Offshore
Photo
Hidden Value Gems
Abrams Capital (ex Baupost) increased its stake in Vistry to 10.2%
#Vistry $VTY.L https://t.co/yAaUuCYx5e
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Abrams Capital (ex Baupost) increased its stake in Vistry to 10.2%
#Vistry $VTY.L https://t.co/yAaUuCYx5e
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Offshore
Photo
Stock Analysis Compilation
ARAR Fund on Nippon Shindo $5753 JT
Thesis: Nippon Shindo is a Japanese Net-Net with significant cash on its balance sheet, a low P/E of 5, growing profits, and potential for future shareholder value creation amidst pressure to utilize its cash.
(Extract from their Q4 letter) https://t.co/8oxafkgJ7H
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ARAR Fund on Nippon Shindo $5753 JT
Thesis: Nippon Shindo is a Japanese Net-Net with significant cash on its balance sheet, a low P/E of 5, growing profits, and potential for future shareholder value creation amidst pressure to utilize its cash.
(Extract from their Q4 letter) https://t.co/8oxafkgJ7H
tweet
Offshore
Photo
Hidden Value Gems
Who would have guessed? European banks performed in line with Mag7 since 2021!
"The striking statistic is partly a reminder of the importance of choosing the right time series — go back to the start of 2015 and banking sector returns are pretty much static; the Mag 7 rises to 2,700%. Still, it does highlight that, sometimes, beaten down value stocks do rear their heads again."
h/t @NicholasMegaw
tweet
Who would have guessed? European banks performed in line with Mag7 since 2021!
"The striking statistic is partly a reminder of the importance of choosing the right time series — go back to the start of 2015 and banking sector returns are pretty much static; the Mag 7 rises to 2,700%. Still, it does highlight that, sometimes, beaten down value stocks do rear their heads again."
h/t @NicholasMegaw
tweet
Offshore
Video
Startup Archive
Marc Andreessen on why we shouldn’t encourage people to be entrepreneurs
“The idea of being an entrepreneur has been a romanticized concept. There used to be TV shows talking about how fun it was. And people ask questions, ‘How do we encourage more people to be entrepreneurs?’ And my answer was always: no, we shouldn’t do that. People shouldn’t be encouraged to do something that painful. They should do it because they really want to do it. In fact, they should do it because they can’t not do it.”
Marc continues:
“It’s tremendously painful. Most of the experience of being in business as a startup is being told no. You need all these things: employees, financing, customers. Then you go around all day long asking people for those things and they tell you no. Half the time they don’t even respond. And then just when you think you get it working, a new competitor emerges and just starts punching you square in the face. The minute you think your product is working, there’s a problem in it, and you have to do a recall. It’s just this constant rolling horror story.”
Video source: @ChrisWillx (2024)
tweet
Marc Andreessen on why we shouldn’t encourage people to be entrepreneurs
“The idea of being an entrepreneur has been a romanticized concept. There used to be TV shows talking about how fun it was. And people ask questions, ‘How do we encourage more people to be entrepreneurs?’ And my answer was always: no, we shouldn’t do that. People shouldn’t be encouraged to do something that painful. They should do it because they really want to do it. In fact, they should do it because they can’t not do it.”
Marc continues:
“It’s tremendously painful. Most of the experience of being in business as a startup is being told no. You need all these things: employees, financing, customers. Then you go around all day long asking people for those things and they tell you no. Half the time they don’t even respond. And then just when you think you get it working, a new competitor emerges and just starts punching you square in the face. The minute you think your product is working, there’s a problem in it, and you have to do a recall. It’s just this constant rolling horror story.”
