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| WIND RIVER SYS (WIND) |  | | Company Name: | WIND RIVER SYS | | Ticker Symbol: | WIND | | Industry: | COMPUTER-SERVICES | | Company Website: | http://www.windriver.com | | Summary: Wind River Systems, Inc. develops, markets, supports and provides consulting services for advanced software operating systems and development tools th...more | |
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Company Overview and History
| Company Overview |
Wind River Systems, Inc. develops, markets, supports and provides consulting services for advanced software operating systems and development tools that allow customers to create complex, robust, real-time software applications for embedded computers. An embedded computer is a microprocessor that is incorporated into a larger device and is dedicated to responding to external events by performing specific tasks quickly, predictably, and reliably.
| | Source: Zacks Investment Research |  |
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Recent Events
Reasons to Buy WIND RIVER SYS
Investors Give Reasons to Buy
| If You Think WIND RIVER SYS Is a Buy, Post Your Reasons Below | |
Analysts Recommending Buy
Reasons to Sell WIND RIVER SYS
Investors Give Reasons to Sell
| If You Think WIND RIVER SYS Is a Sell, Post Your Reasons Below | |
Analysts Recommending Sell
Reasons to Hold WIND RIVER SYS
Investors Give Reasons to Hold
| If You Think WIND RIVER SYS Is a Hold, Post Your Reasons Below | |
Analysts Recommending Hold
How Can I Decide if WIND RIVER SYS Is a Buy or a Sell?
| | How Can I Decide if WIND RIVER SYS Is a Buy or a Sell? | Follow the Experts...
| | There are 1 individual(s) in the US who know more about WIND RIVER SYS and its stock price than almost anyone else These 1 individual(s) are the 1 brokerage analysts who follow WIND RIVER SYS and whose research is discussed above by Wiki posters who receive the research from these brokerage firms To decide if you want to buy WIND RIVER SYS, you could read the discussions above and see if you find a bull or bear argument for WIND RIVER SYS that you think is compelling – or you might toss a coin. To help you evaluate the credibility of the arguments made by an analyst, we have displayed the Zacks All Star Rating of the analyst after his/her name. Zacks rates analysts as 1, 2, 3, 4, or 5 STAR analysts based on the performance of their stock recommendations. The analysts with 5 STAR ratings have had the best performance. For more information on these Zacks Analyst ratings, go to http://www.zacks.com | |
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...or Make Your Own Non-Consensus Decision
| | However, we believe that there is a better way to make stock selection decisions, and this Wiki is dedicated to this technique. The better way – which is taught to all MBA students, and used by professional investors – is not easy. But it is one of the few investment techniques that actually does work. The better way requires you to find errors in the consensus forecasts of revenue and EPS. Until the creation of this Wiki, it has been virtually impossible for an individual investor to develop accurate non consensus revenue and earnings forecasts because no one individual has had enough information to accurately out-forecast the Wall Street analysts.
However, by using the Wiki to pool together the collaborative intelligence of large numbers of individuals who are familiar with the COMPUTER-SERVICES Industry, with WIND RIVER SYS, and with its suppliers and customers, we as a group do have a realistic chance of finding that nugget of accurate non-consensus information.
Warren Buffett finds these nuggets. This Wiki can help you find your own nuggets.
But this process can only work for those companies and industries with which you are very familiar. To apply this process to WIND RIVER SYS, you need to focus on 2 questions:- Do I agree with the consensus estimate of the future revenue of WIND RIVER SYS?
- Do I agree with the consensus estimates of the EPS of WIND RIVER SYS?
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How Can I Find Errors in the Consensus Forecasts for WIND RIVER SYS?
| How Can I Find Errors in the Consensus Forecasts for WIND RIVER SYS? | The following sections are designed to help Wiki users identify errors in the consensus revenue forecasts for the major WIND RIVER SYS products. Below each consensus revenue forecast is a Wiki section reserved for users to discuss why these consensus forecasts may be high or low.
