good companies at fair prices" for the years from 1998-2008.

Enerpac Tool Group Predictability Rank Calculation

In our database there are 2403 stocks that have been traded from Jan. 2, 1998 to Aug. 31, 2008. We have the complete 10-year financial data and trading prices of these companies for this period. We rank the predictability of these companies based on the consistency of their revenue per share and EBITDA (earning before interest, tax, depreciation and amortization) per share over the past ten fiscal years, and study the correlation between the stock performances and the predictability of the business.

Our study may be subject to these biases and assumptions:

Dividend yields are not counted for investment returns
Effects of price changes due to spin-offs may not be fully adjusted
Study is subjected to survivorship bias due to de-listing, bankruptcy, LBO, M&A, etc.

The correlation between business predictability and investment returns of a company is showed below.

Correlation Between Business Predictability and Investment Returns

PredictablesNon-PredictableAll stocks
Total Number of stocks57018332403
Total Lost Money61830891
Total Lost More Than 50%18412430
Total Lost More Than 90%48690
Average Gain260.6%100.0%138.1%
Median Gain150.0%13.0%39.0%
Maximum Gain2852.0%11483.0%11483.0%
Maximum Loss-100.0%-100.0%-100.0%
Annualized Average Gain12.7%6.7%8.4%
Annualized Median Gain8.9%1.1%3.1%


















For the 570 predictable companies, we have seen strong correlation between the predictability of businesses and the stock performances over the past 10 years, regardless of the valuation of business at 1998. Accordingly, we have ranked the business predictability from 5-star to 1-star, as shown in this table.

Predictability Rank5-Star4.5-Star4-Star3.5-Star3-Star2.5-Star2-Star1-Star (non-predictable)Average among all
% Out of All 2403 Stocks 3.3% 2.9% 3.7% 3.3% 3.3% 3.7% 3.3% 76.3% 100%
% that are in Loss (10y) 3% 10% 8% 9% 11% 18% 16% 45% 37%
Average Gain (10y) 364.6% 330.9% 278.0% 235.1% 243.5% 227.8% 154.8% 100.0% 138.1%
Median Gain (10y) 238.5% 193.5% 171.0% 159.0% 132.5% 113.5% 87.0% 13.0% 39.0%
Maximum Gainer 2228.0% 2547.0% 2452.0% 2852.0% 2432.0% 1892.0% 1807.0% 11483.0% 11483.0%
Maximum Loser -82.0% -53.0% -67.0% -100.0% -83.0% -100.0% -78.0% -100.0% -100.0%
Annualized Average Gain 15.4% 14.6% 13.2% 12.0% 12.2% 11.7% 9.1% 6.7% 8.4%
Annualized Median Gain 12.1% 10.6% 9.8% 9.3% 8.2% 7.3% 6.0% 1.1% 3.1%
















For detailed information about each predictability rank, please go to GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank

Also read:

Part II: What worked in the market from 1998-2008? Part II: Role of Valuations
Part III: Intrinsic Value, Discounted Cash Flow and Margin of Safety

Enerpac Tool Group Predictability Rank Related Terms

Thank you for viewing the detailed overview of Enerpac Tool Group's Predictability Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

Enerpac Tool Group (Enerpac Tool Group) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Enerpac Tool Group Corp (NYSE:EPAC) » Definitions » Predictability Rank
Comparable Companies
B SXI DNOW TNC HLIO MWA MIR THR GRC KRNT GE XTER:SIE XPAR:SU ETN ITW OSTO:ATCO A PH XKRX:373220 EMR AME
Traded in Other Exchanges
PW9:Germany
Address
N86 W12500 Westbrook Crossing, Menomonee Falls, WI, USA, 53051
Website
https://www.enerpactoolgroup.com
Enerpac Tool Group, previously known as Actuant, provides high-precision tools, controlled-force products, and solutions for precise heavy lifting. The company operates through two segments: industrial tools and services and other. It categorizes its revenue into two parts: product sales and services, which include manpower services and rentals. Product sales is the largest contributor to the company's total revenue. Geographically, the company operates in the United States, Asia, Australia, Europe, Middle East, and other areas. The U.S. makes up the largest contribution to the company's total revenue.
Executives
James Denis officer: EVP, GC and Secretary N86 W12500 WESTBROOK CROSSING, MENOMONEE FALLS WI 53051
Benjamin James Topercer officer: EVP - Chief HR Officer N86 W12500 WESTBROOK CROSSING, MENOMONEE FALLS WI 53051
Anthony Peter Colucci officer: EVP - CFO N86 W12500 WESTBROOK CROSSING, MENOMONEE FALLS WI 53051
Lynn C Minella director 5757 N GREEN BAY AVE, MILWAUKEE WI 53209
Danny L Cunningham director C/O ACTUANT CORPORATION, N86 W12500 WESTBROOK CROSSING, MENOMONEE FALLS WI 53051
Ferland E James Jr director ALVARADO SQUARE, MS 2850, ALBUQUERQUE NM 87158
Simmons Sidney S. Ii director 562 PARK STREET, SUITE 300, JACKSONVILLE FL 32204
Markus Limberger officer: EVP, Operations N86 W12500 WESTBROOK CROSSING, MENOMONEE FALLS WI 53051
Paul Sternlieb officer: President and CEO 70 WEST MADISON SUITE 4400, CHICAGO IL 60602
Healy Colleen director 11120 FOUR POINTS DRIVE, SUITE 100, AUSTIN TX 78726
Ricky T Dillon officer: Executive Vice President - CFO ONE SOUTH WACKER DRIVE, SUITE 1000, CHICAGO IL 60606
Scott Matthew Vuchetich officer: EVP, Mkg and Pres-Americas N86 W12500 WESTBROOK CROSSING, MENOMONEE FALLS WI 53051
Richard D Holder director EATON CENTER, 1111 SUPERIOR AVENUE, CLEVELAND OH 44114
Bryan Johnson officer: Controller and PAO N86 W112500 WESTBROOK CROSSING, MENOMONEE FALLS WI 53051
Randal W Baker director, officer: Pres. and CEO 100 E WISCONSIN AVENUE, SUITE 2780, MILWAUKEE WI 53202