Offshore
Photo
Stock Analysis Compilation
Baron Capital on Ajinomoto Co $2802 JP
Thesis: Ajinomoto’s near-monopoly in high-margin ABF technology and strong demand in AI-related semiconductor markets position it for significant profit growth
(Extract from their Q2 letter) https://t.co/K6gscLz6Kp
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Baron Capital on Ajinomoto Co $2802 JP
Thesis: Ajinomoto’s near-monopoly in high-margin ABF technology and strong demand in AI-related semiconductor markets position it for significant profit growth
(Extract from their Q2 letter) https://t.co/K6gscLz6Kp
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Offshore
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Stock Analysis Compilation
Davis fund on Tencent $TME US
Thesis: Tencent’s integration of generative AI across its social media, gaming, and cloud platforms positions it to capitalize on AI advancements, offering substantial growth potential
(Extract from their Q2 letter) https://t.co/7JOH9MJRDE
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Davis fund on Tencent $TME US
Thesis: Tencent’s integration of generative AI across its social media, gaming, and cloud platforms positions it to capitalize on AI advancements, offering substantial growth potential
(Extract from their Q2 letter) https://t.co/7JOH9MJRDE
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Librarian Capital
EU "competitiveness" report $NFLX $GOOG
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EU "competitiveness" report $NFLX $GOOG
Look carefully at page 75 of Draghi's report and he suggests something rather controversial. Content providers like Netflix or YouTube should be forced to pay EU telco operators extra money to be allowed to stream their content. Defenders of "net neutrality" will not like this. https://t.co/EFOLZEtnUi tweet
Offshore
Video
Value Spotlight (Andrew Sather)
RT @ValueSpotlight: Green Flags for ROIC (Tutorial):
$TXRH https://t.co/weJMTAPyNC
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RT @ValueSpotlight: Green Flags for ROIC (Tutorial):
$TXRH https://t.co/weJMTAPyNC
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Offshore
Video
Value Spotlight (Andrew Sather)
Calculating WACC and ROIC (Tutorial):
Is value created or destroyed? https://t.co/plxSII0o2o
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Calculating WACC and ROIC (Tutorial):
Is value created or destroyed? https://t.co/plxSII0o2o
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Offshore
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Stock Analysis Compilation
Baron Capital on Samsara $IOT US
Thesis: Samsara’s innovative cloud-native platform and expansive data-driven AI create a strong foundation for long-term growth in the connected asset market
(Extract from their Q2 letter) https://t.co/R3WTb5twfy
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Baron Capital on Samsara $IOT US
Thesis: Samsara’s innovative cloud-native platform and expansive data-driven AI create a strong foundation for long-term growth in the connected asset market
(Extract from their Q2 letter) https://t.co/R3WTb5twfy
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Investing visuals
MercadoLibre $MELI is a high quality compounder at a very reasonable price. Here's a snapshot of the company💎👇 https://t.co/czgFjNFNds
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MercadoLibre $MELI is a high quality compounder at a very reasonable price. Here's a snapshot of the company💎👇 https://t.co/czgFjNFNds
