Keurig Green Mountain: Sometimes Growth Is Just This Easy


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


The graphs below were produced by Capital Market Labs.

Keurig Green Mountain Inc (NASDAQ: GMCR) stock is up 465 percent in the last two years and the firm has earnings due out this Wednesday after the bell.

What’s been driving the stock?

Sometimes, it really is this easy.

Revenue (TTM) Vs. Net Income (TTM)

Since 2007, revenue has grown 16-fold ($281 million to $4.6 billion) as net income has grown 64-fold ($9 million to $582 million).

And is the company growing?

Below, one can look at Keurig Green Mountain versus peers with total asset (one-year growth) on the y-axis and gross profit (two-year CAGR) on the x-axis. For now, there’s Keurig Green Mountain and then everybody else.

 

Book Value And Operating Margin Percentage

 

The impact has been substantial, not just on the stock price, but on the book value. The blue bars represent book value and the red line represents operating revenue over operating expense. The operating margin has maintained consistent growth, as revenues have grown and that means… book value is booming.

Ophir Gottlieb can be found on Twitter @ophirgottlieb.


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


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Posted In: Long IdeasTrading IdeasGreen Mountain financialsKeurig revenues