Offshore
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Stock Analysis Compilation
Black Bear VP on Paramount Resources $POU CN
Thesis: Paramount Resources is focused on reinvesting in growth opportunities, with a strong balance sheet that positions it to weather energy sector volatility and generate high free cash flow yields
(Extract from their Q3 letter) https://t.co/fcvBMZhZ5g
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Black Bear VP on Paramount Resources $POU CN
Thesis: Paramount Resources is focused on reinvesting in growth opportunities, with a strong balance sheet that positions it to weather energy sector volatility and generate high free cash flow yields
(Extract from their Q3 letter) https://t.co/fcvBMZhZ5g
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Offshore
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Quiver Quantitative
Raytheon, $RTX, has agreed to pay $950M to resolve charges of defrauding the US Department of Defense.
Last year, we reported on a purchase of $RTX by a member of the Senate Armed Services Committee.
It has risen 78% since then.
Up another 1% today, after settling. https://t.co/hwZ1ssbt2n
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Raytheon, $RTX, has agreed to pay $950M to resolve charges of defrauding the US Department of Defense.
Last year, we reported on a purchase of $RTX by a member of the Senate Armed Services Committee.
It has risen 78% since then.
Up another 1% today, after settling. https://t.co/hwZ1ssbt2n
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Dimitry Nakhla | Babylon Capital®
RT @DimitryNakhla: A sober valuation analysis on $INTU 🧘🏽♂️
•NTM P/E Ratio: 31.89x
•10-Year Mean: 33.66x
•NTM FCF Yield: 3.44%
•10-Year Mean: 3.70%
As you can see, $INTU appears to be trading somewhere near fair value & over fair value
Going forward, investors can receive ~5% MORE in earnings per share & ~7# LESS in FCF per share 🧠***
Before we get into valuation, let’s take a look at why $INTU is a good business
BALANCE SHEET✅
•Cash & Short-Term Inv: $4.07B
•Long-Term Debt: $5.54B
$INTU has a strong balance sheet, an A- S&P Credit Rating & 20x FFO Interest Coverage
RETURN ON CAPITAL✅
•2019: 43.9%
•2020: 25.2%
•2021: 19.7%
•2022: 10.7%
•2023: 13.1%
•2024: 15.5%
RETURN ON EQUITY✅
•2019: 47.4%
•2020: 41.2%
•2021: 27.5%
•2022: 15.7%
•2023: 14.1%
•2024: 16.6%
$INTU has strong return metrics, highlighting the financial efficiency of the business
REVENUES✅
•2014: $4.51
•2024: $16.29B
•CAGR: 13.70%
FREE CASH FLOW✅*
•2014: $1.34B
•2024: $4.69B
•CAGR: 13.34%
NORMALIZED EPS✅
•2014: $16.94
•2024: $3.49
•CAGR: 17.11%
PAID DIVIDENDS✅
•2014: $0.76
•2024: $3.60
•CAGR: 16.82%
SHARE BUYBACKS🆗
•2014 Shares Outstanding: 291.00M
•LTM Shares Outstanding: 284.00M
By reducing its shares outstanding ~2.4%, $INTU increased its EPS by ~2.5% (assuming 0 growth)
MARGINS✅
•LTM Gross Margins: 79.6%
•LTM Operating Margins: 23.7%
•LTM Net Income Margins: 18.2%
***NOW TO VALUATION 🧠
As stated above, investors can expect to receive ~5% MORE in EPS & ~7% LESS in FCF per share
Using Benjamin Graham’s 2G rule of thumb, $INTU has to grow earnings at a 15.95% CAGR over the next several years to justify its valuation
Today, analysts anticipate 2025 - 2027 EPS growth over the next few years to be less than the (15.95%) required growth rate:
2025E: $19.34 (14.1% YoY) *FY Jul
2026E: $22.24 (15.0% YoY)
2027E: $25.41 (14.3% YoY)
$INTU has a great track record of meeting analyst estimates ~2 years out, but let’s assume $INTU ends 2027 with $25.41 in EPS & see its CAGR potential assuming different multiples:
32x P/E: $708.16💵 … ~10.9% CAGR
31x P/E: $686.03💵 … ~9.6% CAGR
30x P/E: $663.90💵 … ~8.4% CAGR
29x P/E: $641.77💵 … ~7.1% CAGR
While it’s certainly reasonable for $INTU to trade for 32x, I wouldn’t want to rely on that assumption as it doesn’t leave us with a substantial margin of safety (given today’s $619💵 share price)
I’d consider $INTU a strong purchase with a substantial margin of safety closer to $570💵, or ~29.40 NTM earnings (~8% below todays price)
Given today’s estimates, at $570💵 I can reasonably expect ~10.3% CAGR while assuming a 29x end multiple
#stocks #investing
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𝐃𝐈𝐒𝐂𝐋𝐎𝐒𝐔𝐑𝐄‼️: 𝐓𝐡𝐢𝐬 𝐢𝐬 𝐍𝐎𝐓 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐀𝐝𝐯𝐢𝐜𝐞. 𝐁𝐚𝐛𝐲𝐥𝐨𝐧 𝐂𝐚𝐩𝐢𝐭𝐚𝐥® 𝐚𝐧𝐝 𝐢𝐭𝐬 𝐫𝐞𝐩𝐫𝐞𝐬𝐞𝐧𝐭𝐚𝐭𝐢𝐯𝐞𝐬 𝐦𝐚𝐲 𝐡𝐚𝐯𝐞 𝐩𝐨𝐬𝐢𝐭𝐢𝐨𝐧𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐬𝐞𝐜𝐮𝐫𝐢𝐭𝐢𝐞𝐬 𝐝𝐢𝐬𝐜𝐮𝐬𝐬𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭.
