| Ashtead Group PLC (GB0000536739) | |||
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| 29.05.25 23:07:23 | David Herro's Strategic Moves: BNP Paribas Reduced by 1.5% |  |
| Insights from the First Quarter of 2025 N-PORT Filing David Herro (Trades, Portfolio) recently submitted the N-PORT filing for the first quarter of 2025, providing insights into his investment moves during this period. David Herro (Trades, Portfolio) has been a manager of the Oakmark International Fund (OAKIX) since 1992, the Oakmark International Small Cap Fund (OAKEX) since 1995, and the Oakmark Global Select Fund (OAKWX) since 2006. He is also the Chief Investment Officer for International Equities at Harris Associates, which he joined in 1992. His career honors include being named Morningstar's International Stock Fund Manager of the Year in 2006 and International Stock Fund Manager of the Decade for 2000-09. Mr. Herro has an M.A. in Economics from the University of Wisconsin-Milwaukee (1985) and a B.S. in Business/Economics from the University of Wisconsin-Platteville (1983). His investment philosophy focuses on buying businesses trading at a significant discount to intrinsic value, investing in companies expected to grow shareholder value, and partnering with management teams that act as owners. Warning! GuruFocus has detected 6 Warning Sign with XPAR:BNP.David Herro's Strategic Moves: BNP Paribas Reduced by 1.5% Summary of New Buy David Herro (Trades, Portfolio) added a total of 5 stocks, among them: The most significant addition was Flutter Entertainment PLC (NYSE:FLUT), with 390,700 shares, accounting for 0.67% of the portfolio and a total value of $86,559,590 million. The second largest addition to the portfolio was Asahi Group Holdings Ltd (TSE:2502), consisting of 3,475,700 shares, representing approximately 0.35% of the portfolio, with a total value of ?44,407,520. The third largest addition was Lvmh Moet Hennessy Louis Vuitton SE (XPAR:MC), with 23,600 shares, accounting for 0.11% of the portfolio and a total value of 14,614,960. Key Position Increases David Herro (Trades, Portfolio) also increased stakes in a total of 11 stocks, among them: The most notable increase was KB Financial Group Inc (XKRX:105560), with an additional 2,751,300 shares, bringing the total to 3,153,700 shares. This adjustment represents a significant 683.72% increase in share count, a 1.16% impact on the current portfolio, with a total value of ?170,942,240. The second largest increase was Ashtead Group PLC (LSE:AHT), with an additional 2,377,787 shares, bringing the total to 3,803,900. This adjustment represents a significant 166.73% increase in share count, with a total value of 205,664,490. Summary of Sold Out David Herro (Trades, Portfolio) completely exited 4 holdings in the first quarter of 2025, as detailed below: Story Continues Liberty Global Ltd (NASDAQ:LBTYA): David Herro (Trades, Portfolio) sold all 5,227,791 shares, resulting in a -0.45% impact on the portfolio. Bunzl PLC (LSE:BNZL): David Herro (Trades, Portfolio) liquidated all 411,500 shares, causing a -0.11% impact on the portfolio. Key Position Reduces David Herro (Trades, Portfolio) also reduced positions in 53 stocks. The most significant changes include: Reduced BNP Paribas (XPAR:BNP) by 3,657,884 shares, resulting in a -38.33% decrease in shares and a -1.5% impact on the portfolio. The stock traded at an average price of 69.43 during the quarter and has returned 11.85% over the past 3 months and 37.62% year-to-date. Reduced CNH Industrial NV (NYSE:CNH) by 14,278,300 shares, resulting in a -31.24% reduction in shares and a -1.08% impact on the portfolio. The stock traded at an average price of $12.54 during the quarter and has returned 0.05% over the past 3 months and 13.74% year-to-date. Portfolio Overview At the first quarter of 2025, David Herro (Trades, Portfolio)'s portfolio included 70 stocks. The top holdings included 3.83% in BNP Paribas (XPAR:BNP), 3.67% in Bayer AG (XTER:BAYN), 3.17% in Kering SA (XPAR:KER), 3.01% in CNH Industrial NV (NYSE:CNH), and 2.98% in Continental AG (XTER:CON).David Herro's Strategic Moves: BNP Paribas Reduced by 1.5% The holdings are mainly concentrated in 9 of the 11 industries: Industrials, Financial Services, Consumer Cyclical, Healthcare, Consumer Defensive, Technology, Basic Materials, Communication Services, and Real Estate. This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein. This article first appeared on GuruFocus. View Comments |
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| 16.04.25 09:05:00 | Zacks Industry Outlook W.W. Grainger, Ashtead, Andritz and ClearSign | |
| For Immediate Release Chicago, IL – April 16, 2025 – Today, Zacks Equity Research Equity areW.W. Grainger, Inc. GWW, Ashtead Group ASHTY, Andritz ADRZY and ClearSign Technologies CLIR. Industry: Industrial Services Link: https://www.zacks.com/commentary/2449273/4-industrial-services-stocks-to-watch-amid-industry-challenges The Zacks Industrial Services industry’s near-term outlook has been clouded by a weak manufacturing sector as customers remain wary of the effects of tariffs. Increased input costs and the implementation of tariffs are expected to erode industry margins. Despite the current setback, the rise in e-commerce activities will be a key catalyst for the industry. Companies like W.W. Grainger, Inc. , Ashtead Group, Andritz and ClearSign Technologies are positioned for growth by leveraging strategies to capitalize on this demand. They have also been lowering costs, increasing productivity and efficiency, and investing in automation and digitization, which will aid growth. Industry Description The Zacks Industrial Services industry comprises companies that provide industrial equipment products and MRO (maintenance, repair and operations) services. It includes routine maintenance, emergency maintenance and spare part inventory control, which keep a facility and its equipment in good operating condition. Industry participants serve a wide array of customers, ranging from commercial, government and healthcare to manufacturing. The industry's products (power tools, hand