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Wall St Engine
RT @wallstengine: According to Polymarket, $GOOGL has the best AI model out there right now.
Just goes to show — even with a top-tier product, without solid marketing or branding, it’s hard to drive real consumer adoption or get people talking.
Did Google totally fumble the launch of Gemini? https://t.co/pMZKymQAcM
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RT @wallstengine: According to Polymarket, $GOOGL has the best AI model out there right now.
Just goes to show — even with a top-tier product, without solid marketing or branding, it’s hard to drive real consumer adoption or get people talking.
Did Google totally fumble the launch of Gemini? https://t.co/pMZKymQAcM
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Wall St Engine
NESTLE TO HIKE U.S. CHOCOLATE PRICES STARTING JUNE 23
Nestle USA is raising prices on Toll House chocolate chips, baking cocoa, and fudge kits due to soaring cocoa costs. The company cited “exhausting efforts” to offset commodity inflation.
The move follows failed attempts to get suppliers to cut prices and comes as cocoa remains historically expensive, despite easing 30% off last year’s peak near $13,000/ton. Nestle aims to save $843M in 2025, largely through procurement.
The company clarified the hikes aren’t tariff-related.
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NESTLE TO HIKE U.S. CHOCOLATE PRICES STARTING JUNE 23
Nestle USA is raising prices on Toll House chocolate chips, baking cocoa, and fudge kits due to soaring cocoa costs. The company cited “exhausting efforts” to offset commodity inflation.
The move follows failed attempts to get suppliers to cut prices and comes as cocoa remains historically expensive, despite easing 30% off last year’s peak near $13,000/ton. Nestle aims to save $843M in 2025, largely through procurement.
The company clarified the hikes aren’t tariff-related.
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Honest question for $PLTR shareholders: What upside do you see at 160x P/FCF and fully optimized margins? 🤔 https://t.co/MAGiecj2Ck
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Honest question for $PLTR shareholders: What upside do you see at 160x P/FCF and fully optimized margins? 🤔 https://t.co/MAGiecj2Ck
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Dimitry Nakhla | Babylon Capital®
RT @DimitryNakhla: A quality valuation analysis on $TMO 🧘🏽♂️
•NTM P/E Ratio: 17.84x
•10-Year Mean: 22.02x
•NTM FCF Yield: 4.97%
•10-Year Mean: 4.16%
As you can see, $TMO appears to be trading below fair value
Going forward, investors can receive ~23% MORE in earnings per share & ~19% MORE in FCF per share 🧠***
Before we get into valuation, let’s take a look at why $TMO is a great business
BALANCE SHEET🆗
•Cash & Short-Term Inv: $5.95B
•Long-Term Debt: $31.24B
$TMO has a good balance sheet (acquisitions a big growth driver), a A- S&P Credit Rating & 6x FFO Interest Coverage
RETURN ON CAPITAL✅*
•2019: 8.3%
•2020: 13.4%
•2021: 12.8%
•2022: 10.3%
•2023: 8.7%
•2024: 9.2%
*lower ROIC due to acquisition strategy
RETURN ON EQUITY✅
•2019: 12.9%
•2020: 19.9%
•2021: 20.5%
•2022: 16.4%
•2023: 13.1%
•2024: 13.1%
$TMO has strong return metrics, highlighting the financial efficiency of the business
REVENUES✅
•2014: $16.89B
•2024: $42.88B
•CAGR: 9.76%
FREE CASH FLOW✅
•2014: $2.19B
•2024: $7.27B
•CAGR: 12.74%
NORMALIZED EPS✅
•2014: $6.96
•2024: $21.86
•CAGR: 12.12%
SHARE BUYBACKS🆗
•2019 Shares Outstanding: 403.00M
•LTM Shares Outstanding: 381.00M
MARGINS✅
•LTM Gross Margins: 41.4%
•LTM Operating Margins: 18.3%
•LTM Net Income Margins: 15.2%
***NOW TO VALUATION 🧠
As stated above, investors can expect to receive ~23% MORE in EPS & ~19% MORE in FCF per share
Using Benjamin Graham’s 2G rule of thumb, $TMO has to grow earnings at an 8.92% 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 (8.92%) required growth rate:
2025E: $22.47 (2.8% YoY) *FY Dec
2026E: $24.84 (10.6% YoY)
2027E: $27.73 (11.6% YoY)
$TMO has an excellent track record of meeting analyst estimates ~2 years out, let’s assume $TMO ends 2027 with $27.73 in EPS & see its CAGR potential assuming different multiples
24x P/E: $665.52💵 … ~20.0% CAGR
23x P/E: $637.79💵 … ~18.1% CAGR
22x P/E: $610.06💵 … ~16.2% CAGR
21x P/E: $582.33💵 … ~14.1% CAGR
20x P/E: $554.60💵 … ~12.1% CAGR
As you can see, $TMO appears to have attractive return potential IF we assume >20x earnings and strong return potential at 22x
Despite $TMO’s earnings dip from 2020-2023 due to pandemic-driven booms followed by biopharma funding & tariff fears, its proven track record of steady growth, among other things, signals a return to normalcy once these overhangs clear
$TMO is an excellent business with a wide moat & will benefit from future ongoing sector demand (AI tailwinds in scientific research), especially their next-gen sequencing machines & chromatography machines
Today at $414💵, $TMO is a strong consideration for investment with a large margin of safety
___
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 𝐜[...]