All consensus forecasts are provided by Zacks Investment Research. |
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Consensus Forecast of WIND RIVER SYS Revenue in Millions
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Jan-07 |
Jan-08 |
Jan-09 |
Jan-10 |
Jan-11 |
11/07 |
| $285.30 |
$328.63 |
$359.79 |
$353.29 |
$380.26 |
7.4% |
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Consensus Forecast of WIND RIVER SYS EPS
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Jan-05 |
Jan-06 |
Jan-07 |
Jan-08 |
Jan-09 |
Jan-10 |
Jan-11 |
| $0.14 |
$0.29 |
$0.02 |
$0.06 |
$0.31 |
$0.41 |
$0.43 |
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What if I Agree with Consensus Forecasts?
| What if I Agree with Consensus Forecasts? | You Can Still Make an Effective Investment Decision
| | If you agree with the above consensus forecasts of revenue and of EPS, you can still make an effective investment decision by determining that a relative valuation metric is out of line. Perhaps because of events taking place in the industry, or with other companies, you may feel that WIND RIVER SYS is either undervalued or overvalued, should the consensus estimates of revenue and EPS be realized. This section of the Wiki helps you think about valuation by comparing WIND RIVER SYS to some of its peers using a number of standard relative valuation metrics. This section also includes a simple discounted cash flow model for WIND RIVER SYS based on the consensus forecasts. The following table should be your starting point. This shows P/E, P/Sales, and P/Cash Flow for WIND RIVER SYS and for comparable companies. |
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| WIND (WIND RIVER SYS) |
$354.00 |
$10.87 |
7.8% |
20% |
28.27 |
2.5 |
23.3 |
Industry Mean |
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13% |
15% |
13.72 |
1.1 |
7.1 |
| S&P 500 |
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39% |
11% |
15.87
| 1.5 |
9.4 |
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CTGX (COMP TASK) |
$341.00 |
$7.74 |
11.4% |
20% |
15.80 |
0.3 |
11.3 |
INTX (INTERSECTNS INC) |
$363.00 |
($19.97) |
13.2% |
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0.2 |
0.8 |
NCIT (NCI INC-CL A) |
$404.00 |
$18.08 |
18.8% |
17% |
21.36 |
1.0 |
19.7 |
CF is operating cash flow plus after-tax interest expense. |
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| Discussion by Wiki Users of Relative Valuation | | No comments yet. Be the first | | |
Dividend Discount Model for WIND RIVER SYS
| | The two major techniques used by fundamental analysts to evaluate the value of a stock are the relative valuation metrics such as PE discussed above and the dividend discount model (DDM) or discounted cash flow model (DCF). More information about these valuation-related topics is available here. This reference answers most of the questions investors have when they first encounter these discount approaches to determining value, such as: - What is the discount rate?
- Why does the DDM discount earnings and not dividends?
- How can I use a DDM if the company does not pay dividends?
- How do I set the terminal value? (applies only to DCF)
- How do I calculate cash flow to use the DCF model?
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What Do Insiders and Institutional Owners Say about WIND RIVER SYS?
| Insiders and Institutional Owners Discuss Issues Here | | No comments yet. Be the first | | |
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Industry Analysis
Industry Outlook for Major COMPUTER-SERVICES Companies
| | adad sad sad sa The outlook for the software industry is Neutral. The last few quarters have shown signs of demand stabilization and cost cutting initiatives. While areas like enterprise resource planning systems, supply chain management software, and customer relationship management software have been hit hard by weak IT spending, other niches have held up relatively well. These include gaming, video editing and security software. Government spending also has been supportive to the software industry, and in particular, defense-related spending continues to be a favorable market. With several important software categories reaching maturity, topline growth for the industry is likely to remain below historical levels, even after the industry recovers. Nevertheless, long-term growth prospects are still modestly above average. In addition, several of the group's top companies possess stellar fundamentals, including high profit margins, pristine balance sheets and cash flow well in excess of capital requirements.
| Last edited Thu Aug 20, 2009 02:02 PM
by SSen (Zacks Investment Research) |  |
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WIND RIVER SYS Role in the COMPUTER-SERVICES Industry
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Company Specific Investment Issues
The issues discussed in the sections below generally comprise the bulk of the content in a typical research report. Understanding these subjects is certainly important when making an investment decision for WIND RIVER SYS. However, to provide the most value to Wiki users as you read and contribute to these discussions, please try and tie your comments back to their specific impact on forecasts of future Revenue, Net Income, EPS, or Cash Flow. | Discussion about Capital Structure / Solvency / Cash Flows Issues | | No comments yet. Be the first | | |
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| Discussion about Governance / Social Responsibility / Treatment of Employees | | No comments yet. Be the first | | |
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| Acquisitions/Divestures/Joint Ventures/Hot New Products/Exciting Opportunities | | No comments yet. Be the first | | |
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| Discussion about Upcoming Events to Watch for That Will Impact Stock Price | | No comments yet. Be the first | | |
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Created by: WikiMigrationBot.
Last Modification: Wednesday 24 of June, 2009 16:09:12 CDT by WikiMigrationBot.
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