tools, cutting fluids, lubricants, personal protective equipment and consumables) are utilized in production and plant maintenance but are not directly related to customers’ core products or services. These companies reduce MRO supply-chain costs and improve customers' plant floor productivity by offering inventory management and process and procurement solutions. Trends Shaping the Future of the Industrial Services Industry Manufacturing Activity Contracts, Highlighting Industry Struggles: The manufacturing sector contributes around 70% to the industry's revenues. The Institute for Supply Management’s manufacturing index had been in contraction for 26 consecutive months until December 2024. The index expanded in January and February with readings of 50.9% and 50.3%, respectively. But this recovery was short-lived, with the index slipping into contraction again in March with a reading of 49%. Over the past 12 months, the index has averaged 48.5%. The New Orders Index contracted in February and March after three consecutive months of expansion. The Index was 45.2% in March, the lowest reading since May 2023 (when it was 43.4%). The index has not delivered consistent growth since the end of its 24-month expansion streak in May 2022. After two consecutive months of expansion, the Production Index moved into contraction territory in March, registering 48.3%. Customers are pulling in orders due to anxiety about continued tariffs and pricing pressures. Story Continues High Costs and Impact of Tariffs are Concerning: The industry has been experiencing significant inflation levels, including higher prices for labor, freight and fuel. The companies are witnessing labor shortages for some positions and incurring steep labor costs to meet demand. Industry players are focusing on pricing actions, cost-cutting measures, efforts to improve productivity and efficiency and the diversification of the supplier base to mitigate some of these headwinds. The imposition of tariffs and retaliatory tariffs will also heighten costs for the industry. E-commerce to Be a Growth Driver: MRO demand is significantly impacted by the evolution of e-commerce. Customer demand for highly tailored solutions, with real-time access to information and rapid delivery of products, is rising. Customers want to execute their business activities in the most efficient way possible, which often means online. According to Statista, global e-commerce revenues are expected to reach $4.3 trillion in 2025 and see a compound annual growth rate (CAGR) of 8% between 2025 and 2029. Turkey is expected to lead, followed by Brazil and India. By 2026, the U.S online retail market is forecast to surpass the $1.5 trillion mark. To capitalize on this trend, industrial service companies are heavily investing in improving their digital capabilities and increasing their e-commerce share. Zacks Industry Rank Indicates Dull Prospects The group’s Zacks Industry Rank, basically the average of the Zacks Rank of all the member stocks, indicates bearish prospects in the near term. The Zacks Industrial Services Industry, a 19-stock group within the broader Zacks Industrial Products sector, currently carries a Zacks Industry Rank #191, which places it in the bottom 22% of 246 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1. Before we present a few Industrial services stocks that investors can add to their portfolio, it is worth taking a look at the industry’s stock-market performance and its valuation picture. Industry vs S&P 500 & Sector The Industrial Services industry has underperformed its sector and the Zacks S&P 500 composite over the past year. Over this period, the industry has declined 14.8% compared with the sector’s fall of 11.8%. The Zacks S&P 500 composite has moved up 7.6%. Industry's Current Valuation On the basis of the forward 12-month EV/EBITDA ratio, a commonly used multiple for valuing Industrial Services companies, we see that the industry is currently trading at 26.15X compared with the S&P 500’s 12.88X and the Industrial Products sector’s forward 12-month EV/EBITDA of 19.27X. Over the last five years, the industry traded as high as 35.06X and as low as 7.44X, the median being 19.92X. Four Industrial Services Stocks to Keep an Eye On Andritz: The company reported strong order intake of €2.53 billion ($2.87 billion), up 24% year over year, led by Hydropower, Pulp & Paper and Metals. For 2025, the ANDRITZ Group sees project activity picking up across markets and broadly stable development in revenues and operational profitability. Supported by a solid backlog and continued growth in demand for service and green technologies, revenues are projected to be between €8 billion and €8.3 billion ($9.07-$9.41 billion). Aided by its ongoing measures to increase competitiveness and improvements in revenue mix driven by growing service business, the comparable EBITA margin is expected at 8.6-9.0%. ANDRITZ recently inked a deal to acquire Italian company A.Celli Paper to strengthen its position in the tissue and paper industry. The company has made 82 acquisitions since 2002. Its merger and acquisition strategy is focused on complementary business and technologies , while emphasizing on Service, Digitalization & Decarbonization. Headquartered in Graz, Austria, Andritz offers a broad portfolio of innovative plants, equipment, systems, services and digital solutions for different industries and end markets. The Zacks Consensus Estimate for ADRZY’s fiscal 2025 earnings has moved up 7% over the past 60 days. The estimate indicates year-over-year growth of 7.3%. The company's shares have gained 13.5% in the past three months. ADRZY currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Ashtead Group: The company delivered record rental revenue growth and EBITDA in the nine months ended Jan. 31, 2025, an increase of 5% and a 3% respectively. During this period, it invested $2.1 billion in capital across existing locations and greenfields, and $56 million on three bolt-on acquisitions, adding 54 new locations in North America. ASHTY is well-poised to deliver strong results, aided by its diverse end markets and products, lower debt levels and efforts to strengthen its market position. Initiatives to optimize the cash flow and reduce capital expenditure and operating costs are likely to contribute to growth. It continues to invest in a digital transformation program that will enhance customer experience. The company has a strong pipeline of strategic acquisition opportunities to supplement its organic growth plan. A good quality fleet and a strong financial position bode well. The Zacks Consensus Estimate for fiscal 2025 earnings for this London, U.K.