Today’s offer covers these two strategies, on the one hand, seeking a certain asylum in a company such as Newmont Corp., the only gold producer listed on the S&P 500; We’ll continue the defensive zone, by definition, with food, the craft chosen. And to participate in the juicy benefits registered by oil companies, we selected Exxon Mobil; and Lockheed Martin, on the side of increasing demand for defense products and services.
Newmont Corporation, is a mining company focused on the production and exploration of gold, copper, silver, zinc and lead. It is the only gold producer listed on the S&P 500 Index and is widely recognized for its environmental, social and governance practices. The company has operations and assets in North America (United States, Canada and Mexico), South America (Peru, Suriname, Argentina and the Dominican Republic), Australia and Ghana. The company has gold reserves of approximately 92.8 million ounces, measured and indicated gold resources of more than 68.3 million ounces. Newmont’s outlook appears strong and is in the midst of a significant investment phase in its portfolio of organic projects, a key component in increasing production, improving margins and extending mine life.
Evaluated by multiples and estimating results for the end of 2022, Newmont has room for price increases, The market is discounting the high historical valuation against 20.6v, with a selling multiplier of 3.6v. Also for cash flow and EV/EBITDA, ratios below the historical average of recent years. The return on dividends is not negligible and adds attractiveness to investing in a company whose business is gold, which can be described as a “safe haven”.
Based on a fundamental analysis, the valuation is Positive For securities of Newmont Corp with medium/long term tenors.
Lockheed Martin Headquartered in Bethesda, Maryland, is a global security and aerospace company that employs approximately 114,000 people worldwide and is primarily engaged in the research, design, development, manufacturing, integration and maintenance of systems, advanced technology products and services. Is. It is the largest defense contractor in the world. Which divides its business into five segments: Aeronautics (40% of the Group’s total business at the end of 2021), Rotary & Mission (25%, Radar, Helicopters, Cyber Security), Space (17.6%, Satellites, Rockets) and missiles ( 17.4%).
Lockheed Martin has maintained historical growth in its turnover of 8% and profits of 10% over the past 5 years. The good generation of liquidity is supported by the fact that it has made good acquisitions to promote inorganic growth, apart from paying its shareholders through dividends and through repurchase of shares.
In valuations by stock market multiples to forecast current year-end results, the security trades at a discount to its main competitors. The market pays 18v per year for Lockheed Martin, while a field average pays for this ratio of 25v. Discounts on sales also manifold (1.67v for Lockheed vs. 3.8v sector average) and cash flow (13.8v for Lockheed vs. 20.5v sector average). The EV/EBITDA multiple remains moderate and has room for improvement compared to its peers (12.6v for Lockheed versus the 16v average). Generous through dividends, with a near-yield yield of 2.5%, compared to an average of about 1.7% for its competitors. It also supplements this remuneration with the repurchase of its own shares.
Based on a fundamental analysis, the valuation is Positive For Lockheed Martin securities with a medium/long term time horizon.
The Craft HenzoIt is positioned as the 5th largest food group in the world. It is a leader in products such as cheeses, salad dressings, coffee, snacks, meats, frozen meals, condiments (Heinz) in the US. Also very well located in Canada, Europe, Asia and Latin America.It is therefore a defensive business, with very high demand and very little exposure to rate hikes. The group maintains a strategy focused on innovation, seeking to focus on the needs and new tastes of consumers. This strategy gives it greater ability to set prices and transfer cost escalation to the final price of its products.
In valuations of multiples and stock market ratios and forecast for end-of- 2022 results, Kraft shares have room for growth, The market pays per 14V with a PSV of around 1.7 and a cash flow ratio of less than 11V. Book value wise, the market discount is 0.92v and the dividend yield is very interesting, >4%.
Based on a fundamental analysis, the valuation is Positive For medium/long term craft securities.
Exxon Mobil, It is the No. 1 oil company worldwide among private conglomerates. Present across the entire oil chain from exploration-production, refining, petrochemicals and distribution. The rise in the price of crude is thickening the company’s income statement, along with an increase in cash that will be allocated To grow in gas and oil. And it is that in the second quarter of 2022, ExxonMobil reported a net profit of $17,850 million (€17,529 million), almost four times more than the year before. It also improves its balance sheet, which can result in higher dividends in addition to repurchasing its own shares.
In valuation by multiples and under forecast of results for the end of 2022, the market discounts at 7.71v per, With room to grow. Adjusting per for projected EPS growth (+127%), the PEG multiple reflects the company’s apparent devaluation (0.06v) in the market. Discount for PCF and PSV as well. Interesting dividend yield, at 3.67% at current prices and we anticipate this could increase.
Based on a fundamental analysis, the valuation is Positive With a medium/long term time horizon for Exxon Mobil Securities.
The data, opinions, estimates, forecasts and recommendations contained in this report have been prepared by Estrategias de Inversión and its affiliates for the purpose of providing its users with information about companies, sectors and financial markets, without any personal recommendation directly or indirectly. The company or asset analyzed to constitute personal investment advice. The analysis is based on preparing detailed financial projections based on public information and following the methodology of traditional fundamental analysis. The stated parameters represent the analyst’s opinion or personal estimate. The person receiving this analysis should apply their own judgment when using the said parameters, and consider them as another element in their investment decision process. These parameters do not constitute a personal investment recommendation.