𝐓𝐡𝐞 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭 𝐢𝐬 𝐢𝐧𝐭𝐞𝐧𝐝𝐞𝐝 𝐟𝐨𝐫 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐩𝐮𝐫𝐩𝐨𝐬𝐞𝐬 𝐨𝐧𝐥𝐲 𝐚𝐧𝐝 𝐬𝐡𝐨𝐮𝐥𝐝 𝐧𝐨𝐭 𝐛𝐞 𝐜𝐨𝐧𝐬𝐭𝐫𝐮𝐞𝐝 𝐚𝐬 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐚𝐝𝐯𝐢𝐜𝐞 𝐭𝐨 𝐦𝐞𝐞𝐭 𝐭𝐡𝐞 𝐬𝐩𝐞𝐜𝐢𝐟𝐢𝐜 𝐧𝐞𝐞𝐝𝐬 𝐨𝐟 𝐚𝐧𝐲 𝐢𝐧𝐝𝐢𝐯𝐢𝐝𝐮𝐚𝐥 𝐨𝐫 𝐬𝐢𝐭𝐮𝐚𝐭𝐢𝐨𝐧. 𝐏𝐚𝐬𝐭 𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐢𝐬 𝐧𝐨 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞 𝐨𝐟 𝐟𝐮𝐭𝐮𝐫𝐞 𝐫𝐞𝐬𝐮𝐥𝐭𝐬.
𝐈𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭 𝐡𝐚𝐬 𝐛𝐞𝐞𝐧 𝐨𝐛𝐭𝐚𝐢𝐧𝐞𝐝 𝐟𝐫𝐨𝐦 𝐬𝐨𝐮𝐫𝐜𝐞𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞𝐝 𝐭𝐨 𝐛𝐞 𝐫𝐞𝐥𝐢𝐚𝐛𝐥𝐞, 𝐛𝐮𝐭 𝐢𝐬 𝐧𝐨𝐭 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞𝐝 𝐚𝐬 𝐭𝐨 𝐜𝐨𝐦𝐩𝐥𝐞𝐭𝐞𝐧𝐞𝐬𝐬 𝐨𝐫 𝐚𝐜𝐜𝐮𝐫𝐚𝐜𝐲.