-based company, which engages in the construction, industrial and general equipment rental business, has been revised upward by 0.1% in the past 60 days. The consensus estimate indicates year-over-year growth of 0.8%. The company has a long-term estimated earnings growth rate of 7%. The company's shares have declined 19.4% in the past three months. ASHTY currently carries a Zacks Rank #3 (Hold). ClearSign Technologies: The company reported record revenues of $3.6 million in 2024, resulting from both process burner and boiler burner orders. It recently expanded its partnership with Zeeco, Inc. to launch a co-branded process burner line called the Zeeco CS5 and Zeeco hydrogen CS5 Burners. This collaborative effort by ClearSign Technologies and Zeeco is expected to significantly reduce industrial emissions. The company remains focused on enhancing and innovating product offerings to expand scope and grow the total serviceable market, with an additional focus on diversifying the value of its products. Some of these innovations include the hydrogen burner, the M-Series burners, advanced flares and thermal oxidizers and improvements to ClearSign Eye sensor. The company recently announced it has received a purchase order for one of its new “M” series process burners, the ClearSign Core M1, from Devco Process. It has received a positive response to this technology, including multiple requests for quotations in addition to this order. The Zacks Consensus Estimate for Tulsa, OK-based ClearSign Technologies’ earnings for fiscal 2025 has been unchanged over the past 30 days. The estimate currently indicates year-over-year growth of 109%. CLIR has a trailing four-quarter earnings surprise of 11.11%, on average. The company's shares have declined 51.9% in the past three months. The company currently carries a Zacks Rank of 3. Grainger: The company continues to deliver robust results, aided by margin improvements in its segments and strong operating performance. GWW is well-poised to gain from efforts to increase its customer base through incremental marketing investments and effective marketing strategies. The High Touch Solutions North America segment will continue to benefit from pricing actions and volume growth. The Endless Assortment segment is gaining from customer acquisitions at its Zoro and MonotaRO businesses. Cost-control measures undertaken by GWW will sustain margins. The company is also focused on improving the end-to-end customer experience by investing in its e-commerce and digital capabilities and executing improvement initiatives within its supply chain. The Zacks Consensus Estimate for fiscal 2025 earnings for the Lake Forest, IL-based company indicates year-over-year growth of 3.3%. GWW currently has a trailing four-quarter earnings surprise of 0.20%, on average. It has an estimated long-term earnings growth rate of 9.4% and a Zacks Rank of 3 at present. The company's shares have declined 9.7% in the past three months. Why Haven't You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@zacks.com https://www.zacks.com Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report W.W. Grainger, Inc. (GWW) : Free Stock Analysis Report Ashtead Group PLC (ASHTY) : Free Stock Analysis Report ClearSign Technologies Corporation (CLIR) : Free Stock Analysis Report Andritz (ADRZY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments |
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| 15.04.25 16:11:00 | 4 Industrial Services Stocks to Watch Amid Industry Challenges | |
| The Zacks Industrial Services industry’s near-term outlook has been clouded by a weak manufacturing sector as customers remain wary of the effects of tariffs. Increased input costs and the implementation of tariffs are expected to erode industry margins. Despite the current setback, the rise in e-commerce activities will be a key catalyst for the industry. Companies like W.W. Grainger, Inc. GWW, Ashtead Group ASHTY, Andritz ADRZY and ClearSign Technologies CLIR are positioned for growth by leveraging strategies to capitalize on this demand. They have also been lowering costs, increasing productivity and efficiency, and investing in automation and digitization, which will aid growth. Industry Description The Zacks Industrial Services industry comprises companies that provide industrial equipment products and MRO (maintenance, repair and operations) services. It includes routine maintenance, emergency maintenance and spare part inventory control, which keep a facility and its equipment in good operating condition. Industry participants serve a wide array of customers, ranging from commercial, government and healthcare to manufacturing. The industry's products (power tools, hand tools, cutting fluids, lubricants, personal protective equipment and consumables) are utilized in production and plant maintenance but are not directly related to customers’ core products or services. These companies reduce MRO supply-chain costs and improve customers' plant floor productivity by offering inventory management and process and procurement solutions. Trends Shaping the Future of the Industrial Services Industry Manufacturing Activity Contracts, Highlighting Industry Struggles: The manufacturing sector contributes around 70% to the industry's revenues. The Institute for Supply Management’s manufacturing index had been in contraction for 26 consecutive months until December 2024. The index expanded in January and February with readings of 50.9% and 50.3%, respectively. But this recovery was short-lived, with the index