Offshore
Video
Value Spotlight (Andrew Sather)
(Tutorial): ROIC and acquisitions- Questions to ask yourself when running an ROIC for the 1st time
$HEI https://t.co/enWeDMgRAL
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(Tutorial): ROIC and acquisitions- Questions to ask yourself when running an ROIC for the 1st time
$HEI https://t.co/enWeDMgRAL
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Offshore
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Quiver Quantitative
Nancy Pelosi has lost $3.4M in the stock market today, per our estimates.
She is still up $22M on the year. https://t.co/E32jFlzW53
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Nancy Pelosi has lost $3.4M in the stock market today, per our estimates.
She is still up $22M on the year. https://t.co/E32jFlzW53
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Offshore
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Dimitry Nakhla | Babylon Capital®
RT @DimitryNakhla: A sober valuation analysis on $ELV 🧘🏽♂️
•NTM P/E Ratio: 11.52x
•5-Year Mean: 14.05x
•NTM FCF Yield: 8.28%
•5-Year Mean: 6.87%
As you can see, $ELV appears to be trading below fair value
Going forward, investors can expect to receive ~22% MORE in earnings per share & ~20% MORE in FCF per share🧠***
Before we get into valuation, let’s take a look at why $ELV is a quality business
BALANCE SHEET✅
•Cash & Equivalents: $7.86B
•Total Investments: $40.35B
•Long-Term Debt: $24.68B
$ELV has a strong balance sheet, an A S&P Credit Rating & 1.93x FFO Interest Coverage Ratio (temporarily lower FFO)
RETURN ON CAPITAL✅
•2019: 12.3%
•2020: 14.7%
•2021: 14.3%
•2022: 13.4%
•2023: 14.7%
•LTM: 14.5%
RETURN ON EQUITY✅
•2019: 16.0%
•2020: 14.1%
•2021: 17.7%
•2022: 16.3%
•2023: 15.8%
•LTM: 15.5%
$ELV has solid return metrics, highlighting the financial efficiency of the business
REVENUES✅
•2013: $71.02B
•2023: $171.34B
•CAGR: 9.20%
FREE CASH FLOW✅
•2013: $2.41B
•2023: $6.77B
•CAGR: 10.88%
NORMALIZED EPS✅
•2013: $8.52
•2023: $33.14
•CAGR: 14.54%
SHARE BUYBACKS✅
•2013 Shares Outstanding: 303.80M
•LTM Shares Outstanding: 234.10M
By reducing its shares outstanding ~23%, $ELV increases its EPS by ~30% (assuming 0 growth)
MARGINS🆗
•LTM Gross Margins: 9.4%
•LTM Operating Margins: 6.1%
•LTM Net Income Margins: 3.7%
PAID DIVIDENDS✅
•2013: $1.50
•2023: $5.92
•CAGR: 14.71%
***NOW TO VALUATION 🧠
As stated above, investors can expect to receive ~22% MORE in EPS & ~20% MORE in FCF per share
Using Benjamin Graham’s 2G rule of thumb, $ELV has to grow earnings at a 5.76% 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 (5.76%) required growth rate:
2024E: $35.36 (6.7% YoY) *FY Dec
2025E: $39.00 (10.3% YoY)
2026E: $44.01 (12.8% YoY)
$ELV has a great track record of meeting analyst estimates ~2 years out, so let’s assume $ELV ends 2026 with $44.01 in EPS & see its CAGR potential assuming different multiples
14x P/E: $616.14💵 … ~19.1% CAGR
13x P/E: $572.13💵 … ~15.2% CAGR
12x P/E: $528.12💵 … ~11.2% CAGR
As you can see, $ELV has attractive CAGR potential if we assume a >12x multiple (below its 14.05x 5-year mean & below its 14.22x 10-year mean)
More importantly, 12x is MORE than reasonable for a business that’s expected to grow earnings at a >10% rate & has a strong history of linear earnings growth ( $ELV has increased EPS annually since 2008 🎯)
I also like the negative price correlation $ELV can have, relative to tech, in the short-term … adding a layer of safety in a portfolio
In short, $ELV appears to be a strong consideration at $430💵
However, knowing that health insurers often face volatility amid the perception of political risks (among other things), it’s wise to piece in & perhaps be prepared to add a second tranche at lower prices (as I’ve mentioned before)
#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 $ELV 🧘🏽♂️
•NTM P/E Ratio: 11.52x
•5-Year Mean: 14.05x
•NTM FCF Yield: 8.28%
•5-Year Mean: 6.87%
As you can see, $ELV appears to be trading below fair value
Going forward, investors can expect to receive ~22% MORE in earnings per share & ~20% MORE in FCF per share🧠***
Before we get into valuation, let’s take a look at why $ELV is a quality business
BALANCE SHEET✅
•Cash & Equivalents: $7.86B
•Total Investments: $40.35B
•Long-Term Debt: $24.68B
$ELV has a strong balance sheet, an A S&P Credit Rating & 1.93x FFO Interest Coverage Ratio (temporarily lower FFO)
RETURN ON CAPITAL✅
•2019: 12.3%
•2020: 14.7%
•2021: 14.3%
•2022: 13.4%
•2023: 14.7%
•LTM: 14.5%
RETURN ON EQUITY✅
•2019: 16.0%
•2020: 14.1%
