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This is thanks, in part, to Carnival's fantastic earnings performance, but another element may be even better news for shareholders. This also weighed on the shares, which plunged nearly 60% in 2020. And the company also expects adjusted return on invested capital of 10.5%, a half-point better than earlier guidance.
In 2020, the price per barrel fell below $25, only to zoom past the $100 market two years later. Trust in superior capital allocation Capital allocation in the oil space can be difficult because a company's survival is often prioritized over shareholder profits. Buffett likes companies that put shareholder interests first.
One such stock moving higher lately is specialty grocer Sprouts Farmers Market (NASDAQ: SFM) , which has risen over 280% since 2020. Here's what sets the company apart, making it a perfect dollar-cost-averaging candidate today for a $100 investment.
You can see below that Illinois Tool Works has seen the occasional bump; revenue declined during recessions in 2001, 2009, and 2020. ITW Return on Invested Capital data by YCharts. In other words, the business has grown and become more efficient at creating profits, a potent combination for stellar investment results.
As the leading pool products and supplies distributor in the United States, the aptly named company was added to the S&P 500 index in 2020 amid its incredible run of outperformance. A stellar return on invested capital Leveraging the power of its leadership position in the pool supplies and pool-related products market, Pool Corp.
The business beat Wall Street estimates on both the top and bottom lines in the three-month period, which is certainly an encouraging sign for shareholders. In 2020, the company was forced to halt its operations to help stop the spread of the virus. This is evidenced by the company's extremely low return on invested capital (ROIC).
Airlines aren't productive (at least for shareholders) The ultimate test of whether a company is allocating capital productively for shareholders is the comparison between its return on invested capita l (ROIC) and its weighted average cost of capital (WACC). Net Profit 2019 2020 2021 2022 (Est.) Global $26.4
Expanding the store base has helped drive up sales over the years, leading to impressive shareholder gains for longtime investors. For example, had you bought the stock 20 years ago, you'd have generated a monster total return of 1,520%. Home Depot clearly dominates the home improvement industry.
Palantir launched its initial public offering (IPO) in September 2020 during a bull market. Palantir shareholders might also remember in 2021 when CEO Alex Karp forecasted a 30% revenue growth rate in the 2022-2024 time frame. Even now, Palantir stock sells at a discount of more than 60% from its $45 per share high in early 2021.
Diageo stock trades at a valuation it hasn't seen since 2012 (even including the crash in March 2020). Here's why now may be the time to invest in Diageo and its 2.7% dividend yield. Diageo is building upon its leadership position Diageo has a 4.7%
But Palantir's 2020 IPO shined a light on the vast potential for AI, and its stock was off to the races. The same algorithms, retrained and let loose on business data, can help predict customer preferences, calculate product demand, and allocate scarce resources to get the greatest return on investment.
Best-in-class profitability and incredible returns However, this leadership position means nothing if it doesn't lead to profits and free cash flow (FCF). With a return on invested capital (ROIC) of 28% and an expected $1 billion in FCF in 2023, Bombardier is also a leader on the profitability side of things.
The return on investment for Chevron's acquisitions won't be immediate, but its healthy dividend should give investors the patience to stick around for the long haul. However, shareholders shouldn't have to worry about that with Enbridge. That would bring it to $1.63 CVX Dividend data by YCharts.
million, producing a core EBITDA margin of 11% and a trailing 12-month return on invested capital of 8.4%. In its complaint filed in the California courts in 2020, Pacific Steel Group claimed, among other things, various restraints on trade by CMC. For the first quarter, we generated consolidated core EBITDA of 210.7
Thanks to its best-in-class brand, friendly cash returns to shareholders, and a rightsizing inventory that has dropped 17% from its 2022 highs, Nike looks like a premium business trading at the fair price of 25 times free cash flow (FCF). It's home to a well-funded 2.3%
Also, many of the companies in this industry are structured as master limited partnerships, which makes each shareholder responsible for their portion of the partnership's taxable income. What makes MPLX stand out among its peers is its strong rates of return, capital discipline, and generous returns to shareholders.
Shares of beauty retailer Ulta Beauty (NASDAQ: ULTA) have more than tripled the total return of the S&P 500 since their initial public offering in 2007, rising more than 1,300%. This extra bit of resiliency makes Ulta a unique investment opportunity in the retail market, especially considering its other market-beating indicators.
O'Reilly Automotive: Total return of 8,790% since 2020 Vehicle repair retailer O'Reilly Automotive has delivered 31 consecutive years of sales and earnings growth. What makes these expansion plans look so promising for investors is that O'Reilly's return on invested capital (ROIC) of 67% is one of the highest on the market.
Since its initial public offering in 1981, Home Depot (NYSE: HD) has done a fantastic job of growing shareholders' capital. Because these customers spend much more than DIYers, they have helped Home Depot usually report a higher operating margin and return on invested capital (ROIC) historically.
This resulted in higher realized iron ore premiums, but more importantly, higher margins and returns on invested capital. In Base Metals, we continue to make solid progress having achieved the highest copper production since 2020, driven by Salobo, which produced roughly 200 kilotons of copper in 2024.
LianBio secured the commercialization rights for mavacamten in China and other Asian markets from MyoKardia in August 2020. That's a hefty return on investment considering that LianBio paid MyoKardia $40 million for the rights to mavacamten just three years ago. Why did LianBio strike a deal with Bristol Myers Squibb?
In addition to its low-volatility shares, the company maintains a robust 25% net income margin and a towering 72% return on invested capital (ROIC). The company currently has zero debt on its balance sheet, leaving management free to return the vast majority of its net income and free cash flow (FCF) to shareholders.
