Offshore
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โ Alvin
I am extra excited for the Xiaomi 15 Series mainly because of the 15 Ultra and its new camera system.
I hope they have made some big improvements in the processing algorithm this time.
Dual telephoto solution >>> https://t.co/Wi2y4MlB7Y
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I am extra excited for the Xiaomi 15 Series mainly because of the 15 Ultra and its new camera system.
I hope they have made some big improvements in the processing algorithm this time.
Dual telephoto solution >>> https://t.co/Wi2y4MlB7Y
tweet
Offshore
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โ Alvin
RT @ShishirShelke1: Which processor does your current smartphone have? ๐
Mine: Snapdragon 8 Elite ๐ https://t.co/i3niU9Ba1m
tweet
RT @ShishirShelke1: Which processor does your current smartphone have? ๐
Mine: Snapdragon 8 Elite ๐ https://t.co/i3niU9Ba1m
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Offshore
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โ Hidden Value Gems
Donโt forget about second-level thinking:
โSince Donald Trump landed in the White House, the benchmark Stoxx Europe 600 index has gained 5.7% compared with S&P 500, which has given back gains and is down 0.2% in the period.โ
And I cannot agree more:
โWe believe there is currently an extremely attractive opportunity to buy great businesses that trade on non-US exchanges . . . Companies with similar products, end markets, and growth prospects, can trade at vastly different valuations,โ he said referring to lower European earnings multiples.
via @FT
tweet
Donโt forget about second-level thinking:
โSince Donald Trump landed in the White House, the benchmark Stoxx Europe 600 index has gained 5.7% compared with S&P 500, which has given back gains and is down 0.2% in the period.โ
And I cannot agree more:
โWe believe there is currently an extremely attractive opportunity to buy great businesses that trade on non-US exchanges . . . Companies with similar products, end markets, and growth prospects, can trade at vastly different valuations,โ he said referring to lower European earnings multiples.
via @FT
tweet
Offshore
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โ Dimitry Nakhla | Babylon Capitalยฎ
RT @DimitryNakhla: 2 months ago I stated:
โI consider $MELI a strong buy closer to $1,700๐ต (~9% below todayโs price) where I can reasonably expect ~14% CAGR while assuming a 36x end multiple, ensuring some margin of safetyโ
Since reaching my $1,700 target $MELI shares have rallied +33%โ
As I suggested in the post attached below๐๐ฝ
โ$MELI boasts an expansive growth trajectory, fueled by powerful network effects that should drive sustained momentum
Key factors contributing to its promising outlook include ๐
1. Margin expansion
2. Unparalleled access to Latin America's burgeoning economy
3. Network effects that produce self-reinforcing dynamics ensuring long-term competitiveness, among other things
Those buying $MELI today at $1856๐ต are buying it for a fair price, with little margin of safety โ however, these growth rates have to be revised down substantially for $MELI to miss the mark, even if the company grows earnings at 25% CAGR over the next 5 years, shareholders will likely end up with a decent return
I consider $MELI a strong buy closer to $1,700๐ต (~9% below todayโs price) where I can reasonably expect ~14% CAGR while assuming a 36x end multiple, ensuring some margin of safetyโ