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RT @DimitryNakhla: A sober valuation analysis on $INTU 🧘🏽♂️
•NTM P/E Ratio: 31.89x
•10-Year Mean: 33.66x
•NTM FCF Yield: 3.44%
•10-Year Mean: 3.70%
As you can see, $INTU appears to be trading somewhere near fair value & over fair value
Going forward, investors can receive ~5% MORE in earnings per share & ~7# LESS in FCF per share 🧠***
Before we get into valuation, let’s take a look at why $INTU is a good business
BALANCE SHEET✅
•Cash & Short-Term Inv: $4.07B
•Long-Term Debt: $5.54B
$INTU has a strong balance sheet, an A- S&P Credit Rating & 20x FFO Interest Coverage
RETURN ON CAPITAL✅
•2019: 43.9%
•2020: 25.2%
•2021: 19.7%
•2022: 10.7%
•2023: 13.1%
•2024: 15.5%
RETURN ON EQUITY✅
•2019: 47.4%
•2020: 41.2%
•2021: 27.5%
•2022: 15.7%
•2023: 14.1%
•2024: 16.6%
$INTU has strong return metrics, highlighting the financial efficiency of the business
REVENUES✅
•2014: $4.51
•2024: $16.29B
•CAGR: 13.70%
FREE CASH FLOW✅*
•2014: $1.34B
•2024: $4.69B
•CAGR: 13.34%
NORMALIZED EPS✅
•2014: $16.94
•2024: $3.49
•CAGR: 17.11%
PAID DIVIDENDS✅
•2014: $0.76
•2024: $3.60
•CAGR: 16.82%
SHARE BUYBACKS🆗
•2014 Shares Outstanding: 291.00M
•LTM Shares Outstanding: 284.00M
By reducing its shares outstanding ~2.4%, $INTU increased its EPS by ~2.5% (assuming 0 growth)
MARGINS✅
•LTM Gross Margins: 79.6%
•LTM Operating Margins: 23.7%
•LTM Net Income Margins: 18.2%
***NOW TO VALUATION 🧠
As stated above, investors can expect to receive ~5% MORE in EPS & ~7% LESS in FCF per share
Using Benjamin Graham’s 2G rule of thumb, $INTU has to grow earnings at a 15.95% CAGR over the next several years to justify its valuation
Today, analysts anticipate 2025 - 2027 EPS growth over the next few years to be less than the (15.95%) required growth rate:
2025E: $19.34 (14.1% YoY) *FY Jul
2026E: $22.24 (15.0% YoY)
2027E: $25.41 (14.3% YoY)
$INTU has a great track record of meeting analyst estimates ~2 years out, but let’s assume $INTU ends 2027 with $25.41 in EPS & see its CAGR potential assuming different multiples:
32x P/E: $708.16💵 … ~10.9% CAGR
31x P/E: $686.03💵 … ~9.6% CAGR
30x P/E: $663.90💵 … ~8.4% CAGR
29x P/E: $641.77💵 … ~7.1% CAGR
While it’s certainly reasonable for $INTU to trade for 32x, I wouldn’t want to rely on that assumption as it doesn’t leave us with a substantial margin of safety (given today’s $619💵 share price)
I’d consider $INTU a strong purchase with a substantial margin of safety closer to $570💵, or ~29.40 NTM earnings (~8% below todays price)
Given today’s estimates, at $570💵 I can reasonably expect ~10.3% CAGR while assuming a 29x end multiple
#stocks #investing
___
𝐃𝐈𝐒𝐂𝐋𝐎𝐒𝐔𝐑𝐄‼️: 𝐓𝐡𝐢𝐬 𝐢𝐬 𝐍𝐎𝐓 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐀𝐝𝐯𝐢𝐜𝐞. 𝐁𝐚𝐛𝐲𝐥𝐨𝐧 𝐂𝐚𝐩𝐢𝐭𝐚𝐥® 𝐚𝐧𝐝 𝐢𝐭𝐬 𝐫𝐞𝐩𝐫𝐞𝐬𝐞𝐧𝐭𝐚𝐭𝐢𝐯𝐞𝐬 𝐦𝐚𝐲 𝐡𝐚𝐯𝐞 𝐩𝐨𝐬𝐢𝐭𝐢𝐨𝐧𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐬𝐞𝐜𝐮𝐫𝐢𝐭𝐢𝐞𝐬 𝐝𝐢𝐬𝐜𝐮𝐬𝐬𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭.
𝐓𝐡𝐞 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭 𝐢𝐬 𝐢𝐧𝐭𝐞𝐧𝐝𝐞𝐝 𝐟𝐨𝐫 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐩𝐮𝐫𝐩𝐨𝐬𝐞𝐬 𝐨𝐧𝐥𝐲 𝐚𝐧𝐝 𝐬𝐡𝐨𝐮𝐥𝐝 𝐧𝐨𝐭 𝐛𝐞 𝐜𝐨𝐧𝐬𝐭𝐫𝐮𝐞𝐝 𝐚𝐬 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐚𝐝𝐯𝐢𝐜𝐞 𝐭𝐨 𝐦𝐞𝐞𝐭 𝐭𝐡𝐞 𝐬𝐩𝐞𝐜𝐢𝐟𝐢𝐜 𝐧𝐞𝐞𝐝𝐬 𝐨𝐟 𝐚𝐧𝐲 𝐢𝐧𝐝𝐢𝐯𝐢𝐝𝐮𝐚𝐥 𝐨𝐫 𝐬𝐢𝐭𝐮𝐚𝐭𝐢𝐨𝐧. 𝐏𝐚𝐬𝐭 𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐢𝐬 𝐧𝐨 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞 𝐨𝐟 𝐟𝐮𝐭𝐮𝐫𝐞 𝐫𝐞𝐬𝐮𝐥𝐭𝐬.