Video source: @ChrisWillx (2024)
tweet
Offshore
Photo
Dimitry Nakhla | Babylon Capital®
A quality valuation analysis on $NVR 🧘🏽♂️
•NTM P/E Ratio: 14.44x
•10-Year Mean: 15.31x
•NTM FCF Yield: 6.99%
•10-Year Mean: 6.43%
As you can see, $NVR appears to be trading near fair value
Going forward, investors can receive ~6% MORE in earnings per share & ~9% MORE in FCF per share 🧠***
Before we get into valuation, let’s take a look at why $NVR is a good business
BALANCE SHEET✅
•Cash & Short-Term Inv: $2.56B
•Long-Term Debt: $0.91B
$NVR has a strong balance sheet, a BBB+ S&P Credit Rating & >50x FFO Interest Coverage
RETURN ON CAPITAL✅
•2019: 34.7%
•2020: 24.4%
•2021: 35.7%
•2022: 50.8%
•2023: 36.2%
•2024: 41.0%
RETURN ON EQUITY✅
•2019: 42.3%
•2020: 33.1%
•2021: 40.5%
•2022: 53.0%
•2023: 40.4%
•2024: 39.2%
$NVR has strong return metrics, highlighting the financial efficiency of the business
REVENUES✅
•2014: $4.45B
•2024: $10.69B
•CAGR: 9.15%
FREE CASH FLOW✅
•2014: $0.15B
•2023*: $1.47B
•CAGR: 28.86%
NORMALIZED EPS✅
•2014: $63.50
•2024: $506.69
•CAGR: 23.08%
SHARE BUYBACKS✅
•2014 Shares Outstanding: 4.44M
•LTM Shares Outstanding: 3.32M
By reducing its shares outstanding ~25%, $NVR increased its EPS by ~33% (assuming 0 growth)
MARGINS✅
•LTM Gross Margins: 25.6%
•LTM Operating Margins: 20.0%
•LTM Net Income Margins: 15.7%
***NOW TO VALUATION 🧠
As stated above, investors can expect to receive ~6% MORE in EPS & ~9% MORE in FCF per share
Using Benjamin Graham’s 2G rule of thumb, $NVR has to grow earnings at a 7.22% CAGR over the next several years to justify its valuation
Today, analysts anticipate 2025 - 2027 EPS growth over the next few years to be slightly less than the (7.22%) required growth rate:
2025E: $505.44 (-0.2% YoY) *FY Dec
2026E: $553.26 (9.5% YoY)
2027E: $608.00 (9.9% YoY)
$NVR has a great track record of meeting analyst estimates ~2 years out, but let’s assume $NVR ends 2027 with $608.00 in EPS & see its CAGR potential assuming different multiples:
17x P/E: $804.48💵 … ~12.8% CAGR
16x P/E: $779.34💵 … ~10.5% CAGR
15x P/E: $9120💵 … ~8.0% CAGR
14x P/E: $8512💵 … ~5.5% CAGR
13x P/E: $7904💵 … ~2.8% CAGR
We would have to assume >16x multiple for $NVR to have attractive return potential
While $NVR is an excellent business, I don’t want to rely on 16x as this doesn’t leave us with a margin of safety
As you can see in the first photo, $NVR traded for <13x ~5 times in the past 5 years & given the nature of its business, we may very likely see it trade for ~13x within the next couple of years
i consider $nvr a good purchase with a decent margin of safety closer to $6500💵, or ~13x ntm earnings (~10% below todays price)
given today’s estimates, at $6500💵 i can reasonably expect ~10% cagr while assuming 14x
___
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. <a href='ht[...]