slipping into contraction again in March with a reading of 49%. Over the past 12 months, the index has averaged 48.5%. The New Orders Index contracted in February and March after three consecutive months of expansion. The Index was 45.2% in March, the lowest reading since May 2023 (when it was 43.4%). The index has not delivered consistent growth since the end of its 24-month expansion streak in May 2022. After two consecutive months of expansion, the Production Index moved into contraction territory in March, registering 48.3%. Customers are pulling in orders due to anxiety about continued tariffs and pricing pressures. Story Continues High Costs and Impact of Tariffs are Concerning: The industry has been experiencing significant inflation levels, including higher prices for labor, freight and fuel. The companies are witnessing labor shortages for some positions and incurring steep labor costs to meet demand. Industry players are focusing on pricing actions, cost-cutting measures, efforts to improve productivity and efficiency and the diversification of the supplier base to mitigate some of these headwinds. The imposition of tariffs and retaliatory tariffs will also heighten costs for the industry. E-commerce to be a Growth Driver: MRO demand is significantly impacted by the evolution of e-commerce. Customer demand for highly tailored solutions, with real-time access to information and rapid delivery of products, is rising. Customers want to execute their business activities in the most efficient way possible, which often means online. According to Statista, global e-commerce revenues are expected to reach $4.3 trillion in 2025 and see a compound annual growth rate (CAGR) of 8% between 2025 and 2029. Turkey is expected to lead, followed by Brazil and India. By 2026, the U.S online retail market is forecast to surpass the $1.5 trillion mark. To capitalize on this trend, industrial service companies are heavily investing in improving their digital capabilities and increasing their e-commerce share. Zacks Industry Rank Indicates Dull Prospects The group’s Zacks Industry Rank, basically the average of the Zacks Rank of all the member stocks, indicates bearish prospects in the near term. The Zacks Industrial Services Industry, a 19-stock group within the broader Zacks Industrial Products sector, currently carries a Zacks Industry Rank #191, which places it in the bottom 22% of 246 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1. Before we present a few Industrial services stocks that investors can add to their portfolio, it is worth taking a look at the industry’s stock-market performance and its valuation picture. Industry Vs S&P 500 & Sector The Industrial Services industry has underperformed its sector and the Zacks S&P 500 composite over the past year. Over this period, the industry has declined 14.8% compared with the sector’s fall of 11.8%. The Zacks S&P 500 composite has moved up 7.6%. One-Year Price Performance Industry's Current Valuation On the basis of the forward 12-month EV/EBITDA ratio, a commonly used multiple for valuing Industrial Services companies, we see that the industry is currently trading at 26.15X compared with the S&P 500’s 12.88X and the Industrial Products sector’s forward 12-month EV/EBITDA of 19.27X. This is shown in the charts below. Enterprise Value/EBITDA (EV/EBITDA) F12M Ratio Enterprise Value/EBITDA (EV/EBITDA) F12M Ratio Over the last five years, the industry traded as high as 35.06X and as low as 7.44X, the median being 19.92X. Four Industrial Services Stocks to Keep an Eye on Andritz: The company reported strong order intake of €2.53 billion ($2.87 billion), up 24% year over year, led by Hydropower, Pulp & Paper and Metals. For 2025, the ANDRITZ Group sees project activity picking up across markets and broadly stable development in revenues and operational profitability. Supported by a solid backlog and continued growth in demand for service and green technologies, revenues are projected to be between €8 billion and €8.3 billion ($9.07-$9.41 billion). Aided by its ongoing measures to increase competitiveness and improvements in revenue mix driven by growing service business, the comparable EBITA margin is expected at 8.6-9.0%. ANDRITZ recently inked a deal to acquire Italian company A.Celli Paper to strengthen its position in the tissue and paper industry. The company has made 82 acquisitions since 2002. Its merger and acquisition strategy is focused on complementary business and technologies , while emphasizing on Service, Digitalization & Decarbonization. Headquartered in Graz, Austria, Andritz offers a broad portfolio of innovative plants, equipment, systems, services and digital solutions for different industries and end markets. The Zacks Consensus Estimate for ADRZY’s fiscal 2025 earnings has moved up 7% over the past 60 days. The estimate indicates year-over-year growth of 7.3%. The company's shares have gained 13.5% in the past three months. ADRZY currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Price: ADRZY Ashtead Group: The company delivered record rental revenue growth and EBITDA in the nine months ended Jan. 31, 2025, an increase of 5% and a 3% respectively. During this period, it invested $2.1 billion in capital across existing locations and greenfields, and $56 million on three bolt-on acquisitions, adding 54 new locations in North America. ASHTY is well-poised to deliver strong results, aided by its diverse end markets and products, lower debt levels and efforts to strengthen its market position. Initiatives to optimize the cash flow and reduce capital expenditure and operating costs are likely to contribute to growth. It continues to invest in a digital transformation program that will enhance customer experience. The company has a strong pipeline of strategic acquisition opportunities to supplement its organic growth plan. A good quality fleet and a strong financial position bode well. The Zacks Consensus Estimate for fiscal 2025 earnings for this London, U.K.