AkhenOsiris
$ZS
Zscaler today announced a collaboration with NVIDIA to accelerate AI-powered copilot technologies. Zscaler will leverage NVIDIA AI technologies to deliver new user experience and security-centric copilot services to the enterprise. The introduction of new AI capabilities, leveraging NVIDIA NIM inference microservices, NVIDIA NeMo Guardrails, and the NVIDIA Morpheus framework, will dramatically increase the ability to process data from the Zero Trust Exchange platform, further enhancing Zscaler copilot's ability to proactively defend enterprises against cyber threats and simplify IT and network operations.
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$ZS
Zscaler today announced a collaboration with NVIDIA to accelerate AI-powered copilot technologies. Zscaler will leverage NVIDIA AI technologies to deliver new user experience and security-centric copilot services to the enterprise. The introduction of new AI capabilities, leveraging NVIDIA NIM inference microservices, NVIDIA NeMo Guardrails, and the NVIDIA Morpheus framework, will dramatically increase the ability to process data from the Zero Trust Exchange platform, further enhancing Zscaler copilot's ability to proactively defend enterprises against cyber threats and simplify IT and network operations.
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AkhenOsiris
RT @fundam_inv: $CFLT Init at Evercore
The Flow Goes On; Initiate at OP & $35 PT
Launching coverage with $35 price target โ attractive SMID-cap story with upside. We believe CFLT is the runaway market leader in the nascent $60bn+ (and growing) data streaming market, and we remain in the early innings of companies leveraging real-time data across their organizations as part of their data modernization and GenAI strategies. We believe the shift towards Confluent Cloud and the number of underappreciated growth levers (e.g., Flink, DSPs) will drive revenue reacceleration to 25%+ in FY25 alongside margin expansion, making CFLT a โRule of 40+โ company by FY26. Our $35 PT is based on shares trading to 9.5x EV / CY25 revenue, in line with other โgrowthโ software companies, as the company continues to execute and management guidance and Street estimates move higher
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RT @fundam_inv: $CFLT Init at Evercore
The Flow Goes On; Initiate at OP & $35 PT
Launching coverage with $35 price target โ attractive SMID-cap story with upside. We believe CFLT is the runaway market leader in the nascent $60bn+ (and growing) data streaming market, and we remain in the early innings of companies leveraging real-time data across their organizations as part of their data modernization and GenAI strategies. We believe the shift towards Confluent Cloud and the number of underappreciated growth levers (e.g., Flink, DSPs) will drive revenue reacceleration to 25%+ in FY25 alongside margin expansion, making CFLT a โRule of 40+โ company by FY26. Our $35 PT is based on shares trading to 9.5x EV / CY25 revenue, in line with other โgrowthโ software companies, as the company continues to execute and management guidance and Street estimates move higher
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Offshore
