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Recent Articles
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Domino’s Remains a Key Idea in the Best Ideas Newsletter Portfolio
Feb 25, 2025
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Image: Domino’s shares have advanced nicely since the beginning of 2023.
For fiscal 2024, net cash provided by operating activities increased 5.8% on a year-over-year basis, while capital expenditures expanded 7.1%, resulting in free cash flow growth of 5.5%, to $512 million. The company experienced global net store growth of 775 for fiscal 2024, and we continue to like Domino’s future growth prospects. During the fourth quarter, the company repurchased a total of $112 million in stock, and as of December 29, had total remaining buyback authorization of $814.3 million. We like Domino’s long-term picture and include the firm as a holding in the Best Ideas Newsletter portfolio.
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Energy Transfer Now Covers Distributions with Free Cash Flow
Feb 22, 2025
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Image Source: Energy Transfer.
Energy Transfer announced a quarterly cash distribution of $0.3250 per common unit during the fourth quarter (3.2% higher than the fourth quarter of 2023), a distribution that was well-covered by distributable cash flow in the period. At the end of the quarter, Energy Transfer had $2.21 billion of available borrowing capacity. For 2024, Energy Transfer hauled in $11.5 billion in cash from operating activities and spent $4.2 billion in capital expenditures, resulting in free cash flow of $7.3 billion, in excess of the $6.4 billion it distributed to partners, noncontrolling interests, and redeemable noncontrolling interests. We like Energy Transfer’s newfound free cash flow coverage of the payout.
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Booking Holdings' Revenue Accelerates in Fourth Quarter
Feb 21, 2025
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Image Source: Booking Holdings.
Booking Holdings is doing a great job returning cash to shareholders. The company declared a quarterly cash dividend of $9.60 per share, a 10% increase from its quarterly cash dividend of $8.75 per share in 2024. The company repurchased $1.1 billion of stock during the fourth quarter of 2024, and the firm has remaining buyback authorization of $7.7 billion. For the full year 2024, free cash flow was $7.9 billion, roughly 33.3% of sales. Cash and long-term investments were $16.7 billion at the end of the year, about in line with short- and long-term debt of $16.6 billion. We liked Booking Holdings’ accelerated performance in the fourth quarter of 2024 and remain huge fans of its free cash flow generating prowess.
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Walmart’s Earnings Outlook Falls Short of Expectations
Feb 21, 2025
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Image Source: Walmart.
Walmart ended its fiscal year with cash and cash equivalents of $9.0 billion and total debt of $45.8 billion. Operating cash flow for fiscal 2025 was $36.4 billion, an increase of $0.7 billion from last year, while free cash flow remained robust at $12.7 billion. Looking to the first quarter of fiscal 2026, net sales are expected to increase 3%-4%, while adjusted operating income is expected to advance 0.5%-2%, with adjusted earnings per share targeted in the range of $0.57-$0.58, below the $0.65 consensus estimate. For all of fiscal 2026, net sales are anticipated to increase 3%-4%, with adjusted operating income expected to increase 3.5%-5.5%. Adjusted earnings per share is targeted in the range of $2.50-$2.60 for the full year (consensus was at $2.76), inclusive of a $0.05 headwind from currency. Shares yield 0.9%.
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