-based company, which engages in the construction, industrial and general equipment rental business, has been revised upward by 0.1% in the past 60 days. The consensus estimate indicates year-over-year growth of 0.8%. The company has a long-term estimated earnings growth rate of 7%. The company's shares have declined 19.4% in the past three months. ASHTY currently carries a Zacks Rank #3 (Hold). Price: ASHTY ClearSign Technologies: The company reported record revenues of $3.6 million in 2024, resulting from both process burner and boiler burner orders. It recently expanded its partnership with Zeeco, Inc. to launch a co-branded process burner line called the Zeeco CS5 and Zeeco hydrogen CS5 Burners. This collaborative effort by ClearSign Technologies and Zeeco is expected to significantly reduce industrial emissions. The company remains focused on enhancing and innovating product offerings to expand scope and grow the total serviceable market, with an additional focus on diversifying the value of its products. Some of these innovations include the hydrogen burner, the M-Series burners, advanced flares and thermal oxidizers and improvements to ClearSign Eye sensor. The company recently announced it has received a purchase order for one of its new “M” series process burners, the ClearSign Core M1, from Devco Process. It has received a positive response to this technology, including multiple requests for quotations in addition to this order. The Zacks Consensus Estimate for Tulsa, OK-based ClearSign Technologies’ earnings for fiscal 2025 has been unchanged over the past 30 days. The estimate currently indicates year-over-year growth of 109%. CLIR has a trailing four-quarter earnings surprise of 11.11%, on average. The company's shares have declined 51.9% in the past three months. The company currently carries a Zacks Rank of 3. Price: CLIR Grainger: The company continues to deliver robust results, aided by margin improvements in its segments and strong operating performance. GWW is well-poised to gain from efforts to increase its customer base through incremental marketing investments and effective marketing strategies. The High Touch Solutions North America segment will continue to benefit from pricing actions and volume growth. The Endless Assortment segment is gaining from customer acquisitions at its Zoro and MonotaRO businesses. Cost-control measures undertaken by GWW will sustain margins. The company is also focused on improving the end-to-end customer experience by investing in its e-commerce and digital capabilities and executing improvement initiatives within its supply chain. The Zacks Consensus Estimate for fiscal 2025 earnings for the Lake Forest, IL-based company indicates year-over-year growth of 3.3%. GWW currently has a trailing four-quarter earnings surprise of 0.20%, on average. It has an estimated long-term earnings growth rate of 9.4% and a Zacks Rank of 3 at present. The company's shares have declined 9.7% in the past three months. Price: GWW Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report W.W. Grainger, Inc. (GWW) : Free Stock Analysis Report Ashtead Group PLC (ASHTY) : Free Stock Analysis Report ClearSign Technologies Corporation (CLIR) : Free Stock Analysis Report Andritz (ADRZY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments |
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| 06.04.25 07:46:22 | Is Ashtead Group plc (LON:AHT) Worth UK£37.9 Based On Its Intrinsic Value? |  |
| Key Insights Using the 2 Stage Free Cash Flow to Equity, Ashtead Group fair value estimate is UK£28.46 Current share price of UK£37.89 suggests Ashtead Group is potentially 33% overvalued Our fair value estimate is 52% lower than Ashtead Group's analyst price target of US$59.34 Does the April share price for Ashtead Group plc (LON:AHT) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by projecting its future cash flows and then discounting them to today's value. We will use the Discounted Cash Flow (DCF) model on this occasion. Don't get put off by the jargon, the math behind it is actually quite straightforward. We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. The Model We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) estimate 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$1.42b US$1.81b US$1.91b US$1.32b US$1.20b US$1.12b US$1.09b US$1.07b US$1.06b US$1.06b Growth Rate Estimate Source Analyst x8 Analyst x8 Analyst x7 Analyst x1 Est @ -9.50% Est @ -5.96% Est @ -3.48% Est @ -1.75% Est @ -0.53% Est @ 0.32% Present Value ($, Millions) Discounted @ 8.9% US$1.3k US$1.5k US$1.5k US$940 US$781 US$675 US$598 US$540 US$493 US$454 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF) = US$8.8b Story Continues After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.3%. We discount the terminal cash flows to today's value at a cost of equity of 8.9%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$1.1b× (1 + 2.3%) ÷ (8.9%– 2.3%) = US$17b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$17b÷ ( 1 + 8.9%)10= US$7.1b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$16b. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of UK£37.9, the company appears reasonably expensive at the time of writing. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out.LSE:AHT Discounted Cash Flow April 6th 2025 The Assumptions The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Ashtead Group as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.9%, which is based on a levered beta of 1.282. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Check out our latest analysis for Ashtead Group SWOT Analysis for Ashtead Group Strength Debt is well covered by earnings and cashflows. Dividends are covered by earnings and cash flows. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Trade Distributors market. Opportunity Annual revenue is forecast to grow faster than the British market. Good value based on P/E ratio compared to estimated Fair P/E ratio. Threat Annual earnings are forecast to grow slower than the British market. Moving On: Valuation is only one side of the coin in terms of building your investment thesis, and it is only one of many factors that you need to assess for a company. It's not possible to obtain a foolproof valuation with a DCF model. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. Why is the intrinsic value lower than the current share price? For Ashtead Group, we've compiled three important aspects you should assess: Risks: Take risks, for example - Ashtead Group has 1 warning sign we think you should be aware of. Future Earnings: How does AHT's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart . Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the LSE every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 05.04.25 09:59:24 | The Weekend: When Trump hit reset on global trade, sending markets into a tailspin | |
