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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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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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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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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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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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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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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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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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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)”
___
#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[...]
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)”
___
#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[...]