Daily Brief Equity Bottom-Up: Lululemon 3Q’24 Update and more

• While the overall market continues to hit All-time High almost every other day, Lulu has been battling the skeptics for much of this year.
• There is still a long way to go, but with the stock now up almost 50% over the last three months, Mr. Market has likely started acknowledging that the bear narratives perhaps went a bit too far.
• Glancing through the numbers for 3Q’24 may seem eerily similar to 2Q’24, but management’s tone was much more upbeat in tonight.

• JB Financial is a Korean regional bank involved in traditional banking services such as mortgage loans, auto loans, and asset management
• The bank has a stable performance with a 10-12% return on common equity and a strong 12.5% CET1 ratio, but trades at a low valuation of .56xTBV and 4-5x earnings
• Activist fund Align Partners has influenced JB’s capital allocation decisions, advocating for buybacks and higher capital returns, while the bank offers a significant 6.6% dividend that has been growing at a double-digit rate

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Company is marginally profitable and owns a portfolio of securities (mostly public stocks) and rental real estate worth ~3x its market cap (~¥18,000 /share vs ¥6,000 stock price).

• These figures assign zero value to the operating business and its fixed assets.

• Activist investor is the #1 shareholder with a 17.4%. #2 shareholder owns 11% and will likely align with activist. Insiders don’t own enough to easily block future activism.

• Marvell Technology Inc. reported its third quarter of fiscal year 2025 earnings, indicating a mix of positive growth and strategic shifts.
• The company’s revenues reached $1.516 billion, exceeding guidance by $66 million and showing a 19% sequential increase, driven by heightened demand in the AI sector and strong execution.
• On a year-over-year basis, revenue grew by 7%, marking a return to growth, with data center applications, notably in AI, accounting for 73% of total revenues.

• Descartes Systems Group reported solid third-quarter financial performance, showcasing significant growth in revenue and adjusted EBITDA, while expanding its portfolio through strategic acquisitions.
• The company registered a 17% increase in total revenues compared to the same period last year, driven by a combination of organic growth and successful incorporation of newly acquired businesses.
• Organic revenue growth stood at approximately 10%, reinforcing the company’s ability to enhance its offering within existing operations.

• Dollar Tree’s third-quarter fiscal 2024 results reflect both advancements and challenges as it navigates a changing retail landscape and continues its strategic transformation.
• The company reported consolidated net sales of $7.6 billion, marking a 3.5% year-on-year increase.
• This was largely driven by stronger performances in their Dollar Tree and Family Dollar segments, both of which experienced improved sequential comparable sales.

• Bumble, the parent company of the popular dating app, recently released its third-quarter earnings for 2024.
• The results reflect a mixed quarter where Bumble managed to meet its revenue expectations but still operates within the challenges of an evolving business.
• On the positive side, Bumble achieved total revenue of $274 million, which, while representing a slight 1% decline, fell within the provided outlook range.

• Core & Main, a leader in the water infrastructure sector, reported strong fiscal 2024 third-quarter results, demonstrating both growth and resilience amidst challenging conditions.
• The company achieved record quarterly sales exceeding $2 billion and adjusted EBITDA of $277 million, driven by a combination of organic growth and strategic acquisitions.
• Sales grew by nearly 12%, reflecting both the company’s expansion efforts and robust demand across its core markets.

• Hormel Foods Corporation recently held its fourth quarter earnings call, delivering a mix of positive developments and some areas of concern.
• The company’s financial performance in fiscal 2024 reflected its strategic shift and operational initiatives, which helped manage a challenging macroeconomic environment and exhibited the resilience of its portfolio and team.
• From a positive perspective, Hormel Foods reported a year of solid execution of its strategic initiatives, which included introducing innovative products across its portfolio, expanding its market presence, and reinvesting in its well-established brands like Hormel Black Label, Jennie-O, SPAM, and Applegate.

• Five Below recently announced its third quarter results for fiscal year 2024, reflecting a blend of positive strides and ongoing challenges.
• The company reported a 15% increase in sales, reaching $844 million, slightly surpassing its guidance with a comparable sales growth of 0.6%.
• Adjusted earnings per share stood at $0.42, an improvement over the previous year.