| It was a week like no other. In what most commentators saw as an act of grievous bodily harm on the global economy, Donald Trump sparked an all-out trade war by announcing the highest US import duties in more than a century. News of a 10% basic levy across the board and far higher rates for many countries sent markets into panic mode, as the future of the global trade order suddenly hung in the balance. The day after 'liberation day', markets across the globe shed about $2.5 trillion, the most since the onset of COVID five years ago, and there was no let-up on Friday. Apple (AAPL) was one of the biggest casualties, plunging by more than $300bn. As the UK mulled its response – it faces the minimum 10% tax on exports to the US – China wasted little time in retaliating with additional tariffs of 34% on all US goods, starting next week. Here are some highlights from the last seven days, plus a glimpse at the week ahead. Key moments from last weekTOPSHOT - Trump's unprecedented tariff regime has reset global trade norms.·STRINGER via Getty Images How Trump's tariffs will impact your finances and the UK economy In 2024, the UK exported almost £60 billion worth of goods to the US, meaning even the imposition of the lowest "baseline" tariff is a body blow. Economists warned the new duties could throw the UK's economy off course, and make it much harder for the government to meet its self-imposed borrowing rules. This could slow economic growth and force the government to cut public spending or raise taxes to stay within those fiscal limits. Prime minister Keir Starmer admitted the economy is bound to take a knock and promised any retaliatory measures would be calculated with "a cool head". Will Trump's tariffs change Bank of England's interest rate plan? The central bank faces a delicate decision – continue cutting interest rates, or pause and wait for more clarity on how the impact of the tariffs will play out. It is possible the rate-setters' commitment to keeping inflation in check with higher rates may take a back seat to concerns that the additional trade duties could damage an already struggling economy. Investors seem to believe that is the case, increasing their bets on a rate cut after Wednesday's announcements. The FTSE 100 companies that could come out best after Trump's tariffs For companies already producing some of their goods in the US, the hit from Donald Trump's trade levies is likely to be far softer. There are 20 companies in the FTSE 100 (^FTSE) index with more than 20% of their facilities in the US, according to AJ Bell analysis of Bloomberg data. Story Continues One of them is the UK defence company BAE Systems' (BA.L), which has well over half of its facilities stateside, with the manufacture of armoured vehicles, ship repair and explosive materials geared to supply the US Department of Defense. International equipment hire company Ashtead (AHT.L) is in the best position of all, with 90% of its facilities located in the US. Do also check out our money stories for all your personal finance needs. The trade war escalation could deliver a blow to mortgage holders as uncertainty takes hold: What Trump's tariffs could mean for UK mortgage rates "Build-to-rent is completely transforming the rental experience, offering high-quality, professionally managed homes that truly put renters first," says Anne-Marie Brown, founder of property portal Love to Rent. We brought you a selection of the available options: 11 purpose-built rental homes that provide peace of mind Find more personal finance gems here: Money Matters Finally, here’s how the week ahead looks The UK's property market will be in the spotlight on Monday morning as Halifax reveals its house price index for March. Attention will turn stateside on Thursday where inflation data may give a steer as to the Fed's next move. Expectations are for a slight drop in the annual inflation rate to 3% from 3.1% in February. On Friday the focus shifts back to the UK where hopes are high for an improvement in the monthly GDP reading as well as industrial production. The consensus is for a 0.1% uptick in both in March. On the company earnings front, supermarket Tesco (TSCO.L) is expected to produce strong full-year results, with operating profits anticipated to come in ahead of guidance. Read more: Stocks to watch next week Investors will want to see how turnaround efforts are coming along at Boots-parent company Walgreens Boots Alliance (WBA), as the company gears up to be taken private later this year after agreeing a takeover deal last month. With most retail shares falling in the wake of 'liberation day', investors will be poring over the latest results from Levi Strauss (LEVI) for any commentary, when the US jeans maker releases its first quarter earnings on Monday. End note: Record spring's vital signsA singing song thrush is one of the vital signs of spring.·picture alliance via Getty Images Spring is well and truly in the air now, as much of the UK basks in sunshine and unseasonably warm temperatures. To escape the seemingly endless doom and gloom in the news, why not get out into nature and help the Woodland Trust gauge how wildlife is handling changes in the climate. They're asking the public to look out for any of spring's three vital signs – frogspawn, a singing song thrush or flowering blackthorn. Find out more here View Comments |
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| 04.04.25 15:15:52 | The FTSE 100 companies that could come out best after Trump's tariffs | |
