Analysis

The Latest from Equities News


November 1, 2019
SJM – Market expectations are for Uniform ROA compression, but management is confident about their positioning, brand strength, and performance

The J. M. Smucker Company (SJM:USA) currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with a 16.8x Uniform P/E. At these levels, the market is pricing in bearish

October 31, 2019
Valens Research – UAFRS vs As Reported Weekly Highlights – October 31, 2019

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.

Company Specific Highlights & Insights

October 30, 2019
GNRC – Markets are pricing in expectations for Uniform ROA to contract, but management is confident about their sales drivers and international business

Generac Holdings Inc. (GNRC:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings with a 19.6x Uniform P/E, implying bearish expectations for the firm

October 29, 2019
PANW – Market expectations are for declining Uniform ROA, but management is confident about demand, growth, and their competitive moat

Palo Alto Networks, Inc. (PANW:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) Earnings, with a 35.4x Uniform P/E. However, even at these levels, the market has

October 29, 2019
Valens Equity Weekly Insights and Inflections for October 29, 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: AXL – American Axle & Manufacturing Holdings, Inc.  Corporation Other Highlights: LCII, PINC, WBT

October 28, 2019
SUM – Market expectations are for significant declines in Uniform ROA, but management is confident about operating margins, acquisitions, and market conditions

Summit Materials, Inc. (SUM:USA) currently trades above recent averages relative to UAFRS-based (Uniform) Earnings with a 24.1x Uniform P/E, implying bullish expectations for the firm. However, management may be concerned about

October 25, 2019
AXL – Market expectations are for fading Uniform ROA, but management is confident about their margins, sales, and costs

American Axle & Manufacturing Holdings, Inc. (AXL:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 11.9x Uniform P/E, implying bearish expectations for the firm

October 25, 2019
Valens Research Weekly Equity Idea Highlight for October 25, 2019 – Winnebago Industries, Inc.

This week the Valens Research team highlights our most interesting equity insight from across our tools and our analysis. WGO likely to drive strong returns, as current low market expectations do not recognize age-wave, company strategy factors, strong management alignment...

October 24, 2019
PINC – Management is confident about their capital allocation, revenue, and guidance, which coupled with overly bearish market expectations, suggests that upside remains warranted

Premier, Inc. (PINC:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 9.1x Uniform P/E. At these levels, the market is pricing in expectations for the firm to see historically low profitability, but

October 24, 2019
Valens Research – UAFRS vs As Reported Weekly Highlights – October 24, 2019

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.

Company Specific Highlights & Insights

October 23, 2019
LCII – Market expectations are for significant declines in Uniform ROA, but management is confident about operating margins, acquisitions, and market conditions

LCI Industries (LCII:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 15.4x Uniform P/E. At these levels, the market has bearish expectations for the firm

October 22, 2019
WBT – Markets have expectations for Uniform ROA to fall significantly, but management is confident about net income, material costs, and their Crem business

Welbilt, Inc. (WBT:USA) currently trades slightly below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 19.3x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is confident about net income, material costs, and their Crem business

October 22, 2019
Valens Equity Weekly Insights and Inflections for October 22, 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: EXLS – ExlService Holdings Corporation Other Highlights: G, LPLA, VG

October 21, 2019
EXLS – Markets have expectations for Uniform ROA to fall significantly, but management is confident about their acquisitions, EBTIDA, and Analytics business

ExlService Holdings, Inc. (EXLS:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) Earnings, with a 21.2x Uniform P/E. At these levels, the market has bearish expectations for the firm

October 18, 2019
VG – Market expectations are for Uniform ROA decline, but management is confident about growth, cloud adoption, and product offerings

Vonage Holdings Corp. (VG:USA) currently trades above recent averages relative to UAFRS-based (Uniform) Earnings, with a 29.0x Uniform P/E. However, even at these levels, the market has bearish expectations for the firm

October 17, 2019
LPLA – Market expectations are for Uniform ROA to decline, but management is confident about operating leverage, growth, and their pipeline

LPL Financial Holdings Inc. (LPLA:USA) currently trades near historical lows relative to UAFRS-based (Uniform) Earnings, with a 14.3x Uniform P/E

October 17, 2019
Valens Research – UAFRS vs As Reported Weekly Highlights – October 17, 2019

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.

Company Specific Highlights & Insights

October 16, 2019
G – Market expectations are for slight compression in Uniform ROA, but management is confident about margins, revenues, and their market size

Genpact Limited (G:USA) currently trades near corporate averages relative to Uniform Earnings, with a 20.9x Uniform P/E. At these levels, the market has bearish expectations for the firm

October 15, 2019
LEA – Market expectations are for Uniform ROA to reach 10-year lows, but management is confident about costs, growth, and their manufacturing capabilities

Lear Corporation (LEA:USA) currently trades below corporate averages relative to Uniform Earnings, with a 10.1x Uniform P/E, implying bearish expectations for the firm

October 15, 2019
Valens Equity Weekly Insights and Inflections for October 15, 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: TECD – Tech Data Corporation Other Highlights: BLK, CHRW, SYK