Introduction
In this article, I argue that Columbia Sportswear (COLM) provides a unique combination of strong fundamentals, growth prospects and moderate valuation. With its long history of earnings and dividends, unlevered balance sheet, and strong free cash flow, the company deserves the attention of investors. While sales took a hit during the recession, the cyclical nature of the company's business indicates that revenues should soon recover to pre-recession levels as the global economy continues to improve and management expands into new and largely untapped markets. Columbia's strong and well-established global brand provides it with a significant advantage in the outdoor apparel market over smaller and lesser known competitors.cheap nike nfl jerseys
Business Overview
Columbia Sportswear is a global leader in the outdoor apparel and footwear market. The company designs, sources, markets and distributes active outdoor apparel, footwear, accessories and equipment in the United States, Latin America, the Asia Pacific, Europe, the Middle East, Africa and Canada. The company provides its products for outdoor activities such as skiing, snowboarding, hiking, camping, hunting, water sports and adventure travel under four primary brands: Columbia, Mountain Hardwear, Sorel and Montrail. Columbia's products are designed to protect consumers from the elements and make outdoor activities more enjoyable using proprietary innovative technologies. Columbia constantly invests in research and development and consults with specialists in various engineering fields to develop and maintain the technologies and designs that have helped build brand loyalty and recognition with consumers throughout the world. The company sells its products through wholesale distribution channels, direct-to-consumer channels, independent distributors and licensees. The company also operates its very own network of branded and outlet retail stores that provide high brand visibility and build stronger brand loyalty with consumers over time.
Strong Balance Sheet
As of June 30, 2013, Columbia had over $340 million in cash and zero long-term debt. With ~34 million shares outstanding, that's about $10 of cash per share, which comprises ~16% of the company's total market capitalization. With a working capital position of over $850 million and no long-term debt, the company is in an excellent position for investment in further expansion, as it has a comfortable working capital cushion and can tap the credit markets with relative ease. With no preferred stock ahead of the common, shareholders are in a prime position to benefit from an increased dividend or increased profit margins.cheap jerseys from china