A quality valuation analysis on $NVR 🧘🏽♂️
•NTM P/E Ratio: 14.44x
•10-Year Mean: 15.31x
•NTM FCF Yield: 6.99%
•10-Year Mean: 6.43%
As you can see, $NVR appears to be trading near fair value
Going forward, investors can receive ~6% MORE in earnings per share & ~9% MORE in FCF per share 🧠***
Before we get into valuation, let’s take a look at why $NVR is a good business
BALANCE SHEET✅
•Cash & Short-Term Inv: $2.56B
•Long-Term Debt: $0.91B
$NVR has a strong balance sheet, a BBB+ S&P Credit Rating & >50x FFO Interest Coverage
RETURN ON CAPITAL✅
•2019: 34.7%
•2020: 24.4%
•2021: 35.7%
•2022: 50.8%
•2023: 36.2%
•2024: 41.0%
RETURN ON EQUITY✅
•2019: 42.3%
•2020: 33.1%
•2021: 40.5%
•2022: 53.0%
•2023: 40.4%
•2024: 39.2%
$NVR has strong return metrics, highlighting the financial efficiency of the business
REVENUES✅
•2014: $4.45B
•2024: $10.69B
•CAGR: 9.15%
FREE CASH FLOW✅
•2014: $0.15B
•2023*: $1.47B
•CAGR: 28.86%
NORMALIZED EPS✅
•2014: $63.50
•2024: $506.69
•CAGR: 23.08%
SHARE BUYBACKS✅
•2014 Shares Outstanding: 4.44M
•LTM Shares Outstanding: 3.32M
By reducing its shares outstanding ~25%, $NVR increased its EPS by ~33% (assuming 0 growth)
MARGINS✅
•LTM Gross Margins: 25.6%
•LTM Operating Margins: 20.0%
•LTM Net Income Margins: 15.7%
***NOW TO VALUATION 🧠
As stated above, investors can expect to receive ~6% MORE in EPS & ~9% MORE in FCF per share
Using Benjamin Graham’s 2G rule of thumb, $NVR has to grow earnings at a 7.22% CAGR over the next several years to justify its valuation
Today, analysts anticipate 2025 - 2027 EPS growth over the next few years to be slightly less than the (7.22%) required growth rate:
2025E: $505.44 (-0.2% YoY) *FY Dec
2026E: $553.26 (9.5% YoY)
2027E: $608.00 (9.9% YoY)
$NVR has a great track record of meeting analyst estimates ~2 years out, but let’s assume $NVR ends 2027 with $608.00 in EPS & see its CAGR potential assuming different multiples:
17x P/E: $804.48💵 … ~12.8% CAGR
16x P/E: $779.34💵 … ~10.5% CAGR
15x P/E: $9120💵 … ~8.0% CAGR
14x P/E: $8512💵 … ~5.5% CAGR
13x P/E: $7904💵 … ~2.8% CAGR
We would have to assume >16x multiple for $NVR to have attractive return potential
While $NVR is an excellent business, I don’t want to rely on 16x as this doesn’t leave us with a margin of safety
As you can see in the first photo, $NVR traded for <13x ~5 times in the past 5 years & given the nature of its business, we may very likely see it trade for ~13x within the next couple of years
i consider $nvr a good purchase with a decent margin of safety closer to $6500💵, or ~13x ntm earnings (~10% below todays price)
given today’s estimates, at $6500💵 i can reasonably expect ~10% cagr while assuming 14x
___
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. <a href='ht[...]
Offshore
Dimitry Nakhla | Babylon Capital® A quality valuation analysis on $NVR 🧘🏽♂️ •NTM P/E Ratio: 14.44x •10-Year Mean: 15.31x •NTM FCF Yield: 6.99% •10-Year Mean: 6.43% As you can see, $NVR appears to be trading near fair value Going forward, investors…
tps://twitter.com/DimitryNakhla/status/1890028814115148246'>tweet
Offshore
Photo
App Economy Insights
RT @EconomyApp: 📱 AppLovin $APP surged 713% in 2024! 📈
AI hype? Maybe. A business transformation? Definitely.
From gaming king to ad tech powerhouse, now it's targeting e-commerce.
Sustainable rally or inflated expectations?
🔎 Full breakdown. 👇
https://t.co/JjkiLJ8kel
tweet
RT @EconomyApp: 📱 AppLovin $APP surged 713% in 2024! 📈
AI hype? Maybe. A business transformation? Definitely.
From gaming king to ad tech powerhouse, now it's targeting e-commerce.
Sustainable rally or inflated expectations?
🔎 Full breakdown. 👇
https://t.co/JjkiLJ8kel
tweet
Offshore
Photo
Quiver Quantitative
BREAKING: Newly elected Representative Julie Johnson just disclosed dozens of new stock trades.
She bought stock in Palantir, $PLTR, on January 15th.
The stock is up 72% since then.
She sits on the House Committee on Homeland Security. https://t.co/DM5OBnHDaR
tweet
BREAKING: Newly elected Representative Julie Johnson just disclosed dozens of new stock trades.
She bought stock in Palantir, $PLTR, on January 15th.
The stock is up 72% since then.
She sits on the House Committee on Homeland Security. https://t.co/DM5OBnHDaR
tweet