____
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
A quality valuation analysis on $MELI ๐ง๐ฝโโ๏ธ
โขNTM P/E Ratio: 49.60x
โข1-Year Mean: 48.36x
As you can see, $MELI appears to be trading near fair value
Going forward, investors can receive roughly the same in earnings per share ๐ง ***
Before we get into valuation, letโs take a look at why $MELI is a great business
BALANCE SHEETโ
โขCash & Short-Term Inv: $6.67B
โขLong-Term Debt: $3.04B
$MELI has a strong balance sheet, an ok BB+ S&P Credit Rating & 20x FFO Interest Coverage
RETURN ON CAPITAL๐โก๏ธโ
โข2019: (4.8%)
โข2020: 3.7%
โข2021: 8.1%
โข2022: 14.2%
โข2023: 25.3%
โขLTM: 20.1%
RETURN ON EQUITY๐โก๏ธโ
โข2019: (14.2%)
โข2020: (0.1%)
โข2021: 5.2%
โข2022: 28.7%
โข2023: 40.3%
โขLTM: 42.6%
$MELI has strong and improved return metrics, highlighting the financial efficiency of the business
REVENUESโ
โข2018: $1.44B
โข2023: $14.47B
โขCAGR: 58.64%
FREE CASH FLOWโ
โข2018: $133.35M
โข2023: $4.63B
โขCAGR: 203.29%
NORMALIZED EPSโ
โข2018: ($0.82)
โข2023: $22.84
SHARE BUYBACKSโ
โข2013 Shares Outstanding: 44.53M
โขLTM Shares Outstanding: 51.28M
MARGINS๐โก๏ธโ
โขLTM Gross Margins: 52.5%
โขLTM Operating Margins: 11.4%
โขLTM Net Income Margins: 7.8%
***NOW TO VALUATION ๐ง
As stated above, investors can expect to receive roughly the same in EPS
Using Benjamin Grahamโs 2G rule of thumb, $MELI has to grow earnings at a 24.80% CAGR over the next several years to justify its valuation
Today, analysts anticipate 2025 - 2026 EPS growth over the next few years to be more than the (24.80%) required growth rate:
2024E: $33.59 (47.1% YoY) *FY Dec
2025E: $45.76 (36.2% YoY)
2026E: $62.50 (36.6% YoY)
$MELI has an ok track record of meeting analyst estimates ~2 years out, but letโs assume $MELI ends 2026 with $62.50 in EPS & see its CAGR potential assuming different multiples
40x P/E: $2500๐ต โฆ ~15.5% CAGR
38x P/E: $2375๐ต โฆ ~12.7% CAGR
36x P/E: $2250๐ต โฆ ~9.7% CAGR
34x P/E: $2125๐ต โฆ ~6.7% CAGR
As you can see, $MELI appears to have attractive return potential IF we assume >38x earnings (a multiple justified by its growth rate & moat)
$MELI boasts an ex[...]
RT @DimitryNakhla: 2 months ago I stated:
โI consider $MELI a strong buy closer to $1,700๐ต (~9% below todayโs price) where I can reasonably expect ~14% CAGR while assuming a 36x end multiple, ensuring some margin of safetyโ
Since reaching my $1,700 target $MELI shares have rallied +33%โ
As I suggested in the post attached below๐๐ฝ
โ$MELI boasts an expansive growth trajectory, fueled by powerful network effects that should drive sustained momentum
Key factors contributing to its promising outlook include ๐
1. Margin expansion
2. Unparalleled access to Latin America's burgeoning economy
3. Network effects that produce self-reinforcing dynamics ensuring long-term competitiveness, among other things
Those buying $MELI today at $1856๐ต are buying it for a fair price, with little margin of safety โ however, these growth rates have to be revised down substantially for $MELI to miss the mark, even if the company grows earnings at 25% CAGR over the next 5 years, shareholders will likely end up with a decent return
I consider $MELI a strong buy closer to $1,700๐ต (~9% below todayโs price) where I can reasonably expect ~14% CAGR while assuming a 36x end multiple, ensuring some margin of safetyโ
____
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