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โ Dimitry Nakhla | Babylon Capitalยฎ
A sober valuation analysis on $V ๐ง๐ฝโโ๏ธ
โขNTM P/E Ratio: 26.35x
โข10-Year Mean: 28.08x
โขNTM FCF Yield: 3.97%
โข10-Year Mean: 3.82%
As you can see, $V appears to be trading below fair value
Going forward, investors can receive ~6% MORE in earnings per share & ~4% MORE in FCF per share ๐ง ***
Before we get into valuation, letโs take a look at why $V is a quality business
BALANCE SHEETโ
โขCash & Short-Term Inv: $20.13B
โขLong-Term Debt: $20.78B
$V has a great balance sheet, an AA- S&P Credit Rating, & 32x FFO Interest Coverage Ratio
RETURN ON CAPITALโ
โข2019: 27.5%
โข2020: 21.4%
โข2021: 24.2%
โข2022: 30.7%
โข2023: 33.7%
RETURN ON EQUITYโ
โข2019: 35.2%
โข2020: 30.7%
โข2021: 33.4%
โข2022: 40.9%
โข2023: 46.5%
$V has strong return metrics, highlighting the financial efficiency of the business
REVENUESโ
โข2013: $11.78B
โข2023: $32.65B
โขCAGR: 10.73%
FREE CASH FLOWโ
โข2013: $2.55B
โข2023: $19.70B
โขCAGR: 22.68%
NORMALIZED EPSโ
โข2013: $1.90
โข2023: $8.77
โขCAGR: 16.52%
SHARE BUYBACKSโ
โข2013 Shares Outstanding: 2.62B
โขLTM Shares Outstanding: 2.02B
By reducing its shares outstanding 23%, $V increased its EPS by 30% (assuming 0 growth)
MARGINSโ
โขLTM Gross Margins: 97.8%
โขLTM Operating Margins: 67.3%
โขLTM Net Income Margins: 53.0%
***NOW TO VALUATION ๐ง
As stated above, investors can expect to receive ~6% MORE in EPS & ~4% MORE in FCF per share
Using Benjamin Grahamโs 2G rule of thumb, $V has to grow earnings at a 13.18% CAGR over the next several years to justify its valuation
Today, analysts anticipate 2024 - 2026 EPS growth over the next few years to be slightly less than the (13.18%) required growth rate:
2024E: $9.96 (13.6% YoY) *FY Sep
2025E: $11.19 (12.4% YoY)
2026E: $12.66 (13.1% YoY)
$V has an excellent track record of meeting analyst estimates ~2 years out, so letโs assume $V ends 2026 with $12.66 in EPS & see its CAGR potential assuming different multiples
29x P/E: $367.14๐ต โฆ ~14.6% CAGR
28x P/E: $354.48๐ต โฆ ~12.9% CAGR
27x P/E: $341.82๐ต โฆ ~11.2% CAGR
26x P/E: $329.16๐ต โฆ ~9.3% CAGR
As you can see, $V appears to have attractive return potential if we assume >27x earnings, a multiple near its 10-year mean & more importantly โ a multiple justified by its growth rate AND quality โ even assuming a 36x multiple, $V is still fairly attractive
I consider $V one of the best businesses in the world & as Warren Buffett says:
โItโs far better to buy a wonderful company at a fair price than a fair company at a wonderful priceโ
$V is even trading at a valuation slightly better than just a fair price
Today at $272.50๐ต $V appears to be a worthwhile consideration for investment
If I were adding shares of $V today, Iโd also leave some extra capital to accumulate even more shares closer to 24x (if it gets there) โ roughly 9% below todayโs price or at ~$248๐ต
#stocks #investing
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๐๐๐๐๐๐๐๐๐๐โผ๏ธ: ๐๐ก๐ข๐ฌ ๐ข๐ฌ ๐๐๐ ๐๐ง๐ฏ๐๐ฌ๐ญ๐ฆ๐๐ง๐ญ ๐๐๐ฏ๐ข๐๐. ๐๐๐๐ฒ๐ฅ๐จ๐ง ๐๐๐ฉ๐ข๐ญ๐๐ฅยฎ ๐๐ง๐ ๐ข๐ญ๐ฌ ๐ซ๐๐ฉ๐ซ๐๐ฌ๐๐ง๐ญ๐๐ญ๐ข๐ฏ๐๐ฌ ๐ฆ๐๐ฒ ๐ก๐๐ฏ๐ ๐ฉ๐จ๐ฌ๐ข๐ญ๐ข๐จ๐ง๐ฌ ๐ข๐ง ๐ญ๐ก๐ ๐ฌ๐๐๐ฎ๐ซ๐ข๐ญ๐ข๐๐ฌ ๐๐ข๐ฌ๐๐ฎ๐ฌ๐ฌ๐๐ ๐ข๐ง ๐ญ๐ก๐ข๐ฌ ๐ญ๐ฐ๐๐๐ญ.