•2021: 17.7%
•2022: 16.3%
•2023: 15.8%
•LTM: 15.5%
$ELV has solid return metrics, highlighting the financial efficiency of the business
REVENUES✅
•2013: $71.02B
•2023: $171.34B
•CAGR: 9.20%
FREE CASH FLOW✅
•2013: $2.41B
•2023: $6.77B
•CAGR: 10.88%
NORMALIZED EPS✅
•2013: $8.52
•2023: $33.14
•CAGR: 14.54%
SHARE BUYBACKS✅
•2013 Shares Outstanding: 303.80M
•LTM Shares Outstanding: 234.10M
By reducing its shares outstanding ~23%, $ELV increases its EPS by ~30% (assuming 0 growth)
MARGINS🆗
•LTM Gross Margins: 9.4%
•LTM Operating Margins: 6.1%
•LTM Net Income Margins: 3.7%
PAID DIVIDENDS✅
•2013: $1.50
•2023: $5.92
•CAGR: 14.71%
***NOW TO VALUATION 🧠
As stated above, investors can expect to receive ~22% MORE in EPS & ~20% MORE in FCF per share
Using Benjamin Graham’s 2G rule of thumb, $ELV has to grow earnings at a 5.76% 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 (5.76%) required growth rate:
2024E: $35.36 (6.7% YoY) *FY Dec
2025E: $39.00 (10.3% YoY)
2026E: $44.01 (12.8% YoY)
$ELV has a great track record of meeting analyst estimates ~2 years out, so let’s assume $ELV ends 2026 with $44.01 in EPS & see its CAGR potential assuming different multiples
14x P/E: $616.14💵 … ~19.1% CAGR
13x P/E: $572.13💵 … ~15.2% CAGR
12x P/E: $528.12💵 … ~11.2% CAGR
As you can see, $ELV has attractive CAGR potential if we assume a >12x multiple (below its 14.05x 5-year mean & below its 14.22x 10-year mean)
More importantly, 12x is MORE than reasonable for a business that’s expected to grow earnings at a >10% rate & has a strong history of linear earnings growth ( $ELV has increased EPS annually since 2008 🎯)
I also like the negative price correlation $ELV can have, relative to tech, in the short-term … adding a layer of safety in a portfolio
In short, $ELV appears to be a strong consideration at $430💵
However, knowing that health insurers often face volatility amid the perception of political risks (among other things), it’s wise to piece in & perhaps be prepared to add a second tranche at lower prices (as I’ve mentioned before)
#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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Dimitry Nakhla | Babylon Capital®
$MA & $V are the 2 largest holdings in my portfolio
It’s great to own superb companies where you know short-term price action is a win-win ⬆️ or ⬇️
They fall, aggressive share buybacks are more accretive & I can accumulate more
They rise & so does the value of my portfolio https://t.co/1kBvmHwUHV
tweet
$MA & $V are the 2 largest holdings in my portfolio
It’s great to own superb companies where you know short-term price action is a win-win ⬆️ or ⬇️
They fall, aggressive share buybacks are more accretive & I can accumulate more
They rise & so does the value of my portfolio https://t.co/1kBvmHwUHV
tweet
Offshore
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Hidden Value Gems
Nice 😊
“Gatemore Capital Management has taken a position in Watches of Switzerland Group Plc and is asking the retailer of luxury timepieces to pursue an aggressive share buyback and consider listing in the US.”
$WOSG.L https://t.co/OlHhuLRHPI
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Nice 😊
“Gatemore Capital Management has taken a position in Watches of Switzerland Group Plc and is asking the retailer of luxury timepieces to pursue an aggressive share buyback and consider listing in the US.”
$WOSG.L https://t.co/OlHhuLRHPI
tweet
Offshore
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Quiver Quantitative
RT @InsiderRadar: Topline Capital Management, who has >10% ownership of $NRDS, just reported the purchase of ~$5m of the company's stock.
This is the first insider purchase that has been reported at NerdWallet in over a year. https://t.co/YPbxNRSAjR
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RT @InsiderRadar: Topline Capital Management, who has >10% ownership of $NRDS, just reported the purchase of ~$5m of the company's stock.
This is the first insider purchase that has been reported at NerdWallet in over a year. https://t.co/YPbxNRSAjR
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Offshore
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Quiver Quantitative
UPDATE: $TSLA is up 7% after releasing earnings.
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UPDATE: $TSLA is up 7% after releasing earnings.
BREAKING: Marjorie Taylor Greene just made almost a dozen stock trades.
She bought up to $15K of stock in Tesla, $TSLA.
Full trade list up on Quiver: https://t.co/g1mcb8ckDo tweet