Valuentum Exclusive Analysis for the Discerning Investor

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Jan 12, 2024

Dividend Increases/Decreases for the Week of January 12
Let's take a look at firms raising/lowering their dividends this week.

Dec 11, 2023

Oracle’s “Business Is Good and Getting Better”
Image Source: Peter Kaminski. On December 11, Oracle reported mixed second-quarter results for its fiscal 2024 that showed total revenue advancing 5% on a year-over-year basis (4% in constant currency), slightly lower than expectations, and non-GAAP earnings per share of $1.34 that came in slightly ahead of what the market was looking for. The company’s non-GAAP operating margin of 43% in the quarter helped to drive non-GAAP net income 14% higher than the same period a year ago (11% in constant currency). We’re not letting the slight miss on the top line sway us from our constructive stance on shares. Our fair value estimate stands at $108 per share, about in-line with where shares are currently trading.

Dec 10, 2023

First Gene-Editing Therapy Coming to Market; Reiterating Our Positive Stance on Vertex Pharma
Credit: Darryl Leja, NHGRI. On December 8, 2023, the U.S. Food and Drug Administration announced that it had approved Vertex Pharma’s and CRISPR Therapeutics’ novel gene-editing therapy (“Casgevy” – exa-cel) for sickle cell disease [SCD] in patients that are 12 years of age or older. This is the first such approval of its kind in U.S. history and will likely open the door for more gene-editing therapies for other rare diseases in the future. Estimates indicate that roughly 16,000 people will be eligible for the treatment at an estimated cost of around $2.2 million each, according to Reuters. The one-time market size of roughly $35.2 billion is a needle-mover, but the pace and timing of adoption of the therapy among the eligible population is difficult to estimate at this time. Note also that the therapy is of one-time application, meaning the therapy is a functional cure and will not be a source of recurring revenue from each patient. Nevertheless, it is an exciting development for medical science.

Nov 3, 2023

People Love Their Starbucks
Image: Starbucks remains a strong free cash flow generator. Operational efficiencies, sales leverage and pricing strength helped drive Starbucks' GAAP operating income growth of 42.7% and non-GAAP earnings per share to $1.06 in the quarter, up 31% on a year-over-year basis. Starbucks ended its fourth quarter of fiscal 2023 with ~$3.95 billion in cash and short-term investments and short- and long-term debt of ~$15.4 billion, resulting in a net debt position on the books. Free cash flow generation remains robust at Starbucks, however, with the measure coming in at ~$3.7 billion for the fiscal year ending October 1, 2023. We’re reiterating the high end of our fair value estimate range of $120 for Starbucks’ shares.

Oct 25, 2023

Visa’s High Margin Business Reveals Consumer Spending Remains Resilient
Image: Visa has been a strong performer thus far in 2023. On October 24, Best Ideas Newsletter portfolio holding Visa reported excellent fourth-quarter results for its fiscal 2023. Net revenues advanced 11% on a year-over-year basis, while non-GAAP net income and non-GAAP earnings per share leapt 18% and 21% year-over-year, respectively, in the period. For the fiscal year, Visa generated an impressive 64.4% operating margin. Payments volume increased 9% and cross-border volume advanced 16%, showcasing that the consumer remains very healthy thanks in part to low unemployment rates, despite concerns over higher mortgage costs, student loan repayments, and general economic uncertainty as savings accrued during the COVID-19 pandemic wane. We continue to be big fans of Visa as our top payments-related idea.

Oct 15, 2021

LVMH Posts Record Sales Performance
Image Source: LVMH Moët Hennessy Louis Vuitton - October 2021 IR Presentation. The France-based luxury goods company LVMH Moët Hennessy Louis Vuitton provided an update on its sales performance during the first three quarters of 2021 on October 12. LVMH’s revenues grew by 46% year-over-year, reaching EUR44.2 billion (a record for the company), and organic sales were up 40% year-over-year during the first nine months of 2021. The company’s ‘Fashion & Leather Goods’ segment, responsible for a little under half of its total sales, saw its revenue surge higher during this period led by fashion powerhouses Louis Vuitton and Christian Dior Couture. Strength in the US and Asian luxury goods markets bolstered LVMH’s financial performance this year. Let's take a deeper look to get a read on how the luxury space has been performing after the worst of the pandemic.

Jun 4, 2021

Dividend Increases/Decreases for the Week June 4
Let's take a look at companies that raised/lowered their dividend this week.

May 7, 2021

Dividend Increases/Decreases for the Week May 7
Let's take a look at companies that raised/lowered their dividend this week.

Apr 2, 2021

Dividend Increases/Decreases for the Week April 2
Let's take a look at companies that raised/lowered their dividend this week.

Mar 5, 2021

Dividend Increases/Decreases for the Week March 5
Let's take a look at companies that raised/lowered their dividend this week.