Antonio Linares
RT @NeoKJ2505: @alc2022 I agree. I think people underestimate amd’s strength in edge computing. Right now, people are focusing all on cloud computing. But cloud can’t be represent all ai stuff. That’s why people think amd is lagging nvda so much…
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RT @NeoKJ2505: @alc2022 I agree. I think people underestimate amd’s strength in edge computing. Right now, people are focusing all on cloud computing. But cloud can’t be represent all ai stuff. That’s why people think amd is lagging nvda so much…
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Offshore
Photo
The Long Investor
$PLTR the set up is there....just needs a solid earnings now
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$PLTR the set up is there....just needs a solid earnings now
$PLTR has exploded straight after its last two earnings reports and declined leading up to both reports too.
If history is repeating itself, then we expect the same reaction on the 6th of May.
Testing the 200 Day MA before this happens would be ideal at $18.70 https://t.co/aIlsVgVoHA tweet
Offshore
Photo
Brandon Beylo
Is a 76% increase in revenue and a 3,483% increase in net income good?
Asking for a friend because that's what Idaho Strategic $IDR just did.
Incredible start to 2024, but this is just the beginning.
#gold https://t.co/COrdHtc8Uy
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Is a 76% increase in revenue and a 3,483% increase in net income good?
Asking for a friend because that's what Idaho Strategic $IDR just did.
Incredible start to 2024, but this is just the beginning.
#gold https://t.co/COrdHtc8Uy
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Offshore
Photo
Dimitry Nakhla | Babylon Capital®
A sober valuation analysis on $ACN 🧘🏽♂️
•NTM P/E Ratio: 24.50x
•10-Year Mean: 23.98x
•NTM FCF Yield: 5.42%
•10-Year Mean: 5.20%
As you can see, $ACN appears to be trading near fair value
Going forward, investors can expect to receive ~2% LESS in earnings per share & ~4% MORE in FCF per share🧠***
Before we get into valuation, let’s take a look at why $ACN is a quality business
BALANCE SHEET✅
•Cash & Equivalents: $5.12B
•Long-Term Debt: $71.64M
$ACN has an excellent balance sheet, an AA- S&P Credit Rating & 174x FFO Interest Coverage Ratio
RETURN ON CAPITAL✅
•2018: 54.2%
•2019: 42.1%
•2020: 30.8%
•2021: 32.0%
•2022: 38.2%
•2023: 33.8%
RETURN ON EQUITY✅
•2018: 41.2%
•2019: 37.9%
•2020: 32.1%
•2021: 31.9%
•2022: 32.6%
•2023: 28.5%
$ACN has great return metrics, highlighting the financial efficiency of the business
REVENUES✅
•2013: $28.56B
•2023: $64.11B
•CAGR: 8.42%
FREE CASH FLOW✅
•2013: $2.93B
•2023: $8.99B
•CAGR: 11.86%
NORMALIZED EPS✅
•2013: $4.21
•2023: $11.67
•CAGR: 10.73%
SHARE BUYBACKS✅
•2013 Shares Outstanding: 713.34M
•LTM Shares Outstanding: 637.95M
By reducing its shares outstanding ~10.5%, $ACN increased its EPS by ~11.7% (assuming 0 growth)
PAID DIVIDENDS✅
•2013: $1.62
•2023: $4.48
•CAGR: 10.70%
MARGINS✅
•LTM Gross Margins: 32.6%
•LTM Operating Margins: 15.8%
•LTM Net Income Margins: 10.9%
***NOW TO VALUATION 🧠
As stated above, investors can expect to receive ~2% LESS in EPS & ~4% MORE FCF per share
Using Benjamin Graham’s 2G rule of thumb, $ACN has to grow earnings at a 12.25% CAGR over the next several years to justify its valuation
Today, analysts anticipate 2024 - 2026 EPS growth over the next few years to be less than the (12.25%) required growth rate:
2024E: $12.17 (4.3% YoY) *FY August
2025E: $13.20 (8.5% YoY)
2026E: $14.83 (12.4% YoY)
$ACN has an excellent track record of meeting analyst estimates ~2 years out, so let’s assume $ACN ends 2026 with $14.83 in EPS & see its CAGR potential assuming different multiples
25x P/E: $370.75💵 … ~10.3% CAGR
24x P/E: $355.92💵 … ~8.4% CAGR
23x P/E: $341.09💵 … ~6.5% CAGR
22x P/E: $326.26💵 … ~4.5% CAGR
As you can see, we’d have to assume >25x earnings for $ACN to have double digit CAGR potential (a multiple slightly above its 10-year average & above what’s arguably justified given its growth rate)
Today at $306💵 it appears that $ACN is a wonderful company trading at a fair price
I’d reconsider $ACN closer to $285💵 or at ~22.78x forward estimates (~7% below today’s price) where I can possibly expect near double digit return potential assuming a 23x end multiple in 2026
#stocks #investing