A quality valuation analysis on $MELI ๐ง๐ฝโโ๏ธ
โขNTM P/E Ratio: 49.60x
โข1-Year Mean: 48.36x
As you can see, $MELI appears to be trading near fair value
Going forward, investors can receive roughly the same in earnings per share ๐ง ***
Before we get into valuation, letโs take a look at why $MELI is a great business
BALANCE SHEETโ
โขCash & Short-Term Inv: $6.67B
โขLong-Term Debt: $3.04B
$MELI has a strong balance sheet, an ok BB+ S&P Credit Rating & 20x FFO Interest Coverage
RETURN ON CAPITAL๐โก๏ธโ
โข2019: (4.8%)
โข2020: 3.7%
โข2021: 8.1%
โข2022: 14.2%
โข2023: 25.3%
โขLTM: 20.1%
RETURN ON EQUITY๐โก๏ธโ
โข2019: (14.2%)
โข2020: (0.1%)
โข2021: 5.2%
โข2022: 28.7%
โข2023: 40.3%
โขLTM: 42.6%
$MELI has strong and improved return metrics, highlighting the financial efficiency of the business
REVENUESโ
โข2018: $1.44B
โข2023: $14.47B
โขCAGR: 58.64%
FREE CASH FLOWโ
โข2018: $133.35M
โข2023: $4.63B
โขCAGR: 203.29%
NORMALIZED EPSโ
โข2018: ($0.82)
โข2023: $22.84
SHARE BUYBACKSโ
โข2013 Shares Outstanding: 44.53M
โขLTM Shares Outstanding: 51.28M
MARGINS๐โก๏ธโ
โขLTM Gross Margins: 52.5%
โขLTM Operating Margins: 11.4%
โขLTM Net Income Margins: 7.8%
***NOW TO VALUATION ๐ง
As stated above, investors can expect to receive roughly the same in EPS
Using Benjamin Grahamโs 2G rule of thumb, $MELI has to grow earnings at a 24.80% CAGR over the next several years to justify its valuation
Today, analysts anticipate 2025 - 2026 EPS growth over the next few years to be more than the (24.80%) required growth rate:
2024E: $33.59 (47.1% YoY) *FY Dec
2025E: $45.76 (36.2% YoY)
2026E: $62.50 (36.6% YoY)
$MELI has an ok track record of meeting analyst estimates ~2 years out, but letโs assume $MELI ends 2026 with $62.50 in EPS & see its CAGR potential assuming different multiples
40x P/E: $2500๐ต โฆ ~15.5% CAGR
38x P/E: $2375๐ต โฆ ~12.7% CAGR
36x P/E: $2250๐ต โฆ ~9.7% CAGR
34x P/E: $2125๐ต โฆ ~6.7% CAGR
As you can see, $MELI appears to have attractive return potential IF we assume >38x earnings (a multiple justified by its growth rate & moat)
$MELI boasts an ex[...]
Offshore
โ Dimitry Nakhla | Babylon Capitalยฎ RT @DimitryNakhla: 2 months ago I stated: โI consider $MELI a strong buy closer to $1,700๐ต (~9% below todayโs price) where I can reasonably expect ~14% CAGR while assuming a 36x end multiple, ensuring some margin of safetyโโฆ
pansive growth trajectory, fueled by powerful network effects that should drive sustained momentum
Key factors contributing to its promising outlook include ๐
1. Margin expansion
2. Unparalleled access to Latin America's burgeoning economy
3. Network effects that produce self-reinforcing dynamics ensuring long-term competitiveness, among other things
Those buying $MELI today at $1856๐ต are buying it for a fair price, with little margin of safety โ however, these growth rates have to be revised down substantially for $MELI to miss the mark, even if the company grows earnings at 25% CAGR over the next 5 years, shareholders will likely end up with a decent return
I consider $MELI a strong buy closer to $1,700๐ต (~9% below todayโs price) where I can reasonably expect ~14% CAGR while assuming a 36x end multiple, ensuring some margin of safety
#stocks #investing
___
๐๐๐๐๐๐๐๐๐๐โผ๏ธ: ๐๐ก๐ข๐ฌ ๐ข๐ฌ ๐๐๐ ๐๐ง๐ฏ๐๐ฌ๐ญ๐ฆ๐๐ง๐ญ ๐๐๐ฏ๐ข๐๐. ๐๐๐๐ฒ๐ฅ๐จ๐ง ๐๐๐ฉ๐ข๐ญ๐๐ฅยฎ ๐๐ง๐ ๐ข๐ญ๐ฌ ๐ซ๐๐ฉ๐ซ๐๐ฌ๐๐ง๐ญ๐๐ญ๐ข๐ฏ๐๐ฌ ๐ฆ๐๐ฒ ๐ก๐๐ฏ๐ ๐ฉ๐จ๐ฌ๐ข๐ญ๐ข๐จ๐ง๐ฌ ๐ข๐ง ๐ญ๐ก๐ ๐ฌ๐๐๐ฎ๐ซ๐ข๐ญ๐ข๐๐ฌ ๐๐ข๐ฌ๐๐ฎ๐ฌ๐ฌ๐๐ ๐ข๐ง ๐ญ๐ก๐ข๐ฌ ๐ญ๐ฐ๐๐๐ญ.