RT @DimitryNakhla: A quality valuation analysis on $TMO 🧘🏽♂️
•NTM P/E Ratio: 17.84x
•10-Year Mean: 22.02x
•NTM FCF Yield: 4.97%
•10-Year Mean: 4.16%
As you can see, $TMO appears to be trading below fair value
Going forward, investors can receive ~23% MORE in earnings per share & ~19% MORE in FCF per share 🧠***
Before we get into valuation, let’s take a look at why $TMO is a great business
BALANCE SHEET🆗
•Cash & Short-Term Inv: $5.95B
•Long-Term Debt: $31.24B
$TMO has a good balance sheet (acquisitions a big growth driver), a A- S&P Credit Rating & 6x FFO Interest Coverage
RETURN ON CAPITAL✅*
•2019: 8.3%
•2020: 13.4%
•2021: 12.8%
•2022: 10.3%
•2023: 8.7%
•2024: 9.2%
*lower ROIC due to acquisition strategy
RETURN ON EQUITY✅
•2019: 12.9%
•2020: 19.9%
•2021: 20.5%
•2022: 16.4%
•2023: 13.1%
•2024: 13.1%
$TMO has strong return metrics, highlighting the financial efficiency of the business
REVENUES✅
•2014: $16.89B
•2024: $42.88B
•CAGR: 9.76%
FREE CASH FLOW✅
•2014: $2.19B
•2024: $7.27B
•CAGR: 12.74%
NORMALIZED EPS✅
•2014: $6.96
•2024: $21.86
•CAGR: 12.12%
SHARE BUYBACKS🆗
•2019 Shares Outstanding: 403.00M
•LTM Shares Outstanding: 381.00M
MARGINS✅
•LTM Gross Margins: 41.4%
•LTM Operating Margins: 18.3%
•LTM Net Income Margins: 15.2%
***NOW TO VALUATION 🧠
As stated above, investors can expect to receive ~23% MORE in EPS & ~19% MORE in FCF per share
Using Benjamin Graham’s 2G rule of thumb, $TMO has to grow earnings at an 8.92% 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 (8.92%) required growth rate:
2025E: $22.47 (2.8% YoY) *FY Dec
2026E: $24.84 (10.6% YoY)
2027E: $27.73 (11.6% YoY)
$TMO has an excellent track record of meeting analyst estimates ~2 years out, let’s assume $TMO ends 2027 with $27.73 in EPS & see its CAGR potential assuming different multiples
24x P/E: $665.52💵 … ~20.0% CAGR
23x P/E: $637.79💵 … ~18.1% CAGR
22x P/E: $610.06💵 … ~16.2% CAGR
21x P/E: $582.33💵 … ~14.1% CAGR
20x P/E: $554.60💵 … ~12.1% CAGR
As you can see, $TMO appears to have attractive return potential IF we assume >20x earnings and strong return potential at 22x
Despite $TMO’s earnings dip from 2020-2023 due to pandemic-driven booms followed by biopharma funding & tariff fears, its proven track record of steady growth, among other things, signals a return to normalcy once these overhangs clear
$TMO is an excellent business with a wide moat & will benefit from future ongoing sector demand (AI tailwinds in scientific research), especially their next-gen sequencing machines & chromatography machines
Today at $414💵, $TMO is a strong consideration for investment with a large margin of safety
___
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 𝐜[...]
Wall St Engine
RT @wallstengine: Warren Buffett’s advice for young peoplel:
• Surround yourself with people who make you better
• Pick mentors you admire — you’ll pick up their habits
• Don’t chase high starting salaries; chase learning
• Do work you’d do even if money wasn’t a factor
• Be around those who bring the best out of others
• If you’re born in the U.S., “you’ve already won the game”
• And if you’re lucky, find your passion early — that’s the real win
tweet
RT @wallstengine: Warren Buffett’s advice for young peoplel:
• Surround yourself with people who make you better
• Pick mentors you admire — you’ll pick up their habits
• Don’t chase high starting salaries; chase learning
• Do work you’d do even if money wasn’t a factor
• Be around those who bring the best out of others
• If you’re born in the U.S., “you’ve already won the game”
• And if you’re lucky, find your passion early — that’s the real win
tweet
Wall St Engine
RT @wallstengine: Warren Buffett: "Be very careful who you work for, because you will take on the habits of the people around you."
tweet
RT @wallstengine: Warren Buffett: "Be very careful who you work for, because you will take on the habits of the people around you."
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Wall St Engine
The Trump admin is weighing executive orders to fast-track nuclear expansion—aiming to 4x capacity by 2050. Drafts call for overhauling NRC rules, easing radiation limits, and deploying reactors on military sites and AI data centers. - NYT https://t.co/BD3Xxr63IF
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The Trump admin is weighing executive orders to fast-track nuclear expansion—aiming to 4x capacity by 2050. Drafts call for overhauling NRC rules, easing radiation limits, and deploying reactors on military sites and AI data centers. - NYT https://t.co/BD3Xxr63IF
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