| As a day of reckoning plays out in across global markets, some companies listed in the FTSE 100 (^FTSE) will be glad they hedged their bets in the US ahead of US president Donald Trump's sweeping tariff decisions. As widespread so-called "reciprocal tariffs" were brought in by Trump on Wednesday, many companies doing business with the US will be thinking of how to restructure deals and the products they produce. The UK received a comparably more lenient 10% levy, while EU countries face a 20% import tax to the US. Meanwhile, China was slapped with a 34% tariff which it said on Friday it would reciprocate. As countries scramble to renegotiate their terms with one of the world's biggest trading nations, companies are right to be worried. “UK companies selling into the US could see a slowdown in sales if US customers deem goods too expensive under the new tariff regime," said Dan Coatsworth, investment analyst at AJ Bell. Read more: How Trump's tariffs will impact your finances and the UK economy "It means companies need to assess all their options to keep their engines ticking over smoothly and not spluttering." He added: “One way for UK companies to get around tariffs is to build more products in the US. Investing in factories or offices creates jobs for Americans and could bring significant investment to industrial heartlands, something that would please Trump no end." AJ Bell looked into the FTSE (^FTSE)-listed companies with the biggest proportion of their operations in the US. Some UK companies have already planted flags Stateside. There are 20 companies in the FTSE 100 (^FTSE) index with more than 20% of their facilities in the US, according to AJ Bell analysis of Bloomberg data. This suggests that markets might have over-exaggerated the tariff hit to certain stocks. If a big chunk of goods are made and sold on US soil by UK companies, there are no tariffs to pay. International equipment hire company Ashtead (AHT.L) topped the charts, with 90% of its facilities located in the US. Meanwhile food service company Compass (CPG.L) clocked 68% of its sales across the pond. Credit ratings agency Experian (EXPN.L) also collects just under half of its sales from US markets, with 59% of its facilities based in the US. Here's the data: As defence has become increasingly important in recent months, it's notable that BAE Systems' (BA.L) operations are mostly Stateside. Calculations show 59% of its facilities are in the US, with the manufacture of armoured vehicles, ship repair and explosive materials geared to supply the US Department of Defense. Story Continues Meanwhile, approximately two thirds of aerospace tech firm Melrose’s (MRO.L) sales come from America and 29% of its facilities are in the country. Last December Melrose-owned GKN Aerospace opened a $55m repair facility for aero-engine components in San Diego, which was a major financial commitment. It doubles the company’s maintenance, repair and overhaul capacity in the region, AJ Bell added. “The fact many UK companies are already in the States is important on another level. Having an existing presence makes it easier to press the button on adding more, rather than starting from scratch in the country," said Coatsworth. By 3.30pm on Friday in London, the FTSE 100 (^FTSE) was down around 4.7%, with all component parts of the index in decline, according to Yahoo data. The top fallers were mining companies, which are typically vulnerable to trade disputes, and financial services firms and banking stocks. Read more: What Trump's tariffs could mean for UK mortgage rates Will Trump's tariffs change Bank of England's interest rate plan? How and when Trump's tariffs could impact UK inflationDownload the Yahoo Finance app, available for Apple and Android. View Comments |
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| 20.03.25 07:01:24 | Investors Met With Slowing Returns on Capital At Ashtead Group (LON:AHT) | |
| Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. So, when we ran our eye over Ashtead Group's (LON:AHT) trend of ROCE, we liked what we saw. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Return On Capital Employed (ROCE): What Is It? For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. To calculate this metric for Ashtead Group, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.13 = US$2.6b ÷ (US$22b - US$1.5b) (Based on the trailing twelve months to January 2025). Thus, Ashtead Group has an ROCE of 13%. That's a relatively normal return on capital, and it's around the 14% generated by the Trade Distributors industry. Check out our latest analysis for Ashtead Group LSE:AHT Return on Capital Employed March 20th 2025 In the above chart we have measured Ashtead Group's prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering Ashtead Group for free. The Trend Of ROCE While the returns on capital are good, they haven't moved much. The company has employed 63% more capital in the last five years, and the returns on that capital have remained stable at 13%. 13% is a pretty standard return, and it provides some comfort knowing that Ashtead Group has consistently earned this amount. Stable returns in this ballpark can be unexciting, but if they can be maintained over the long run, they often provide nice rewards to shareholders. What We Can Learn From Ashtead Group's ROCE In the end, Ashtead Group has proven its ability to adequately reinvest capital at good rates of return. On top of that, the stock has rewarded shareholders with a remarkable 183% return to those who've held over the last five years. So while investors seem to be recognizing these promising trends, we still believe the stock deserves further research. If you'd like to know about the risks facing Ashtead Group, we've discovered 1 warning sign that you should be aware of. Story Continues If you want to search for solid companies with great earnings, check out this freelist of companies with good balance sheets and impressive returns on equity. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 06.03.25 13:39:00 | This Beaten-Down Industrial Stock Wants to Call America Home. Why It’s Time to Buy. | |
