Offshore
Photo
Stock Analysis Compilation
Artemis on Sandoz $SDZ SW
Thesis: Sandoz is primed for growth with its biosimilar portfolio, capitalizing on expiring biologic exclusivity and commanding premium pricing in a low-competition market
(Extract from their Q3 letter) https://t.co/ep7NkIHaB8
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Artemis on Sandoz $SDZ SW
Thesis: Sandoz is primed for growth with its biosimilar portfolio, capitalizing on expiring biologic exclusivity and commanding premium pricing in a low-competition market
(Extract from their Q3 letter) https://t.co/ep7NkIHaB8
tweet
Hidden Value Gems
LVMH is down 19% YTD, still not too cheap, close to 20x fwd PE, but reasonable assuming luxury recovery, high ROIC/margins and its moat.
At what level would you buy it without any further thinking?
$MC.PA #LVMH
- I already own it
- Buying it now
- Not my type of business
- Under €500
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LVMH is down 19% YTD, still not too cheap, close to 20x fwd PE, but reasonable assuming luxury recovery, high ROIC/margins and its moat.
At what level would you buy it without any further thinking?
$MC.PA #LVMH
- I already own it
- Buying it now
- Not my type of business
- Under €500
tweet
Offshore
Photo
Hidden Value Gems
Anyone looked at $REAL ?
Seems like the rich are more cautious with their money too.
Still a loss-making business, but sales growing faster than at the luxury peers and the company is approaching breakeven. https://t.co/DYR80yp1Kv
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Anyone looked at $REAL ?
Seems like the rich are more cautious with their money too.
Still a loss-making business, but sales growing faster than at the luxury peers and the company is approaching breakeven. https://t.co/DYR80yp1Kv
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Offshore
Photo
Stock Analysis Compilation
Artisan on Novonesis $NSISB DC
Thesis: Novonesis transforms industries with sustainable biosolutions, leveraging innovation and cost synergies for long-term growth
(Extract from their Q3 letter) https://t.co/piEkI0USos
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Artisan on Novonesis $NSISB DC
Thesis: Novonesis transforms industries with sustainable biosolutions, leveraging innovation and cost synergies for long-term growth
(Extract from their Q3 letter) https://t.co/piEkI0USos
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Offshore
Video
Startup Archive
Sam Altman on the biggest mistake startup CEOs make when scaling a company
“When you’re a Seed or Series A company, you spend a huge amount of effort recruiting, but almost no effort retaining talent — and that is [the right strategy] at the beginning. But if you don’t shift to viewing retaining talent as much of your job as recruiting talent, you eventually have some level of a disaster on your hands.”
Sam recalls Mark Zuckerberg speaking at Y Combinator and saying he only hires people he’d report to if the roles were reversed. Sam reflects on this:
“If you’re hiring people that are that good — which you should be doing — they have as many opportunities as you do… And so if you don’t make the role good enough that you yourself would stay in it, then you have a hard time retaining your best people for a long period of time.”
Sam gives three pieces of tactical advice for CEOs who want to retain their best people:
1. Spend one-on-one time with your best people
“The thing that your best 5-10 people crave the most is time with you, the CEO. And that is something that as people get busier, they spend less and less time on. Some of the best CEOs in our portfolio, every month they will take out for a one-on-one dinner or drinks or something each of their best 10 people. This is a huge time commitment. If you think about it, you only get 30 dinner slots in a month. It’s a really big thing to do. But I think it actually works because that is the thing these people really crave… They want you to ask them what you think they should be doing and listen to them and have a personal connection. That’s super important.”
2. Continually give them more responsibility
“I think if you stop giving people more responsibility, they will eventually leave. If they get to take on new tasks every year or additional tasks every year, they’re happier.”
3. Proactively re-up their compensation
“I think most founders are very bad about proactively re-upping — to the level that they should — their top 5-10 lieutenants.”
Video source: @khoslaventures (2016)
tweet
Sam Altman on the biggest mistake startup CEOs make when scaling a company
“When you’re a Seed or Series A company, you spend a huge amount of effort recruiting, but almost no effort retaining talent — and that is [the right strategy] at the beginning. But if you don’t shift to viewing retaining talent as much of your job as recruiting talent, you eventually have some level of a disaster on your hands.”