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Dimitry Nakhla | Babylon Capital®
Less than 2 months ago I stated:
“Today at $254💵 $V appears to be ONE OF THE BEST RISK-REWARD opportunities in today’s market & a strong consideration for investment”
Since then, $V shares rallied +12.5%, despite the market’s recent sell off ✅
As I stated in the post attached below 👇🏽
“As you can see, $V appears to have attractive return potential EVEN if we assume >25x earnings, a multiple well-below its 10-year mean & more importantly — a multiple justified by its growth rate AND quality
I consider $V one of the best businesses in the world & as Warren Buffett says:
“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price”
$V is even trading at a valuation better than just a fair price”
#stocks #investing"
A sober valuation analysis on $V 🧘🏽♂️
•NTM P/E Ratio: 23.73x
•10-Year Mean: 28.11x
•NTM FCF Yield: 4.20%
•10-Year Mean: 4.08%
As you can see, $V appears to be trading below fair value
Going forward, investors can receive ~18% MORE in earnings per share & ~3% MORE in FCF per share 🧠***
Before we get into valuation, let’s take a look at why $V is a super business
BALANCE SHEET✅
•Cash & Short-Term Inv: $16.64B
•Long-Term Debt: $20.60B
$V has a great balance sheet, an AA- S&P Credit Rating, & 31x FFO Interest Coverage Ratio
RETURN ON CAPITAL✅
•2019: 27.5%
•2020: 21.4%
•2021: 24.2%
•2022: 30.7%
•2023: 33.7%
•LTM: 35.7%
RETURN ON EQUITY✅
•2019: 35.2%
•2020: 30.7%
•2021: 33.4%
•2022: 40.9%
•2023: 46.5%
•LTM: 48.5%
$V has strong return metrics, highlighting the financial efficiency of the business
REVENUES✅
•2013: $11.78B
•2023: $32.65B
•CAGR: 10.73%
FREE CASH FLOW✅
•2013: $2.55B
•2023: $19.70B
•CAGR: 22.68%
NORMALIZED EPS✅
•2013: $1.90
•2023: $8.77
•CAGR: 16.52%
PAID DIVIDENDS✅
•2013: $0.35
•2023: $1.87
•CAGR: 18.24%
SHARE BUYBACKS✅
•2013 Shares Outstanding: 2.62B
•LTM Shares Outstanding: 2.03B
By reducing its shares outstanding 22.5%, $V increased its EPS by 29% (assuming 0 growth)
MARGINS✅
•LTM Gross Margins: 97.8%
•LTM Operating Margins: 66.9%
•LTM Net Income Margins: 53.9%
***NOW TO VALUATION 🧠
As stated above, investors can expect to receive ~18% MORE in EPS & ~3% MORE in FCF per share
Using Benjamin Graham’s 2G rule of thumb, $V has to grow earnings at an 11.87% CAGR over the next several years to justify its valuation
Today, analysts anticipate 2024 - 2026 EPS growth over the next few years to be slightly more than the (11.87%) required growth rate:
2024E: $9.92 (13.1% YoY) *FY Sep
2025E: $11.09 (11.8% YoY)
2026E: $12.57 (13.3% YoY)
$V has an excellent track record of meeting analyst estimates ~2 years out, so let’s assume $V ends 2026 with $12.57 in EPS & see its CAGR potential assuming different multiples
28x P/E: $351.96💵 … ~16.4% CAGR
27x P/E: $339.39💵 … ~14.5% CAGR
26x P/E: $326.82💵 … ~12.6% CAGR
25x P/E: $314.25💵 … ~10.8% CAGR
As you can see, $V appears to have attractive return potential EVEN if we assume >25x earnings, a multiple well-below its 10-year mean & more importantly — a multiple justified by its growth rate AND quality
I consider $V one of the best businesses in the world & as Warren Buffett says:
“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price”
$V is even trading at a valuation better than just a fair price
Today at $254💵 $V appears to be one of the best risk-reward opportunities in today’s market & a strong consideration for investment
#stocks #investing
___
𝐃𝐈𝐒𝐂𝐋𝐎𝐒𝐔𝐑𝐄‼️: 𝐓𝐡𝐢𝐬 𝐢𝐬 𝐍𝐎𝐓 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐀𝐝𝐯𝐢𝐜𝐞. 𝐁𝐚𝐛𝐲𝐥𝐨𝐧 𝐂𝐚𝐩𝐢𝐭𝐚𝐥® 𝐚𝐧𝐝 𝐢𝐭𝐬 𝐫𝐞𝐩𝐫𝐞𝐬𝐞𝐧𝐭𝐚𝐭𝐢𝐯𝐞𝐬 𝐦𝐚𝐲 𝐡𝐚𝐯𝐞 𝐩𝐨𝐬𝐢𝐭𝐢𝐨[...]
