Cash-Rich Stocks to Buy: Columbia Sportswear (COLM)
Cash-to-Market Cap: 15.0%
Columbia Sportswear Company (NASDAQ:COLM) has been selling outdoor apparel and footwear for more than 70 years. It finished Q1 2017 with $590.5 million in cash and no long-term debt.
Once upon a time, I owned a Columbia Sportswear winter jacket, but my wife bought me a fancy parka the Christmas before last from Canada Goose Holdings (NYSE:GOOS), and that was the end of me wearing Columbia products.
However, my wife’s an animal lover, and when she found out about some of Canada Goose’s animal welfare issues, she let me know in no uncertain terms I wouldn’t be receiving any more gifts from the high-end parka maker.
Back to Columbia.
“Our updated 2017 outlook anticipates up to 4 percent earnings growth on approximately 3 percent net sales growth, driven by contributions from three of our four brands and all four of our geographic regions,” CEO Tim Boyle recently said about its first-quarter results. “In the midst of changing consumer shopping patterns, our portfolio of powerful brands and strong balance sheet give us the ability to continue to drive sustainable, profitable growth.”
The key to Boyle’s statement is “sustainable, profitable growth.”
COLM is up 20% annually over the past five years — 566 basis points better than the S&P 500. You won’t go wrong owning this stock.
As of this writing, Will Ashworth did not hold a position in any of the aforementioned securities.