Sam recalls Mark Zuckerberg speaking at Y Combinator and saying he only hires people he’d report to if the roles were reversed. Sam reflects on this:
“If you’re hiring people that are that good — which you should be doing — they have as many opportunities as you do… And so if you don’t make the role good enough that you yourself would stay in it, then you have a hard time retaining your best people for a long period of time.”
Sam gives three pieces of tactical advice for CEOs who want to retain their best people:
1. Spend one-on-one time with your best people
“The thing that your best 5-10 people crave the most is time with you, the CEO. And that is something that as people get busier, they spend less and less time on. Some of the best CEOs in our portfolio, every month they will take out for a one-on-one dinner or drinks or something each of their best 10 people. This is a huge time commitment. If you think about it, you only get 30 dinner slots in a month. It’s a really big thing to do. But I think it actually works because that is the thing these people really crave… They want you to ask them what you think they should be doing and listen to them and have a personal connection. That’s super important.”
2. Continually give them more responsibility
“I think if you stop giving people more responsibility, they will eventually leave. If they get to take on new tasks every year or additional tasks every year, they’re happier.”
3. Proactively re-up their compensation
“I think most founders are very bad about proactively re-upping — to the level that they should — their top 5-10 lieutenants.”
Video source: @khoslaventures (2016)
tweet
Offshore
Photo
Dimitry Nakhla | Babylon Capital®
3 months ago I stated:
“Today at $3,618.86💵 $BKNG appears to be a decent consideration for investment”
Since then, $BKNG shares rallied +44% ✅
As I suggested in the post attached below👇🏽
“As you can see, $BKNG appears to have attractive return potential if we assume >19x earnings, a valuation below both its current & 3-year mean (allowing for slight multiple compression, an added layer of a margin of safety)
Also, $BKNG EPS growth rate ( >10%) more than justifies a >20x multiple”
$BKNG has plenty room for margin expansion💰
____
While a rapid appreciation in share price can be gratifying, it's often counterintuitive for long-term investors
Ideally, I prefer to see these high-quality businesses trade at attractive valuations for an extended period, allowing for the accumulation of shares at a more favorable price
This enables us to build a larger position in a company we believe in, ultimately increasing our potential for long-term returns
________
#stocks #investing"
A sober valuation analysis on $BKNG 🧘🏽♂️
•NTM P/E Ratio: 19.75x
•3-Year Mean: 21.24x
•NTM FCF Yield: 5.63%
•3-Year Mean: 4.79%
As you can see, $BKNG appears to be trading below fair value
Going forward, investors can receive ~7% MORE in earnings per share & ~17% MORE in FCF per share 🧠***
Before we get into valuation, let’s take a look at why $BKNG is a great business
BALANCE SHEET✅
•Cash & Short-Term Inv: $16.33B
•Long-Term Debt: $13.36B
$BKNG has a great balance sheet, an A- S&P Credit Rating, & 8.41x FFO Interest Coverage Ratio
RETURN ON CAPITAL✅
•2019: 33.3%
•2020: 2.7%
•2021: 14.2%
•2022: 29.1%
•2023: 47.3%
•LTM: 48.4%
$BKNG has strong ROIC, highlighting the financial efficiency of the business
REVENUES✅
•2013: $6.79B
•2023: $21.37B
•CAGR: 12.14%
FREE CASH FLOW✅
•2013: $2.22B
•2023: $7.00B
•CAGR: 12.16%
NORMALIZED EPS✅
•2013: $41.72
•2023: $152.22