About 1 million people went for plastic surgery in 2020 in the country despite the COVID-19 pandemic, which means that there's a massive audience for the less-invasive cosmetic interventions that InMode's workstations offer. InMode has no debt, which makes it easier to deliver higher returns than its cost of capital.
In Buffett's 2021 shareholder letter, he referred to Tim Cook as Apple's "brilliant CEO" and praised his decision to repurchase Apple shares. I have a stronger argument for why Buffett could view Apple as his next Coca-Cola. A "brilliant CEO" And this has to do with his confidence in the way the company is run and its solid earnings record.
Repurchases offer "a simple way for investors to own an ever-expanding portion of exceptional businesses," Buffett wrote in his 2020shareholder letter as he referred to the Apple holding. Why would Buffett, who generally doesn't focus on tech stocks, invest in a tech giant like Apple? Today, Berkshire owns about 5.8%
annual shareholder meeting and changes to the company's public equity holdings indicate that Berkshire isn't a net buyer in today's market. This can give utilities a return, allowing them to invest in more infrastructure and pay dividends to shareholders. Context is critical in the stock market.
Over the last decade, MTY has averaged a return on invested capital (ROIC) of 15%, generating high levels of FCF compared to the debt and equity it uses to fund its M&A ambitions. Should you invest $1,000 in MTY Food Group right now? MTYFF EV to EBITDA and EV to FCF data by YCharts In addition to these valuations, MTY's 2.5%
In 2020 it was the COVID-19 pandemic. American Electric Power has demonstrated steadfast dedication to the dividend, returning capital to shareholders with a distribution for 112 years. Should the company achieve its target of returning $3.37 The last five years have featured three distinct stock market sell-offs.
Finally, I'll finish my remarks by narrowing in on specific actions we're taking in the near term to drive improved profitability and enhance shareholder value in 2025. I'll then shift focus to some of our key markets and our progress on new products. Then our CFO, Jeff Creech, will provide more details on our financials.
Even with strong demand, however, Carnival still has a long road to travel to recover from the pandemic as it took on significant debt during the global health crisis and diluted shareholders, meaning it will take more than a recovery in operating profits to return to its previous level of shareholder value.
By the time Rivian had its initial public offering (IPO) in 2021, it revealed that Amazon had become Rivian's largest shareholder as a result of this partnership. Remember, Amazon invested in Rivian before the IPO and subsequent absurd run-up in the start-up's valuation. Amazon has skyrocketed into the No.
Payment network Mastercard (NYSE: MA) has done very well for shareholders, despite playing second fiddle to archrival Visa. A mere $1,000 invested in Mastercard at its IPO in May 2006 would be worth over $104,050 today. Now that it's a behemoth, future investmentreturns probably won't be as lucrative.
Its wide moat means that as long as the company operates efficiently, it could generate market-beating returns over the long haul. And historically, it has done just that, generating a 12% cash return on invested capital over the last decade. MTN Cash Return on Capital Invested (CROCI) (TTM) data by YCharts.
While only 19 states had adopted safe digging as a best practice as of 2020, several more appear to be in the pipeline. Meanwhile, the company's second-largest unit, vacuum trucks -- which accounts for 22% of sales -- is benefiting from the ongoing adoption of safe digging practices across North America.
The deep 2020 oil bust, which saw oil prices fall below zero in the U.S. Over the last 10 years, the company has generated an average return on invested capital (ROIC) of 12%, indicating management's efficiency in spending capital on high-return projects. But its debt-to-equity ratio at 0.65 TTM = trailing 12 months.
A consistently high return on invested capital (ROIC) also offers convincing evidence of ASML's competitive advantage and operational excellence. The stock's valuation reached completely unsustainable levels in 2020, and it has since crashed back to a more reasonable level.
Making 115 acquisitions since the start of 2020 (including nine in the second quarter of 2023 alone), Rollins is masterful at deploying the immense amounts of free cash flow (FCF) -- cash flow after expenses for capital maintenance and improvements -- it generates. Trading at about 15 times forward FCF, Kenvue's 3.8%
You didn't need that to go, here is Apple, the largest company in the world by market cap, the biggest cash generation story that I've seen in my career, and I've been doing this for a while, that had a really interesting habit of returning all of the cash and then sum to shareholders in the form of a small dividend and very large stock buybacks.
We are walking the talk and returning value to shareholders. billion in dividends while completing 17% of the fourth buyback program launched since 2020. Since 2020, we increased safety conditions up to adequate levels for 16 dams. Lastly, our discipline in capital allocation remains untouched. In March, we paid $2.3
See the 10 stocks *Stock Advisor returns as of August 1, 2023 The amount of business we conducted with this company was quantitatively insignificant and we have not worked with them since 2020. Now let me turn it over to Chris to discuss our results in greater detail. I'm excited about going forward.
During a time of geopolitical turmoil and economic uncertainty, our objective remained unchanged: Safely deliver higher returns and lower carbon. Our clear and consistent approach resulted in an adjusted ROCE of 14% and enabled a record of $26 billion in cash return to shareholders, while growing production to a company record.
These initiatives are just a few examples of the many different types of projects that can drive significant impact for customers, our associates, and shareholders. After investing in our business and paying our dividend, it is our intent to return excess cash to shareholders in the form of share repurchases.
So, while it has future potential, its capital requirements and management bandwidth consumption have really led me to direct our team to evaluate all strategic alternatives to maximize shareholder value from this asset. Third, we're intensifying our focus on financial discipline and shareholderreturns.
We are continuing to advance our key strategic priorities to drive shareholder value by accelerating profitable growth, driving productivity and operational excellence, and empowering our people. Throughout the quarter, we advanced our enterprise strategic priorities to drive shareholder value for the long term.
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