๐๐ก๐ ๐ข๐ง๐๐จ๐ซ๐ฆ๐๐ญ๐ข๐จ๐ง ๐๐จ๐ง๐ญ๐๐ข๐ง๐๐ ๐ข๐ง ๐ญ๐ก๐ข๐ฌ ๐ญ๐ฐ๐๐๐ญ ๐ข๐ฌ ๐ข๐ง๐ญ๐๐ง๐๐๐ ๐๐จ๐ซ ๐ข๐ง๐๐จ๐ซ๐ฆ๐๐ญ๐ข๐จ๐ง๐๐ฅ ๐ฉ๐ฎ๐ซ๐ฉ๐จ๐ฌ๐๐ฌ ๐จ๐ง๐ฅ๐ฒ ๐๐ง๐ ๐ฌ๐ก๐จ๐ฎ๐ฅ๐ ๐ง๐จ๐ญ ๐๐ ๐๐จ๐ง๐ฌ๐ญ๐ซ๐ฎ๐๐ ๐๐ฌ ๐ข๐ง๐ฏ๐๐ฌ๐ญ๐ฆ๐๐ง๐ญ ๐๐๐ฏ๐ข๐๐ ๐ญ๐จ ๐ฆ๐๐๐ญ ๐ญ๐ก๐ ๐ฌ๐ฉ๐๐๐ข๐๐ข๐ ๐ง๐๐๐๐ฌ ๐จ๐ ๐๐ง๐ฒ ๐ข๐ง๐๐ข๐ฏ๐ข๐๐ฎ๐๐ฅ ๐จ๐ซ ๐ฌ๐ข๐ญ๐ฎ๐๐ญ๐ข๐จ๐ง. ๐๐๐ฌ๐ญ ๐ฉ๐๐ซ๐๐จ๐ซ๐ฆ๐๐ง๐๐ ๐ข๐ฌ ๐ง๐จ ๐ ๐ฎ๐๐ซ๐๐ง๐ญ๐๐ ๐จ๐ ๐๐ฎ๐ญ๐ฎ๐ซ๐ ๐ซ๐๐ฌ๐ฎ๐ฅ๐ญ๐ฌ.
๐๐ง๐๐จ๐ซ๐ฆ๐๐ญ๐ข๐จ๐ง ๐๐จ๐ง๐ญ๐๐ข๐ง๐๐ ๐ข๐ง ๐ญ๐ก๐ข๐ฌ ๐ญ๐ฐ๐๐๐ญ ๐ก๐๐ฌ ๐๐๐๐ง ๐จ๐๐ญ๐๐ข๐ง๐๐ ๐๐ซ๐จ๐ฆ ๐ฌ๐จ๐ฎ๐ซ๐๐๐ฌ ๐๐๐ฅ๐ข๐๐ฏ๐๐ ๐ญ๐จ ๐๐ ๐ซ๐๐ฅ๐ข๐๐๐ฅ๐, ๐๐ฎ๐ญ ๐ข๐ฌ ๐ง๐จ๐ญ ๐ ๐ฎ๐๐ซ๐๐ง๐ญ๐๐๐ ๐๐ฌ ๐ญ๐จ ๐๐จ๐ฆ๐ฉ๐ฅ๐๐ญ๐๐ง๐๐ฌ๐ฌ ๐จ๐ซ ๐๐๐๐ฎ๐ซ๐๐๐ฒ. - Dimitry Nakhla | Babylon Capitalยฎ tweet
Key factors contributing to its promising outlook include ๐
1. Margin expansion
2. Unparalleled access to Latin America's burgeoning economy
3. Network effects that produce self-reinforcing dynamics ensuring long-term competitiveness, among other things
Those buying $MELI today at $1856๐ต are buying it for a fair price, with little margin of safety โ however, these growth rates have to be revised down substantially for $MELI to miss the mark, even if the company grows earnings at 25% CAGR over the next 5 years, shareholders will likely end up with a decent return
I consider $MELI a strong buy closer to $1,700๐ต (~9% below todayโs price) where I can reasonably expect ~14% CAGR while assuming a 36x end multiple, ensuring some margin of safety
#stocks #investing
___
๐๐๐๐๐๐๐๐๐๐โผ๏ธ: ๐๐ก๐ข๐ฌ ๐ข๐ฌ ๐๐๐ ๐๐ง๐ฏ๐๐ฌ๐ญ๐ฆ๐๐ง๐ญ ๐๐๐ฏ๐ข๐๐. ๐๐๐๐ฒ๐ฅ๐จ๐ง ๐๐๐ฉ๐ข๐ญ๐๐ฅยฎ ๐๐ง๐ ๐ข๐ญ๐ฌ ๐ซ๐๐ฉ๐ซ๐๐ฌ๐๐ง๐ญ๐๐ญ๐ข๐ฏ๐๐ฌ ๐ฆ๐๐ฒ ๐ก๐๐ฏ๐ ๐ฉ๐จ๐ฌ๐ข๐ญ๐ข๐จ๐ง๐ฌ ๐ข๐ง ๐ญ๐ก๐ ๐ฌ๐๐๐ฎ๐ซ๐ข๐ญ๐ข๐๐ฌ ๐๐ข๐ฌ๐๐ฎ๐ฌ๐ฌ๐๐ ๐ข๐ง ๐ญ๐ก๐ข๐ฌ ๐ญ๐ฐ๐๐๐ญ.