•CAGR: 13.81%
SHARE BUYBACKS✅
•2013 Shares Outstanding: 52.41M
•LTM Shares Outstanding: 35.04M
By reducing its shares outstanding 33%, $BKNG increased its EPS by 50% (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 ~7% MORE in EPS & ~17% MORE in FCF per share
Using Benjamin Graham’s 2G rule of thumb, $BKNG has to grow earnings at a 9.88% CAGR over the next several years to justify its valuation
Today, analysts anticipate 2024 - 2026 EPS growth over the next few years to be just more than (9.88%) required growth rate:
2024E: $175.64 (15.4% YoY) *FY Dec
2025E: $201.51 (14.7% YoY)
2026E: $236.96 (17.6% YoY)
$BKNG has a decent track record of meeting analyst estimates ~2 years out, so let’s assume $BKNG ends 2026 with $236.96 in EPS & see its CAGR potential assuming different multiples
21x P/E: $4,976.16💵 … ~15.5% CAGR
20x P/E: $4,739.20💵 … ~13.1% CAGR
19x P/E: $4,502.24💵 … ~10.7% CAGR
18x P/E: $4,265.28💵 … ~8.2% CAGR
17x P/E: $4,028.32💵 … ~5.6% CAGR
As you can see, $BKNG appears to have attractive return potential if we assume >19x earnings, a valuation below both its current & 3-year mean (allowing for slight multiple compression, an added layer of a margin of safety)
Also, $BKNG EPS growth rate ( >10%) more than justifies a >20x multiple
Today at $3,618.86💵 $BKNG appears to be a decent consideration for investment
I’d consider $BKNG a great purchase closer to $3,400 (~18.50x multiple) roughly 6% below today’s share price or at $3,400.00💵
This is where I can reasonably expect ~11% CAGR assuming a conservative 18x 2026 earnings estimates, a large margin of safety
#stocks #investing
___
𝐃𝐈𝐒𝐂𝐋𝐎𝐒𝐔𝐑𝐄‼️: 𝐓𝐡𝐢𝐬 𝐢[...]
3 months ago I stated:
“Today at $3,618.86💵 $BKNG appears to be a decent consideration for investment”
Since then, $BKNG shares rallied +44% ✅
As I suggested in the post attached below👇🏽
“As you can see, $BKNG appears to have attractive return potential if we assume >19x earnings, a valuation below both its current & 3-year mean (allowing for slight multiple compression, an added layer of a margin of safety)
Also, $BKNG EPS growth rate ( >10%) more than justifies a >20x multiple”
$BKNG has plenty room for margin expansion💰
____
While a rapid appreciation in share price can be gratifying, it's often counterintuitive for long-term investors
Ideally, I prefer to see these high-quality businesses trade at attractive valuations for an extended period, allowing for the accumulation of shares at a more favorable price
This enables us to build a larger position in a company we believe in, ultimately increasing our potential for long-term returns
________
#stocks #investing"
A sober valuation analysis on $BKNG 🧘🏽♂️
•NTM P/E Ratio: 19.75x
•3-Year Mean: 21.24x
•NTM FCF Yield: 5.63%
•3-Year Mean: 4.79%
As you can see, $BKNG appears to be trading below fair value
Going forward, investors can receive ~7% MORE in earnings per share & ~17% MORE in FCF per share 🧠***
Before we get into valuation, let’s take a look at why $BKNG is a great business
BALANCE SHEET✅
•Cash & Short-Term Inv: $16.33B
•Long-Term Debt: $13.36B
$BKNG has a great balance sheet, an A- S&P Credit Rating, & 8.41x FFO Interest Coverage Ratio
RETURN ON CAPITAL✅
•2019: 33.3%
•2020: 2.7%
•2021: 14.2%
•2022: 29.1%
•2023: 47.3%
•LTM: 48.4%
$BKNG has strong ROIC, highlighting the financial efficiency of the business
REVENUES✅
•2013: $6.79B
•2023: $21.37B
•CAGR: 12.14%
FREE CASH FLOW✅
•2013: $2.22B
•2023: $7.00B
•CAGR: 12.16%
NORMALIZED EPS✅
•2013: $41.72
•2023: $152.22
•CAGR: 13.81%
SHARE BUYBACKS✅
•2013 Shares Outstanding: 52.41M
