Valuentum Exclusive Analysis for the Discerning Investor

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Apr 30, 2025

Enterprise Products Partners DCF Coverage of Its Distribution Remains Solid
Image: Enterprise Products Partners' units have done well of late. In the first quarter of 2025, Enterprise Products Partners repurchased $60 million of its common units, with the partnership having utilized about 60% of its authorized $2 billion buyback program. Adjusted cash flow from operations was $2.1 billion for both the first quarter of 2025 and 2024. Total capital expenditures were $1.1 billion in the first quarter of 2025, consisting of $960 million in growth capital and $102 million in sustaining capital expenditures. Total debt outstanding was $31.9 billion, and Enterprise had total liquidity of $3.6 billion. We continue to like Enterprise’s DCF coverage of the distribution, and the company remains an idea in the High Yield Dividend Newsletter portfolio

Mar 3, 2025

Enterprise Products Partners Remains a Key Idea
Image: Enterprise Products Partners units have fared well since the beginning of 2023. Enterprise generated ~$2.4 billion in net cash provided by operating activities in the fourth quarter, while capital investments were ~$2 billion, resulting in non-GAAP free cash flow of $393 million. For 2025, organic growth capital investments are expected in the range of $4-$4.5 billion, while sustaining capital expenditures are expected to be $525 million. At the end of 2024, Enterprise had total debt principal outstanding of $32.2 billion and consolidated liquidity of roughly $4.8 billion. We continue to like Enterprise as an idea in the High Yield Dividend Newsletter portfolio.

Jan 31, 2025

Dividend Increases/Decreases for the Week of January 31
Let's take a look at firms raising/lowering their dividends this week.

Feb 2, 2024

Dividend Increases/Decreases for the Week of February 2
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.

Oct 26, 2023

Brief Take: Altria’s 10% Dividend Yield Is Too Hard to Pass Up
Altria Group’s forward estimated 10% dividend yield is too hard to pass up as it is comfortably covered by traditional free cash flow. The tobacco giant reported third-quarter 2023 results on October 26 that showcased how its asset-light business model continues to throw off tons of cash. Traditional free cash flow generation came in at ~$5.9 billion during the first nine months of 2023, while cash dividends paid came in at ~$5 billion, resulting in a very nice free cash flow cushion on a ~10%-yielding stock. Though revenue growth at Altria remains under pressure, gross profit continues to move in the right direction. Altria has raised its dividend 58 times during the past 54 years, and the firm continues to target mid-single-digit dividend growth annually. For income investors that aren’t worried about ESG-related criteria, Altria could make for a great diversifier in a high-yield dividend income portfolio. Our fair value estimate stands north of $60 per share (shares are trading under $40 at the time of this writing).

Feb 10, 2023

Dividend Increases/Decreases for the Week of February 10
Let's take a look at firms raising/lowering their dividends this week.

Dec 20, 2022

Stock Market Locked in Technical Downtrend; Millionaires Expect More Pain in 2023
Image: The stock market has been locked in a downtrend through all of 2022, and the latest bull trap has spoiled the Santa Claus rally. 2023 may be an equally rough year. This market just doesn’t want to go higher in the near term, and the latest bull trap wasn’t encouraging at all. We think long term investors should stay the course, but it is looking more and more like we won’t see a stock market bottom until sometime in 2023. Santa brought coal this year.

Jan 28, 2022

Dividend Increases/Decreases for the Week January 28
Let's take a look at companies that raised/lowered their dividend this week.