Each week, Valens focuses on several companies that were analyzed in the prior week, where material distortions caused by as-reported GAAP accounting need to be corrected to understand a company’s economic fundamentals...
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August 23, 2019
Cirrus Logic, Inc. (CRUS:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 17.5x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, which may be unwarranted given management’s confidence about demand for their DACs and their Cipher acquisition, justifying outperformance going forward...
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August 23, 2019
This week the Valens Research team highlights our most interesting equity insight from across our tools and our analysis. Management’s smart strategic decisions, low market expectations, and sustained confidence about the business builds the case for equity upside...
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August 22, 2019
Highlighted Top: GME – GameStop Corp., LEN – Lennar Corporation, RAD – Rite Aid Corporation...
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August 22, 2019
Summary Headlines – Inside This Month
- Weak earnings growth and a recession are two different things, focus on the former. Recent signals around corporate investment growth and management concerns about cost pressures from trade and macro overhangs point to slower earnings growth going forward.
- Profits and profitability are growing at a slower rate, though profitability remains at all-time highs across US corporations (UAFRS-adjusted, accurate calculations)
- The combination of profitability and low-to-no credit risk suggests limited risk to US equities in 2019...
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August 21, 2019
Discovery, Inc. (DISC.A:USA) currently trades below historical averages relative to UAFRS-based (Uniform) Earnings with a 9.6x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, which may be unwarranted given management’s confidence about their international growth, market share, and advertising revenues...
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August 21, 2019
Each week, the Valens Research team highlights our most interesting insights from across our tools and our analysis, including individual company, industry, and macro insights. Top Highlight: UNFI – United Natural Foods, Inc. Other Highlights: ABT, CVS, NFLX Other Recent Analyses: AAPL, ABBV, CCK, DIS, FLS, GNTX, HCC, HRB, KSU, MDR, MGM, MTN, POOL, PVH, RMAX, SKX, SNX, UNH...
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August 20, 2019
– No Traded CDS, Base Case iCDS 620bps
– Negative Case iCDS 1183bps, 2024 10.625% Bond YTW of 21.100%, iYTW of 7.610%
– B- Rating from S&P, XO- (equivalent to BB+) Rating from Valens
– High Refinancing Need...
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August 20, 2019
Jabil Inc. (JBL:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 13.7x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is confident about their growth, EPS, and core income growth...
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August 19, 2019
United Natural Foods, Inc. (UNFI:USA) currently trades at historical lows relative to UAFRS-based (Uniform) Assets, with a 0.4x Uniform P/B. At these levels, the market has bearish expectations for the firm, but management is confident about their Thrive 2 initiative and long-term business transformation...
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