๐๐ก๐ ๐ข๐ง๐๐จ๐ซ๐ฆ๐๐ญ๐ข๐จ๐ง ๐๐จ๐ง๐ญ๐๐ข๐ง๐๐ ๐ข๐ง ๐ญ๐ก๐ข๐ฌ ๐ญ๐ฐ๐๐๐ญ ๐ข๐ฌ ๐ข๐ง๐ญ๐๐ง๐๐๐ ๐๐จ๐ซ ๐ข๐ง๐๐จ๐ซ๐ฆ๐๐ญ๐ข๐จ๐ง๐๐ฅ ๐ฉ๐ฎ๐ซ๐ฉ๐จ๐ฌ๐๐ฌ ๐จ๐ง๐ฅ๐ฒ ๐๐ง๐ ๐ฌ๐ก๐จ๐ฎ๐ฅ๐ ๐ง๐จ๐ญ ๐๐ ๐๐จ๐ง๐ฌ๐ญ๐ซ๐ฎ๐๐ ๐๐ฌ ๐ข๐ง๐ฏ๐๐ฌ๐ญ๐ฆ๐๐ง๐ญ ๐๐๐ฏ๐ข๐๐ ๐ญ๐จ ๐ฆ๐๐๐ญ ๐ญ๐ก๐ ๐ฌ๐ฉ๐๐๐ข๐๐ข๐ ๐ง๐๐๐๐ฌ ๐จ๐ ๐๐ง๐ฒ ๐ข๐ง๐๐ข๐ฏ๐ข๐๐ฎ๐๐ฅ ๐จ๐ซ ๐ฌ๐ข๐ญ๐ฎ๐๐ญ๐ข๐จ๐ง. ๐๐๐ฌ๐ญ ๐ฉ๐๐ซ๐๐จ๐ซ๐ฆ๐๐ง๐๐ ๐ข๐ฌ ๐ง๐จ ๐ ๐ฎ๐๐ซ๐๐ง๐ญ๐๐ ๐จ๐ ๐๐ฎ๐ญ๐ฎ๐ซ๐ ๐ซ๐๐ฌ๐ฎ๐ฅ๐ญ๐ฌ.
๐๐ง๐๐จ๐ซ๐ฆ๐๐ญ๐ข๐จ๐ง ๐๐จ๐ง๐ญ๐๐ข๐ง๐๐ ๐ข๐ง ๐ญ๐ก๐ข๐ฌ ๐ญ๐ฐ๐๐๐ญ ๐ก๐๐ฌ ๐๐๐๐ง ๐จ๐๐ญ๐๐ข๐ง๐๐ ๐๐ซ๐จ๐ฆ ๐ฌ๐จ๐ฎ๐ซ๐๐๐ฌ ๐๐๐ฅ๐ข๐๐ฏ๐๐ ๐ญ๐จ ๐๐ ๐ซ๐๐ฅ๐ข๐๐๐ฅ๐, ๐๐ฎ๐ญ ๐ข๐ฌ ๐ง๐จ๐ญ ๐ ๐ฎ๐๐ซ๐๐ง๐ญ๐๐๐ ๐๐ฌ ๐ญ๐จ ๐๐จ๐ฆ๐ฉ๐ฅ๐๐ญ๐๐ง๐๐ฌ๐ฌ ๐จ๐ซ ๐๐๐๐ฎ๐ซ๐๐๐ฒ. - Dimitry Nakhla | Babylon Capitalยฎ tweet
Offshore
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โ Investing visuals
$SOFI Member count is up nearly 10x in five years.
2020: 1.1 million
2025: 10.1 million
๐คฏ https://t.co/lVJkryaJX3
tweet
$SOFI Member count is up nearly 10x in five years.
2020: 1.1 million
2025: 10.1 million
๐คฏ https://t.co/lVJkryaJX3
tweet