๐๐ก๐ ๐ข๐ง๐๐จ๐ซ๐ฆ๐๐ญ๐ข๐จ๐ง ๐๐จ๐ง๐ญ๐๐ข๐ง๐๐ ๐ข๐ง ๐ญ๐ก๐ข๐ฌ ๐ญ๐ฐ๐๐๐ญ ๐ข๐ฌ ๐ข๐ง๐ญ๐๐ง๐๐๐ ๐๐จ๐ซ ๐ข๐ง๐๐จ๐ซ๐ฆ๐๐ญ๐ข๐จ๐ง๐๐ฅ ๐ฉ๐ฎ๐ซ๐ฉ๐จ๐ฌ๐๐ฌ ๐จ๐ง๐ฅ๐ฒ ๐๐ง๐ ๐ฌ๐ก๐จ๐ฎ๐ฅ๐ ๐ง๐จ๐ญ ๐๐ ๐๐จ๐ง๐ฌ๐ญ๐ซ๐ฎ๐๐ ๐๐ฌ ๐ข๐ง๐ฏ๐๐ฌ๐ญ๐ฆ๐๐ง๐ญ ๐๐๐ฏ๐ข๐๐ ๐ญ๐จ ๐ฆ๐๐๐ญ ๐ญ๐ก๐ ๐ฌ๐ฉ๐๐๐ข๐๐ข๐ ๐ง๐๐๐๐ฌ ๐จ๐ ๐๐ง๐ฒ ๐ข๐ง๐๐ข๐ฏ๐ข๐๐ฎ๐๐ฅ ๐จ๐ซ ๐ฌ๐ข๐ญ๐ฎ๐๐ญ๐ข๐จ๐ง. ๐๐๐ฌ๐ญ ๐ฉ๐๐ซ๐๐จ๐ซ๐ฆ๐๐ง๐๐ ๐ข๐ฌ ๐ง๐จ ๐ ๐ฎ๐๐ซ๐๐ง๐ญ๐๐ ๐จ๐ ๐๐ฎ๐ญ๐ฎ๐ซ๐ ๐ซ๐๐ฌ๐ฎ๐ฅ๐ญ๐ฌ.
๐๐ง๐๐จ๐ซ๐ฆ๐๐ญ๐ข๐จ๐ง ๐๐จ๐ง๐ญ๐๐ข๐ง๐๐ ๐ข๐ง ๐ญ๐ก๐ข๐ฌ ๐ญ๐ฐ๐๐๐ญ ๐ก๐๐ฌ ๐๐๐๐ง ๐จ๐๐ญ๐๐ข๐ง๐๐ ๐๐ซ๐จ๐ฆ ๐ฌ๐จ๐ฎ๐ซ๐๐๐ฌ ๐๐๐ฅ๐ข๐๐ฏ๐๐ ๐ญ๐จ ๐๐ ๐ซ๐๐ฅ๐ข๐๐๐ฅ๐, ๐๐ฎ๐ญ ๐ข๐ฌ ๐ง๐จ๐ญ ๐ ๐ฎ๐๐ซ๐๐ง๐ญ๐๐๐ ๐๐ฌ ๐ญ๐จ ๐๐จ๐ฆ๐ฉ๐ฅ๐๐ญ๐๐ง๐๐ฌ๐ฌ ๐จ๐ซ ๐๐๐๐ฎ๐ซ๐๐๐ฒ.