•LTM Shares Outstanding: 35.04M
By reducing its shares outstanding 33%, $BKNG increased its EPS by 50% (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 ~7% MORE in EPS & ~17% MORE in FCF per share
Using Benjamin Graham’s 2G rule of thumb, $BKNG has to grow earnings at a 9.88% CAGR over the next several years to justify its valuation
Today, analysts anticipate 2024 - 2026 EPS growth over the next few years to be just more than (9.88%) required growth rate:
2024E: $175.64 (15.4% YoY) *FY Dec
2025E: $201.51 (14.7% YoY)
2026E: $236.96 (17.6% YoY)
$BKNG has a decent track record of meeting analyst estimates ~2 years out, so let’s assume $BKNG ends 2026 with $236.96 in EPS & see its CAGR potential assuming different multiples
21x P/E: $4,976.16💵 … ~15.5% CAGR
20x P/E: $4,739.20💵 … ~13.1% CAGR
19x P/E: $4,502.24💵 … ~10.7% CAGR
18x P/E: $4,265.28💵 … ~8.2% CAGR
17x P/E: $4,028.32💵 … ~5.6% CAGR
As you can see, $BKNG appears to have attractive return potential if we assume >19x earnings, a valuation below both its current & 3-year mean (allowing for slight multiple compression, an added layer of a margin of safety)
Also, $BKNG EPS growth rate ( >10%) more than justifies a >20x multiple
Today at $3,618.86💵 $BKNG appears to be a decent consideration for investment
I’d consider $BKNG a great purchase closer to $3,400 (~18.50x multiple) roughly 6% below today’s share price or at $3,400.00💵
This is where I can reasonably expect ~11% CAGR assuming a conservative 18x 2026 earnings estimates, a large margin of safety
#stocks #investing
___
𝐃𝐈𝐒𝐂𝐋𝐎𝐒𝐔𝐑𝐄‼️: 𝐓𝐡𝐢𝐬 𝐢[...]
Offshore
Dimitry Nakhla | Babylon Capital® 3 months ago I stated: “Today at $3,618.86💵 $BKNG appears to be a decent consideration for investment” Since then, $BKNG shares rallied +44% ✅ As I suggested in the post attached below👇🏽 “As you can see, $BKNG appears…
𝐬 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. "- 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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Dimitry Nakhla | Babylon Capital®
6 High-Quality Stocks Where Earnings Growth Outpaced Share Price YTD 💸 — The Last Stock Got Cheaper Despite Being +21% YTD 👀
🤖 Nvidia $NVDA
•YTD: +176%
•Jan NTM P/E: 24.78x
•NTM P/E: 34.72x
•Multiple Change: +40%
📸 Meta Platforms $META
•YTD: +62%
•Jan NTM P/E: 20.32x
•NTM P/E: 23.48x
•Multiple Change: +15%
💵 Mastercard $MA
•YTD: +24%
•Jan NTM P/E: 30.86x
•NTM P/E: 33.66x
•Multiple Change: +9%
📦 Amazon $AMZN
•YTD: +37%
•Jan NTM P/OCF: 13.08x
•NTM P/OCF: 14.03x
•Multiple Change: +7%
💳 Visa $V
•YTD: +20%
•Jan NTM P/E: 26.20x
•NTM P/E: 27.80x
•Multiple Change: +5%
🖱️ Alphabet $GOOG
•YTD: +21%
•Jan NTM P/E: 21.45x
•NTM P/E: 19.79x
•Multiple Change: -7%
____
#stocks #investing
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6 High-Quality Stocks Where Earnings Growth Outpaced Share Price YTD 💸 — The Last Stock Got Cheaper Despite Being +21% YTD 👀
🤖 Nvidia $NVDA
•YTD: +176%
•Jan NTM P/E: 24.78x
•NTM P/E: 34.72x
•Multiple Change: +40%
📸 Meta Platforms $META
•YTD: +62%
•Jan NTM P/E: 20.32x
•NTM P/E: 23.48x
•Multiple Change: +15%
💵 Mastercard $MA
•YTD: +24%
•Jan NTM P/E: 30.86x
•NTM P/E: 33.66x
•Multiple Change: +9%
📦 Amazon $AMZN
•YTD: +37%
•Jan NTM P/OCF: 13.08x
•NTM P/OCF: 14.03x
•Multiple Change: +7%
💳 Visa $V
•YTD: +20%
•Jan NTM P/E: 26.20x
•NTM P/E: 27.80x
•Multiple Change: +5%
🖱️ Alphabet $GOOG
•YTD: +21%
•Jan NTM P/E: 21.45x
•NTM P/E: 19.79x
•Multiple Change: -7%
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#stocks #investing
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