In today’s briefing:
- Ibotta IPO Valuation Analysis
- What the Baltimore Bride Collapse Means for Commodities
- Nordstrom Inc: Another Potential Takeover Attempt But What Is The Valuation Upside?
- Group 1 Automotive: Is The Favorable Shift Towards Hybrid Vehicles Truly Benefitting The Company?
- LCI Industries: Initiation Of Coverage – Is The RV Recovery & The Strength In The Aftermarket Sector Here To Stay? – Major Drivers
- Modine Manufacturing Company: Initiation Of Coverage – Will The Scott Springfield Acquisition Be A Game Changer? – Major Drivers
- Kohl’s Corporation: Initiation Of Coverage – Will It Make A Comeback After Its Failed Attempts To Explore A Potential Sale? – Major Drivers
- Leggett & Platt Incorporated: Initiation Of Coverage – These 4 Pivotal Factors Are Driving Its Future Performance! – Financial Forecasts
- LGI Homes: Initiation Of Coverage – What Is Its Geographic Expansion Strategy?
- MillerKnoll, Inc – 3QFY24 EPS Beats; Revenue Misses
Ibotta IPO Valuation Analysis
- In my insight, I discuss valuation framework for comparable company analysis and outline revenue growth scenario under my base case.
- Considering Ibotta achieved profitability in 2023 driven by strong growth in the segment of third-party publishers, I view EV/Revenue as the most appropriate methodology to value Ibotta.
- I have a positive view of the upcoming Ibotta IPO. The company’s efficient B2B2C business model, success-based marketing approach and scale provide Ibotta with a long runway of growth.
What the Baltimore Bride Collapse Means for Commodities
- Goldman also highlights that cyclical risks from the business cycle are fading.
- An upswing in the global industrial cycle typically leads to broad metals upside over the next 12 months the investment bank added.
- According to data from PIERS, a trade flow analytics tool within S&P Global, Baltimore port held just 4% share of the total trade volumes on the East Coast compared with other major regional ports like New York, with a nearly 38% share according to S&P Global.
Nordstrom Inc: Another Potential Takeover Attempt But What Is The Valuation Upside?
- This is our first report on Nordstrom, Inc., a company that has captured the market’s attention given the recent rumors of a takeover offer from the founding family.
- The company’s fourth quarter results delivered revenues of $4.3 billion and an earnings per share of $0.96, an improvement over the previous year.
- Importantly, 2023 results met or exceeded company guidance.
Group 1 Automotive: Is The Favorable Shift Towards Hybrid Vehicles Truly Benefitting The Company?
- Group 1 Automotive presented solid performance in the fourth quarter of 2023 through all lines of business, reaching a total revenue of $17.9 billion, marking the highest for the company and attaining a record of total gross profit exceeding $3 billion.
- Though the company reported $131.2 million in adjusted net income, it is clearly driven by the parts and service gross profit, which amounted to $1.2 billion.This is our first report on retail player, the Kohl’s Corporation.
- The company’s Fourth Quarter 2023 Earnings showed a mix of positives and negatives in terms of the company’s financial performance and future outlook.
LCI Industries: Initiation Of Coverage – Is The RV Recovery & The Strength In The Aftermarket Sector Here To Stay? – Major Drivers
- This is our first report on RV producer, Lippert (LCI Industries).
- In its Q4 2023 earnings, LCI Industries reported net revenue of $3.8 billion.
- This was a decline from the previous year’s revenue of $5.2 billion, mostly due to lower RV OEM and Marine industry production levels.
Modine Manufacturing Company: Initiation Of Coverage – Will The Scott Springfield Acquisition Be A Game Changer? – Major Drivers
- This is our first report on HVAC player, Modine Manufacturing Company.
- Its recent results showed that the company had another successful quarter, highlighted by strong margin expansion and earnings growth.
- This is attributed to the company’s continued focus on faster-growing and higher margin businesses that has greatly improved their earnings profile.
Kohl’s Corporation: Initiation Of Coverage – Will It Make A Comeback After Its Failed Attempts To Explore A Potential Sale? – Major Drivers
- This is our first report on retail player, the Kohl’s Corporation.
- The company’s Fourth Quarter 2023 Earnings showed a mix of positives and negatives in terms of the company’s financial performance and future outlook.
- Despite reporting a decrease of 1.1% in net sales and 4.3% in comparable sales for Q4, on the positive side, Kohl’s expressed optimism about its ability to realize growth through various strategic initiatives.
Leggett & Platt Incorporated: Initiation Of Coverage – These 4 Pivotal Factors Are Driving Its Future Performance! – Financial Forecasts
- This is our first report on bedding and other specialty products manufacturer, Leggett & Platt.
- The company has been facing some tough times but its management seems to remain optimistic amid challenging circumstances.
- While lower volumes in residential end markets and certain pricing responses have elicited predictions of lower earnings for 2024 from the company, other factors like the advancement of key product growth and improvement in profitability, accompanying a refocused bedding strategy are cause for increased optimism.
LGI Homes: Initiation Of Coverage – What Is Its Geographic Expansion Strategy?
- LGI Homes had a solid fourth quarter and met all of its operational and financial goals for the full year.
- Despite being faced with a few challenges, the company manages to outperform its initial expectations.
- Among the notable achievements included the delivery of 6,729 homes, which was on the high end of their original guidance and represented a 1.6% increase year-over-year.
MillerKnoll, Inc – 3QFY24 EPS Beats; Revenue Misses
As noted earlier, MillerKnoll’s 3QFY24 EPS beat expectations but revenue missed widely. 4QFY24 guidance was also below pre-report estimates.
With the misses, the stock gapped down by the mid-teens (~$5.00), closing at $24.76, thereby truncating and halting its recent rebound.
Y/Y revenue comparisons were negative in all three segments: Americas Contract (AC) at -9% to $441 million, International Contract & Specialty (IC&S) at -10.4% to $217 million, and Global Retail (GR) at -17% to $214 million.
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