Thank you @WisedelCapital for the request
___
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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A sober valuation analysis on $ACN 🧘🏽♂️
•NTM P/E Ratio: 24.50x
•10-Year Mean: 23.98x
•NTM FCF Yield: 5.42%
•10-Year Mean: 5.20%
As you can see, $ACN appears to be trading near fair value
Going forward, investors can expect to receive ~2% LESS in earnings per share & ~4% MORE in FCF per share🧠***
Before we get into valuation, let’s take a look at why $ACN is a quality business
BALANCE SHEET✅
•Cash & Equivalents: $5.12B
•Long-Term Debt: $71.64M
$ACN has an excellent balance sheet, an AA- S&P Credit Rating & 174x FFO Interest Coverage Ratio
RETURN ON CAPITAL✅
•2018: 54.2%
•2019: 42.1%
•2020: 30.8%
•2021: 32.0%
•2022: 38.2%
•2023: 33.8%
RETURN ON EQUITY✅
•2018: 41.2%
•2019: 37.9%
•2020: 32.1%
•2021: 31.9%
•2022: 32.6%
•2023: 28.5%
$ACN has great return metrics, highlighting the financial efficiency of the business
REVENUES✅
•2013: $28.56B
•2023: $64.11B
•CAGR: 8.42%
FREE CASH FLOW✅
•2013: $2.93B
•2023: $8.99B
•CAGR: 11.86%
NORMALIZED EPS✅
•2013: $4.21
•2023: $11.67
•CAGR: 10.73%
SHARE BUYBACKS✅
•2013 Shares Outstanding: 713.34M
•LTM Shares Outstanding: 637.95M
By reducing its shares outstanding ~10.5%, $ACN increased its EPS by ~11.7% (assuming 0 growth)
PAID DIVIDENDS✅
•2013: $1.62
•2023: $4.48
•CAGR: 10.70%
MARGINS✅
•LTM Gross Margins: 32.6%
•LTM Operating Margins: 15.8%
•LTM Net Income Margins: 10.9%
***NOW TO VALUATION 🧠
As stated above, investors can expect to receive ~2% LESS in EPS & ~4% MORE FCF per share
Using Benjamin Graham’s 2G rule of thumb, $ACN has to grow earnings at a 12.25% CAGR over the next several years to justify its valuation
Today, analysts anticipate 2024 - 2026 EPS growth over the next few years to be less than the (12.25%) required growth rate:
2024E: $12.17 (4.3% YoY) *FY August
2025E: $13.20 (8.5% YoY)
2026E: $14.83 (12.4% YoY)
$ACN has an excellent track record of meeting analyst estimates ~2 years out, so let’s assume $ACN ends 2026 with $14.83 in EPS & see its CAGR potential assuming different multiples
25x P/E: $370.75💵 … ~10.3% CAGR
24x P/E: $355.92💵 … ~8.4% CAGR
23x P/E: $341.09💵 … ~6.5% CAGR
22x P/E: $326.26💵 … ~4.5% CAGR
As you can see, we’d have to assume >25x earnings for $ACN to have double digit CAGR potential (a multiple slightly above its 10-year average & above what’s arguably justified given its growth rate)
Today at $306💵 it appears that $ACN is a wonderful company trading at a fair price
I’d reconsider $ACN closer to $285💵 or at ~22.78x forward estimates (~7% below today’s price) where I can possibly expect near double digit return potential assuming a 23x end multiple in 2026
#stocks #investing
Thank you @WisedelCapital for the request
___
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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The Long Investor
$NIO if you missed the breakout, then wait for the retest of support.
50 Day MA or the wedge breakout level are the levels to watch. https://t.co/SvAF1ipRYD
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$NIO if you missed the breakout, then wait for the retest of support.
50 Day MA or the wedge breakout level are the levels to watch. https://t.co/SvAF1ipRYD
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Offshore
Photo
The Long Investor
$PLTR 4 out of the last 5 earnings, $PLTR has run aggressively post earnings.
Feb '23: 38%
May '23: 134%
Nov '23: 51%
Feb '24: 59%
$PLTR appears to be starting early this time, running 20% in 2 weeks
But there is still more to run, short term target is $29 if earnings exceed expectations.
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$PLTR 4 out of the last 5 earnings, $PLTR has run aggressively post earnings.
Feb '23: 38%
May '23: 134%
Nov '23: 51%
Feb '24: 59%
$PLTR appears to be starting early this time, running 20% in 2 weeks
But there is still more to run, short term target is $29 if earnings exceed expectations.
tweet
Offshore
Photo
The Long Investor
$GME holders not having a clue why it just rejected at $17.40
$6 TARGET. https://t.co/JHpdXG8bLQ
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$GME holders not having a clue why it just rejected at $17.40
$6 TARGET. https://t.co/JHpdXG8bLQ
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