𝐈𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭 𝐡𝐚𝐬 𝐛𝐞𝐞𝐧 𝐨𝐛𝐭𝐚𝐢𝐧𝐞𝐝 𝐟𝐫𝐨𝐦 𝐬𝐨𝐮𝐫𝐜𝐞𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞𝐝 𝐭𝐨 𝐛𝐞 𝐫𝐞𝐥𝐢𝐚𝐛𝐥𝐞, 𝐛𝐮𝐭 𝐢𝐬 𝐧𝐨𝐭 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞𝐝 𝐚𝐬 𝐭𝐨 𝐜𝐨𝐦𝐩𝐥𝐞𝐭𝐞𝐧𝐞𝐬𝐬 𝐨𝐫 𝐚𝐜𝐜𝐮𝐫𝐚𝐜𝐲.
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Offshore
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App Economy Insights
$TSM TSMC Q3 FY24:
• Revenue +36% Y/Y $23.5B ($0.2B beat).
• Gross margin 58% (+4pp Y/Y).
• Operating margin 47% (+6pp Y/Y).
• Capex $6.4B.
• EPADR $1.94 ($0.15 beat).
3nm & 5nm were 20% & 32% of revenue. https://t.co/ZItyG9XEKM
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$TSM TSMC Q3 FY24:
• Revenue +36% Y/Y $23.5B ($0.2B beat).
• Gross margin 58% (+4pp Y/Y).
• Operating margin 47% (+6pp Y/Y).
• Capex $6.4B.
• EPADR $1.94 ($0.15 beat).
3nm & 5nm were 20% & 32% of revenue. https://t.co/ZItyG9XEKM
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Offshore
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Investing visuals
Strong earnings by $TSM, stock is up +4% overnight, hitting an all-time-high🫡
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Strong earnings by $TSM, stock is up +4% overnight, hitting an all-time-high🫡
$TSM TSMC Q3 FY24:
• Revenue +36% Y/Y $23.5B ($0.2B beat).
• Gross margin 58% (+4pp Y/Y).
• Operating margin 47% (+6pp Y/Y).
• Capex $6.4B.
• EPADR $1.94 ($0.15 beat).
3nm & 5nm were 20% & 32% of revenue. https://t.co/ZItyG9XEKM tweet
Offshore
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Hidden Value Gems
This is quite interesting 👉🏼 $UBER looked at acquiring $EXPE especially since the current Uber CEO is the former CEO of Expedia and worked at its parent, $IAC before.
Expedia changed its CEO this year and announced a few turnaround measures.
The stock is super cheap at 12x PE, obviously struggled to grow and is facing weaker demand now...but still looks like an interesting long idea.
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This is quite interesting 👉🏼 $UBER looked at acquiring $EXPE especially since the current Uber CEO is the former CEO of Expedia and worked at its parent, $IAC before.
Expedia changed its CEO this year and announced a few turnaround measures.
The stock is super cheap at 12x PE, obviously struggled to grow and is facing weaker demand now...but still looks like an interesting long idea.
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Offshore
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Stock Analysis Compilation
BIT Capital on Hellofresh $HFG GR
Thesis: Hellofresh's growth prospects are driven by stabilizing meal-kit profits, cost reductions, and expansion into new food categories, supported by insider buying from the Founder-CEO
(Extract from their Q3 letter) https://t.co/GkCOuLxUEE
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BIT Capital on Hellofresh $HFG GR
Thesis: Hellofresh's growth prospects are driven by stabilizing meal-kit profits, cost reductions, and expansion into new food categories, supported by insider buying from the Founder-CEO
(Extract from their Q3 letter) https://t.co/GkCOuLxUEE
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Offshore
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Stock Analysis Compilation
Protean funds on Novo Nordisk $NOVOB DC
Thesis: Novo Nordisk's recent dip is a buying opportunity, with continued growth potential supported by strong fundamentals and an anticipated read-out of key data in Q4
(Extract from their Q3 letter) https://t.co/RHy5zLxd8N
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Protean funds on Novo Nordisk $NOVOB DC
Thesis: Novo Nordisk's recent dip is a buying opportunity, with continued growth potential supported by strong fundamentals and an anticipated read-out of key data in Q4
(Extract from their Q3 letter) https://t.co/RHy5zLxd8N
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