Valuentum Exclusive Analysis for the Discerning Investor

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Oct 10, 2021

PepsiCo Flexes Its Pricing Power
Image Shown: PepsiCo Inc is adeptly navigating various inflationary, labor, and logistical hurdles. Investors have started to warm back up to the name and its impressive pricing power over the past several months. On October 5, beverage and snack giant PepsiCo reported third-quarter earnings for fiscal 2021 (period ended September 4, 2021) that beat both consensus top- and bottom-line estimates. PepsiCo also raised its full-year guidance for fiscal 2021 in conjunction with the report.

Aug 3, 2021

Rounding Up the 2Q Earnings Reports of Some of America’s Most Recognizable Brands: Coca-Cola, McDonald’s, Ford, Boeing, and Procter & Gamble
Image Source: Valuentum. The world is bouncing back in a big way from the coronavirus (“COVID-19”) pandemic, and some of America’s top brands have put up impressive calendar second-quarter results. Ford’s performance may have been the most interesting from an investor perspective, and we continue to warn against Boeing in light of its weak cash-based fundamentals and the tremendous flexibility that program accounting can have with respect to GAAP financials. Though the following five companies are not included in the newsletter portfolios, they should be on your radar, especially as it relates to market-moving trends and economic information: Coca-Cola, McDonald’s, Ford, Boeing, and Procter & Gamble.

Jul 15, 2021

PepsiCo Beats Estimates, Raises Guidance
Image Source: PepsiCo Inc – CAGNY 2021 Presentation. On July 13, PepsiCo reported second-quarter fiscal 2021 earnings (period ended June 12, 2021) that beat both consensus top- and bottom-line estimates. Due to its strong performance during the first half of the fiscal year, PepsiCo raised its full-year guidance for fiscal 2021 in conjunction with its latest earnings report. Now the firm expects to post 6% organic sales growth (versus a mid-single-digit range previously) and 11% core constant currency EPS growth (versus a high-single-digit range previously) in fiscal 2021 on an annual basis. Foreign currency tailwinds favorably impacted its financial performance last fiscal quarter, and for the full fiscal year, PepsiCo sees these tailwinds boosting its net revenue and core EPS performance by ~100 basis points.

Jul 14, 2021

10 YEARS OF EXCELLENCE AT VALUENTUM
Join Valuentum as it celebrates its 10th anniversary of putting investors first!

Jun 27, 2021

Two Alerts and Bull Market On!
Image Source: Mike Cohen. "We like stocks in an inflationary environment, and we love big cap tech and large cap growth in any environment." -- Brian Nelson, CFA

Jun 18, 2021

ICYMI: Watch Valuentum's November 2019 Presentation on 'Value Trap' Now!
YOU WILL LEARN  ---  * The pitfalls of valuation multiple analysis and the risks of extrapolating some empirical quantitative conclusions.  * A critical framework to view and interpret stock price movements and stock valuation.  * The universal nature of enterprise valuation to all things finance from competitive advantage analysis to dividend-growth investing and beyond.

Jun 1, 2021

ICYMI -- Video: Exclusive 2020 -- Furthering the Financial Discipline
In this 40+ minute video jam-packed with must-watch content, Valuentum's President Brian Nelson talks about the Theory of Universal Valuation and how his work is furthering the financial discipline. Learn the pitfalls of factor investing and modern portfolio theory and how the efficient markets hypothesis holds little substance in the wake of COVID-19. He'll talk about what companies Valuentum likes and why, and which areas he's avoiding. This and more in Valuentum's 2020 Exclusive conference call.

May 6, 2021

3 Strong Dividend Payers to Consider Within Consumer Staples
Image: Kellogg has raised its dividend payout each year since 2005. Image Source: Kellogg. Kellogg, Colgate-Palmolive, and Clorox offer investors solid exposure to the consumer staples space, while showcasing impressive track records with respect to dividend growth. Each has a net debt position, but all three generate traditional free cash flow in excess of cash dividends paid, meaning growth in each of their payouts should be expected. Clorox has the highest Dividend Cushion ratio of 1.6 at this time (Kellogg’s is 0.1, while Colgate-Palmolive’s is 1.4), and as one might expect, Clorox’s dividend growth prospects are the strongest out of this bunch. For example, Clorox raised its annual payout more than 7% during fiscal 2020, while both Kellogg and Colgate-Palmolive have had more modest dividend increases in recent years. Evaluating the cash-based sources of intrinsic value helps one derive a fair value estimate range, as it helps rank dividend health and dividend growth, as shown in this group's respective Dividend Cushion ratios. All things considered, Kellogg, Colgate-Palmolive, and Clorox could be valuable additions to a diversified dividend growth portfolio.

May 5, 2021

Berkshire Hathaway Charging Higher
Image Shown: Shares of Berkshire Hathaway Inc Class B stock are on a nice upward climb year-to-date, and we include BRK.B as an idea in the Best Ideas Newsletter portfolio. We continue to be enormous fans of Mr. Buffett, Mr. Munger, and Berkshire Hathaway’s resilient business model and promising free cash flow growth outlook. On May 3, the first business day after Berkshire Hathaway reported its first quarter earnings, shares of BRK.A and BRK.B both moved higher during normal trading hours, a sign investors viewed the industrial conglomerate’s latest update quite favorably. We view Berkshire Hathaway as well-positioned to capitalize on the uneven but ongoing recovery in the US economy as COVID-19 vaccine distribution efforts are now in full swing (underpinning the domestic economy’s favorable outlook as quarantine measures and social distancing requirements are slowly eased across the country).

Apr 22, 2021

Coca-Cola Looks Ready to Break Out, Valuation Not Attractive Though
Image Shown: Coca-Cola’s technicals look like they are carving out a nice cup-and-handle pattern, but its valuation leaves a lot to be desired, in our view. Coca-Cola’s outlook for 2021 showcases strong comparable earnings per share growth and solid free cash flow generation. The soda maker’s valuation and Dividend Cushion ratio are held down by its large net debt position, but we fully expect it to make good on future dividend growth. From a technical standpoint, shares look like they might break out, but more value-focused investors might pause at its lofty valuation. We’re maintaining our fair value estimate range for now.