Less than 2 months ago I stated:
“Today at $254💵 $V appears to be ONE OF THE BEST RISK-REWARD opportunities in today’s market & a strong consideration for investment”
Since then, $V shares rallied +12.5%, despite the market’s recent sell off ✅
As I stated in the post attached below 👇🏽
“As you can see, $V appears to have attractive return potential EVEN if we assume >25x earnings, a multiple well-below its 10-year mean & more importantly — a multiple justified by its growth rate AND quality
I consider $V one of the best businesses in the world & as Warren Buffett says:
“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price”
$V is even trading at a valuation better than just a fair price”
#stocks #investing"
A sober valuation analysis on $V 🧘🏽♂️
•NTM P/E Ratio: 23.73x
•10-Year Mean: 28.11x
•NTM FCF Yield: 4.20%
•10-Year Mean: 4.08%
As you can see, $V appears to be trading below fair value
Going forward, investors can receive ~18% MORE in earnings per share & ~3% MORE in FCF per share 🧠***
Before we get into valuation, let’s take a look at why $V is a super business
BALANCE SHEET✅
•Cash & Short-Term Inv: $16.64B
•Long-Term Debt: $20.60B
$V has a great balance sheet, an AA- S&P Credit Rating, & 31x FFO Interest Coverage Ratio
RETURN ON CAPITAL✅
•2019: 27.5%
•2020: 21.4%
•2021: 24.2%
•2022: 30.7%
•2023: 33.7%
•LTM: 35.7%
RETURN ON EQUITY✅
•2019: 35.2%
•2020: 30.7%
•2021: 33.4%
•2022: 40.9%
•2023: 46.5%
•LTM: 48.5%
$V has strong return metrics, highlighting the financial efficiency of the business
REVENUES✅
•2013: $11.78B
•2023: $32.65B
•CAGR: 10.73%
FREE CASH FLOW✅
•2013: $2.55B
•2023: $19.70B
•CAGR: 22.68%
NORMALIZED EPS✅
•2013: $1.90
•2023: $8.77
•CAGR: 16.52%
PAID DIVIDENDS✅
•2013: $0.35
•2023: $1.87
•CAGR: 18.24%
SHARE BUYBACKS✅
•2013 Shares Outstanding: 2.62B
•LTM Shares Outstanding: 2.03B
By reducing its shares outstanding 22.5%, $V increased its EPS by 29% (assuming 0 growth)
MARGINS✅
•LTM Gross Margins: 97.8%
•LTM Operating Margins: 66.9%
•LTM Net Income Margins: 53.9%
***NOW TO VALUATION 🧠
As stated above, investors can expect to receive ~18% MORE in EPS & ~3% MORE in FCF per share
Using Benjamin Graham’s 2G rule of thumb, $V has to grow earnings at an 11.87% CAGR over the next several years to justify its valuation
Today, analysts anticipate 2024 - 2026 EPS growth over the next few years to be slightly more than the (11.87%) required growth rate:
2024E: $9.92 (13.1% YoY) *FY Sep
2025E: $11.09 (11.8% YoY)
2026E: $12.57 (13.3% YoY)
$V has an excellent track record of meeting analyst estimates ~2 years out, so let’s assume $V ends 2026 with $12.57 in EPS & see its CAGR potential assuming different multiples
28x P/E: $351.96💵 … ~16.4% CAGR
27x P/E: $339.39💵 … ~14.5% CAGR
26x P/E: $326.82💵 … ~12.6% CAGR
25x P/E: $314.25💵 … ~10.8% CAGR
As you can see, $V appears to have attractive return potential EVEN if we assume >25x earnings, a multiple well-below its 10-year mean & more importantly — a multiple justified by its growth rate AND quality
I consider $V one of the best businesses in the world & as Warren Buffett says:
“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price”
$V is even trading at a valuation better than just a fair price
Today at $254💵 $V appears to be one of the best risk-reward opportunities in today’s market & a strong consideration for investment
#stocks #investing
___
𝐃𝐈𝐒𝐂𝐋𝐎𝐒𝐔𝐑𝐄‼️: 𝐓𝐡𝐢𝐬 𝐢𝐬 𝐍𝐎𝐓 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐀𝐝𝐯𝐢𝐜𝐞. 𝐁𝐚𝐛𝐲𝐥𝐨𝐧 𝐂𝐚𝐩𝐢𝐭𝐚𝐥® 𝐚𝐧𝐝 𝐢𝐭𝐬 𝐫𝐞𝐩𝐫𝐞𝐬𝐞𝐧𝐭𝐚𝐭𝐢𝐯𝐞𝐬 𝐦𝐚𝐲 𝐡𝐚𝐯𝐞 𝐩𝐨𝐬𝐢𝐭𝐢𝐨[...]
Offshore
Dimitry Nakhla | Babylon Capital® Less than 2 months ago I stated: “Today at $254💵 $V appears to be ONE OF THE BEST RISK-REWARD opportunities in today’s market & a strong consideration for investment” Since then, $V shares rallied +12.5%, despite the market’s…
𝐧𝐬 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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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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