Valuentum Exclusive Analysis for the Discerning Investor

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Jun 18, 2024

Lennar Navigating Fluctuating Interest Rate Environment Well
Image: Lennar has been a strong performer since the beginning of 2023. We liked the quarterly update from Lennar, and while we won’t be adding this homebuilder to any newsletter portfolio, we’re interpreting its performance as another positive data point regarding the macroeconomic environment.

Mar 31, 2024

Toll Brothers Notes Strong Start to Spring Selling Season
Toll Brothers raised its full-year fiscal 2024 guidance across key metrics, and the company noted that it has seen a "marked increase in demand coinciding with the start of the spring selling season." Though we don’t include any homebuilder in the simulated newsletter portfolios, it’s good to see things are progressing well at Toll Brothers.

Mar 13, 2024

Williams-Sonoma Beats in Fourth Quarter, Raises Dividend 26%
Image: Williams-Sonoma is facing revenue pressure, but free cash flow trends are robust. Image Source: Williams-Sonoma. On March 13, Williams-Sonoma surprised the Street to the upside with better-than-expected fourth quarter results, a huge dividend increase, and the launch of an incremental $1 billion in share repurchases. We expect to raise our fair value estimate as a result of the good news. Though the firm’s sales continue to face pressure due to a weakened housing market, its cash-based sources of intrinsic value are robust, and shares yield 1.6% on a forward estimated basis.

Mar 8, 2024

Dividend Increases/Decreases for the Week of March 8
Let's take a look at firms raising/lowering their dividends this week.

Jan 23, 2022

RH’s Financials, Long-Term Potential Great But Housing Market and Deteriorating Wealth Effect Pose Risks
Image Shown: Shares of RH have exploded higher since the news broke that Berkshire Hathaway Inc had taken a stake in the firm’s equity back in 2019, though shares of RH have shifted lower in recent months. RH is an innovative home furnishing company that pairs its products with interior/exterior design services to offer a comprehensive package. The company primarily targets affluent households in the U.S., Canada, and the U.K. RH has tremendous pricing power and its margins have increased significantly in recent fiscal years, even during the COVID-19 pandemic, and its net revenues are trending higher as well. The firm is expanding into the high-end hospitality industry and has several projects that are set to come online in 2022 and beyond. RH is a stellar free cash flow generator with a manageable net debt load. Though the company has been executing nicely of late, as witnessed by its stellar financial performance and recent guidance increases, shares of RH have sold off in recent months. In our view, the recent selloff is a function of broad based market weakness, but it also may be due to investors growing more concerned about the impact higher interest rates and a deteriorating wealth effect may have on housing and home furnishing demand and on its push into the hospitality space, respectively. We continue to view RH’s long-term capital appreciation upside potential favorably, however.