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A sober valuation analysis on $V ๐ง๐ฝโโ๏ธ
โขNTM P/E Ratio: 26.35x
โข10-Year Mean: 28.08x
โขNTM FCF Yield: 3.97%
โข10-Year Mean: 3.82%
As you can see, $V appears to be trading below fair value
Going forward, investors can receive ~6% MORE in earnings per share & ~4% MORE in FCF per share ๐ง ***
Before we get into valuation, letโs take a look at why $V is a quality business
BALANCE SHEETโ
โขCash & Short-Term Inv: $20.13B
โขLong-Term Debt: $20.78B
$V has a great balance sheet, an AA- S&P Credit Rating, & 32x FFO Interest Coverage Ratio
RETURN ON CAPITALโ
โข2019: 27.5%
โข2020: 21.4%
โข2021: 24.2%
โข2022: 30.7%
โข2023: 33.7%
RETURN ON EQUITYโ
โข2019: 35.2%
โข2020: 30.7%
โข2021: 33.4%
โข2022: 40.9%
โข2023: 46.5%
$V has strong return metrics, highlighting the financial efficiency of the business
REVENUESโ
โข2013: $11.78B
โข2023: $32.65B
โขCAGR: 10.73%
FREE CASH FLOWโ
โข2013: $2.55B
โข2023: $19.70B
โขCAGR: 22.68%
NORMALIZED EPSโ
โข2013: $1.90
โข2023: $8.77
โขCAGR: 16.52%
SHARE BUYBACKSโ
โข2013 Shares Outstanding: 2.62B
โขLTM Shares Outstanding: 2.02B
By reducing its shares outstanding 23%, $V increased its EPS by 30% (assuming 0 growth)
MARGINSโ
โขLTM Gross Margins: 97.8%
โขLTM Operating Margins: 67.3%
โขLTM Net Income Margins: 53.0%
***NOW TO VALUATION ๐ง
As stated above, investors can expect to receive ~6% MORE in EPS & ~4% MORE in FCF per share
Using Benjamin Grahamโs 2G rule of thumb, $V has to grow earnings at a 13.18% CAGR over the next several years to justify its valuation
Today, analysts anticipate 2024 - 2026 EPS growth over the next few years to be slightly less than the (13.18%) required growth rate:
2024E: $9.96 (13.6% YoY) *FY Sep
2025E: $11.19 (12.4% YoY)
2026E: $12.66 (13.1% YoY)
$V has an excellent track record of meeting analyst estimates ~2 years out, so letโs assume $V ends 2026 with $12.66 in EPS & see its CAGR potential assuming different multiples
29x P/E: $367.14๐ต โฆ ~14.6% CAGR
28x P/E: $354.48๐ต โฆ ~12.9% CAGR
27x P/E: $341.82๐ต โฆ ~11.2% CAGR
26x P/E: $329.16๐ต โฆ ~9.3% CAGR
As you can see, $V appears to have attractive return potential if we assume >27x earnings, a multiple near its 10-year mean & more importantly โ a multiple justified by its growth rate AND quality โ even assuming a 36x multiple, $V is still fairly attractive
I consider $V one of the best businesses in the world & as Warren Buffett says:
โItโs far better to buy a wonderful company at a fair price than a fair company at a wonderful priceโ
$V is even trading at a valuation slightly better than just a fair price
Today at $272.50๐ต $V appears to be a worthwhile consideration for investment
If I were adding shares of $V today, Iโd also leave some extra capital to accumulate even more shares closer to 24x (if it gets there) โ roughly 9% below todayโs price or at ~$248๐ต
#stocks #investing
___
๐๐๐๐๐๐๐๐๐๐โผ๏ธ: ๐๐ก๐ข๐ฌ ๐ข๐ฌ ๐๐๐ ๐๐ง๐ฏ๐๐ฌ๐ญ๐ฆ๐๐ง๐ญ ๐๐๐ฏ๐ข๐๐. ๐๐๐๐ฒ๐ฅ๐จ๐ง ๐๐๐ฉ๐ข๐ญ๐๐ฅยฎ ๐๐ง๐ ๐ข๐ญ๐ฌ ๐ซ๐๐ฉ๐ซ๐๐ฌ๐๐ง๐ญ๐๐ญ๐ข๐ฏ๐๐ฌ ๐ฆ๐๐ฒ ๐ก๐๐ฏ๐ ๐ฉ๐จ๐ฌ๐ข๐ญ๐ข๐จ๐ง๐ฌ ๐ข๐ง ๐ญ๐ก๐ ๐ฌ๐๐๐ฎ๐ซ๐ข๐ญ๐ข๐๐ฌ ๐๐ข๐ฌ๐๐ฎ๐ฌ๐ฌ๐๐ ๐ข๐ง ๐ญ๐ก๐ข๐ฌ ๐ญ๐ฐ๐๐๐ญ.