| Ashtead Group, a London-based renter of construction equipment, has growth plans at the ready. It should get a boost when it relists in the U.S. Continue Reading View Comments |
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| 06.03.25 05:06:00 | Ashtead Group Third Quarter 2025 Earnings: EPS: US$0.71 (vs US$0.76 in 3Q 2024) | |
| Ashtead Group (LON:AHT) Third Quarter 2025 Results Key Financial Results Revenue: US$2.57b (down 3.4% from 3Q 2024). Net income: US$309.7m (down 6.8% from 3Q 2024). Profit margin: 12% (in line with 3Q 2024). EPS: US$0.71 (down from US$0.76 in 3Q 2024).LSE:AHT Earnings and Revenue Growth March 6th 2025 All figures shown in the chart above are for the trailing 12 month (TTM) period Ashtead Group Earnings Insights Looking ahead, revenue is forecast to grow 6.4% p.a. on average during the next 3 years, compared to a 5.4% growth forecast for the Trade Distributors industry in the United Kingdom. Performance of the British Trade Distributors industry. The company's shares are down 6.3% from a week ago. Risk Analysis We don't want to rain on the parade too much, but we did also find 1 warning sign for Ashtead Group that you need to be mindful of. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 05.03.25 17:01:00 | Ashtead Group Q3 Earnings Miss Estimates, Revenues Decrease Y/Y | |
| Ashtead Group plc ASHTY reported adjusted earnings of 77 cents per share in third-quarter fiscal 2025 (ended Jan. 31, 2025), which were 5% lower than the year-ago quarter. ASHTY’s earnings per American Depositary Receipt (ADR) were $3.09. The metric missed the Zacks Consensus Estimate of $3.47 per share. Each Ashtead Group ADR represents four ordinary shares. Find the latest EPS estimates and surprises on Zacks Earnings Calendar. Ashtead Group Witnesses Higher Rental Revenues in Q3 The company reported net revenues of $2.57 billion, down 3.4% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $2.62 billion. Rental revenues increased 1% year over year to $2.38 billion. The sale of new equipment, merchandise and consumables declined 3.4% year over year to $79 million. The sale of used rental equipment plunged 50.8% to $108 million. U.S. total revenues fell 3.4% year over year to $2.2 billion in the fiscal third quarter. Revenues in Canada decreased 6.9% to $158 million and U.K. revenues fell 0.2% to $207.5 million. U.S. rental-only revenues were 1.1% higher than a year ago. Canada’s rental-only revenues increased 0.4%, whereas the U.K. saw a 1% increase in rental revenues. ASHTY’s Q3 Operating Profit Declines Total operating costs slipped 6.2% year over year to $1.39 billion. The adjusted operating profit dipped 6.9% year over year to $550 million. Adjusted operating margin contracted 81 basis points to 21.4%. EBITDA rose 0.2% year over year to $1.17 billion due to higher depreciation and amortization. The EBITDA margin was 45.6% compared with the year-ago quarter’s 44%. Ashtead Group’s Q3 Cash Position & Balance Sheet The company reported cash and cash equivalents of $25.8 million as of Jan. 31, 2025, compared with $22.4 million as of Jan. 31, 2024. It generated $1.19 billion in cash from operating activities in the first nine of fiscal 2025 compared with $0.01 billion in the prior-year period. The free cash flow for the first nine months of fiscal 2025 was $858 million against $463 million in the prior-year period. ASHTY’s net debt was $10.61 billion at the end of the quarter, down from $11.17 billion at the end of the prior-year quarter. Ashtead Group’s net debt to adjusted EBITDA ratio was 1.7X as of Jan. 31, 2025, compared with 1.9X as of Jan. 31, 2024. ASHTY Lowers Outlook for Canada Rental Revenues in FY25 Ashtead Group expects total rental revenues to rise 3-5% in fiscal 2025. It expects U.S. rental revenues to increase 2-4%. U.K. rental revenue growth is likely to be 3-6%. Canada rental revenues are expected to rise 9-13% compared with the previously mentioned 15-19%. The capital expenditure for fiscal 2025 is anticipated to be $2.5 -$2.7 billion. Story Continues Ashtead Group Stock’s Price Performance The company’s shares have lost 11.7% in the past year compared with the industry’s 10.8% decline.Zacks Investment Research Image Source: Zacks Investment Research ASHTY’s Zacks Rank Ashtead Group currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Ashtead Group’s Peer Performances Global Industrial Company GIC reported earnings of 27 cents per share in fourth-quarter 2024 and missed the Zacks Consensus Estimate of 28 cents. The bottom line decreased 32.5% from the year-ago quarter’s earnings of 40 cents. Global Industrial recorded net revenues of $302 million in the reported quarter, down 5.6% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $306 million. W.W. Grainger, Inc. GWW recorded adjusted earnings per share of $9.71 in fourth-quarter 2024, missing the Zacks Consensus Estimate of $9.75. Grainger reported fourth-quarter 2023 EPS of $7.89, including the adjustment for the loss on the sale of Grainger's subsidiary, E&R Industrial Sales, Inc., completed in the said quarter. Grainger’s quarterly revenues rose 5.9% year over year to $4.23 billion. However, the top line missed the Zacks Consensus Estimate of $4.24 billion. Daily sales increased 4.2% from the prior-year quarter. We predicted daily sales to increase 3.8%. Hillenbrand, Inc. HI registered adjusted earnings per share of 56 cents in the first quarter of fiscal 2025, beating the Zacks Consensus Estimate of 54 cents. HI posted earnings of 69 cents in the year-ago quarter. The company reported revenues of $707 million compared with the prior quarter’s $773 million. The top line surpassed the Zacks Consensus Estimate of $695 million. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report W.W. Grainger, Inc. (GWW) : Free Stock Analysis Report Hillenbrand Inc (HI) : Free Stock Analysis Report Global Industrial Company (GIC) : Free Stock Analysis Report Ashtead Group PLC (ASHTY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments |
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