⁠PitchDeckGuy
From her home kitchen to a $1.1B valuation

Rachel Drori revolutionized frozen meals with Daily Harvest

Here’s her story👇 https://t.co/e13VhVqV1v
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⁠PitchDeckGuy
Has any stock underperformed more than GoPro? https://t.co/E9GkKv4USg
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⁠Quiver Quantitative
RT @InsiderRadar: 🚨Insider Trading Alert

Envista Holdings, $NVST, sees major insider buys:

🔹CEO: ~$506,100 purchase on Aug 13
🔹CFO: ~$400,607 purchase on Aug 12

Largest insider purchases in 5 years.

The stock is up 4% today. https://t.co/JGXRgrE45I
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AkhenOsiris
Don't even see 🐻's attributing July retail sales strength to Prime Day bump, where the heck are they
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⁠Stock Analysis Compilation
Aristotle on Analog Devices $ADI US

Thesis: Analog Devices is at the forefront of high-growth trends in automotive electrification, IoT, and sustainable energy, promising strong returns for investors

(Extract from their Q2 letter) https://t.co/1BWmHTC80P
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⁠Matt McGarry
NEWS: TipRanks sells for $200M

TipsRanks is an investing research website and newsletter founded in 2012.

- 120 employees
- $20-$30M in annual revenue
- Raised $45 million and sold $60 million in secondary
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⁠Librarian Capital
Pershing Square $PSH on Alphabet $GOOG (H1 report)

On CapEx hike: "will further differentiate ... tech infrastructure and cost-to-serve advantage"

On antitrust: "to take ... potentially more than a year", "well-positioned to navigate a range of likely potential remedy outcomes" https://t.co/oKjHV466wa
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⁠Dimitry Nakhla | Babylon Capital®
RT @DimitryNakhla: Chuck Akre’s updated Q2 2024 13F (Dataroma)

Top 5 holdings: $MA $MCO $KKR $AMT & $ORLY

New holdings: $ABNB

#stocks #investing https://t.co/0NJV4pB2Xb
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⁠Dimitry Nakhla | Babylon Capital®
Last month, after reporting strong quarterly results, $META traded down to an attractive level of valuation.

Since then, $META shares increased +12.70% 🟢

As I stated in my analysis:

“As you can see, $META appears to have double-digit CAGR potential if we assume >23x earnings, a multiple slightly below what it’s trading for today and a multiple below what may be justified given its mid-teens earnings growth rate

I also believe that Mark Zuckerberg will continue to execute exceptionally well

Additionally, the increased investment in future growth and necessary AI development has the potential to drive better growth prospects, which could serve as a bullish catalyst for the next several years

Today at $476💵 $META appears to be a good consideration for investment

$META appears to be an excellent deal closer to $450💵 where it has ~11% CAGR potential assuming 2026E and a 22x multiple (an added layer of margin of safety)”
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#stocks #investing"

A sober valuation analysis on $META 🧘🏽‍♂️

•NTM P/E Ratio: 23.17x
•10-Year Mean: 26.61x

•NTM FCF Yield: 3.77%
•10-Year Mean: 3.30%

As you can see, $META appears to be slightly undervalued

Going forward, investors can expect to receive ~14% MORE in earnings per share & ~14% MORE in FCF per share🧠***

Before we get into valuation, let’s take a look at why $META is a quality business

BALANCE SHEET✅
•Cash & Equivalents: $58.12B
•Long-Term Debt: $18.39B

$META has an excellent balance sheet, an AA- S&P Credit Rating & 147x FFO Interest Coverage Ratio

RETURN ON CAPITAL✅
•2019: 26.0%
•2020: 23.5%
•2021: 33.7%
•2022: 22.0%
•2023: 26.3%
•LTM: 30.1%

RETURN ON EQUITY✅
•2019: 20.0%
•2020: 25.4%
•2021: 31.1%
•2022: 18.5%
•2023: 28.0%
•LTM: 33.4%

$META has great return metrics, highlighting the financial efficiency of the business

REVENUES✅
•2018: $55.84B
•2023: $134.90B
•CAGR: 19.29%

FREE CASH FLOW✅
•2018: $15.36B
•2023: $43.85B
•CAGR: 23.34%

NORMALIZED EPS✅
•2018: $7.57
•2023: $14.87
•CAGR: 14.45%

SHARE BUYBACKS✅
•2018 Shares Outstanding: 2.92B
•LTM Shares Outstanding: 2.64B

By reducing its shares outstanding ~9.5%, $META increased its EPS by ~10.5% (assuming 0 growth)

MARGINS✅
•LTM Gross Margins: 81.5%
•LTM Operating Margins: 39.5%
•LTM Net Income Margins: 32.1%

***NOW TO VALUATION 🧠

As stated above, investors can expect to receive ~14% MORE in EPS & ~14% MORE in FCF per share

Using Benjamin Graham’s 2G rule of thumb, $META has to grow earnings at an 11.60% CAGR over the next several years to justify its valuation

Today, analysts anticipate 2024 - 2026 EPS growth over the next few years to be greater than the (11.60%) required growth rate:

2024E: $20.14 (35.4% YoY)
2025E: $23.05 (14.5% YoY)
2026E: $26.32 (14.2% YoY)

$META has a decent track record of meeting analyst estimates ~2 years out, so let’s assume $META ends 2026 with $26.32 in EPS & see its CAGR potential assuming different multiples

24x P/E: $631.68💵 … ~12.5% CAGR

23x P/E: $605.36💵 … ~10.5% CAGR

22x P/E: $579.04💵 … ~8.5% CAGR

As you can see, $META appears to have double-digit CAGR potential if we assume >23x earnings, a multiple slightly below what it’s trading for today and a multiple below what may be justified given its mid-teens earnings growth rate

I also believe that Mark Zuckerberg will continue to execute exceptionally well

Additionally, the increased investment in future growth and necessary AI development has the potential to drive better growth prospects, which could serve as a bullish catalyst for the next several years

Today at $476💵 $META appears to be a good consideration for investment

$META appears to be an excellent deal closer to $450💵 where it has ~11% CAGR potential assuming 20[...]

26E and a 22x multiple (an added layer of margin of safety)

#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. "- Dimitry Nakhla | Babylon Capital®
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