๐๐ก๐ ๐ข๐ง๐๐จ๐ซ๐ฆ๐๐ญ๐ข๐จ๐ง ๐๐จ๐ง๐ญ๐๐ข๐ง๐๐ ๐ข๐ง ๐ญ๐ก๐ข๐ฌ ๐ญ๐ฐ๐๐๐ญ ๐ข๐ฌ ๐ข๐ง๐ญ๐๐ง๐๐๐ ๐๐จ๐ซ ๐ข๐ง๐๐จ๐ซ๐ฆ๐๐ญ๐ข๐จ๐ง๐๐ฅ ๐ฉ๐ฎ๐ซ๐ฉ๐จ๐ฌ๐๐ฌ ๐จ๐ง๐ฅ๐ฒ ๐๐ง๐ ๐ฌ๐ก๐จ๐ฎ๐ฅ๐ ๐ง๐จ๐ญ ๐๐ ๐๐จ๐ง๐ฌ๐ญ๐ซ๐ฎ๐๐ ๐๐ฌ ๐ข๐ง๐ฏ๐๐ฌ๐ญ๐ฆ๐๐ง๐ญ ๐๐๐ฏ๐ข๐๐ ๐ญ๐จ ๐ฆ๐๐๐ญ ๐ญ๐ก๐ ๐ฌ๐ฉ๐๐๐ข๐๐ข๐ ๐ง๐๐๐๐ฌ ๐จ๐ ๐๐ง๐ฒ ๐ข๐ง๐๐ข๐ฏ๐ข๐๐ฎ๐๐ฅ ๐จ๐ซ ๐ฌ๐ข๐ญ๐ฎ๐๐ญ๐ข๐จ๐ง. ๐๐๐ฌ๐ญ ๐ฉ๐๐ซ๐๐จ๐ซ๐ฆ๐๐ง๐๐ ๐ข๐ฌ ๐ง๐จ ๐ ๐ฎ๐๐ซ๐๐ง๐ญ๐๐ ๐จ๐ ๐๐ฎ๐ญ๐ฎ๐ซ๐ ๐ซ๐๐ฌ๐ฎ๐ฅ๐ญ๐ฌ.
๐๐ง๐๐จ๐ซ๐ฆ๐๐ญ๐ข๐จ๐ง ๐๐จ๐ง๐ญ๐๐ข๐ง๐๐ ๐ข๐ง ๐ญ๐ก๐ข๐ฌ ๐ญ๐ฐ๐๐๐ญ ๐ก๐๐ฌ ๐๐๐๐ง ๐จ๐๐ญ๐๐ข๐ง๐๐ ๐๐ซ๐จ๐ฆ ๐ฌ๐จ๐ฎ๐ซ๐๐๐ฌ ๐๐๐ฅ๐ข๐๐ฏ๐๐ ๐ญ๐จ ๐๐ ๐ซ๐๐ฅ๐ข๐๐๐ฅ๐, ๐๐ฎ๐ญ ๐ข๐ฌ ๐ง๐จ๐ญ ๐ ๐ฎ๐๐ซ๐๐ง๐ญ๐๐๐ ๐๐ฌ ๐ญ๐จ ๐๐จ๐ฆ๐ฉ๐ฅ๐๐ญ๐๐ง๐๐ฌ๐ฌ ๐จ๐ซ ๐๐๐๐ฎ๐ซ๐๐๐ฒ.
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Offshore
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โ iinvested
1Q'24 Greenhaven Road Capital on $ALTG
To read the full letter follow the link:
https://t.co/HhAAZQRRKy https://t.co/VfnDANjyfT
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1Q'24 Greenhaven Road Capital on $ALTG
To read the full letter follow the link:
https://t.co/HhAAZQRRKy https://t.co/VfnDANjyfT
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Offshore
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โ iinvested
Here is Voss Capital on $ALTG
https://t.co/HhAAZQRRKy https://t.co/8UnWtDhPXB
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Here is Voss Capital on $ALTG
https://t.co/HhAAZQRRKy https://t.co/8UnWtDhPXB
1Q'24 Greenhaven Road Capital on $ALTG
To read the full letter follow the link:
https://t.co/HhAAZQRRKy https://t.co/VfnDANjyfT tweet