Caterpillar Inc: Cat MineStar Developments & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (08/22)

Despite persistent supply chain difficulties, Caterpillar delivered another strong quarter with a double-digit top line growth though it did fail to meet Wall Street expectations on the revenue front. Most of its end markets are experiencing strong demand and its strong margin profile did help deliver an earnings beat. The management achieved stronger services revenue and better-than-anticipated price revenue, which were offset by lower-than-anticipated user sales. Besides, the quarter saw their

Caterpillar Inc.: Market Positioning & Macro-Economic Outlook, Key Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (05/22)

Caterpillar had a decent quarter, performing quite well in a challenging environment. The company’s sales, earnings, and revenues have declined in the current quarter mainly because of lower end-user demand. A margin improvement has been seen driven by better factory efficiencies, favorable geographical mix, and a combination of cost control. Caterpillar maintains a strong balance sheet, has been introducing various innovative products and is increasing its digital capabilities. The construction

Caterpillar Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report, Key Risks & ESG Assessment (02/2022)

Caterpillar had a fairly good 2021 as a result of volume gains and favorable pricing, sales and revenues increased in all regions and in all three primary segments. Increasing oil prices, a rise in U.S. infrastructure budgets, potential housing demand, and rising mining activity should benefit the company. Among key updates, the company announced a three-year partnership with Microsoft and Ballard to demonstrate a power system that uses large-format hydrogen fuel cells to provide backup power to

Caterpillar: Financial & Price Forecasts, DCF Valuation, ESG Risks 02/22

Caterpillar had a decent 2021 as the management continued to execute their long-term profitable growth strategy while meeting strong customer demand. Due to volume gains and favorable pricing, sales and revenues increased in all regions and in all three primary segments. Rising oil prices, increased infra spends, potential housing demand, and rising mining activity should benefit the company. Among key updates, Caterpillar announced a three-year partnership with Microsoft and Ballard to demonstr

Caterpillar Inc: A Major Beneficiary Of The Infrastructure Bill (12/2021)

Caterpillar had a strong third quarter result as the management continues to strive to minimize the impact of supply chain difficulties and the inflationary environment. The rising prices of commodities, metals, and oil are bound to benefit the company as they would result in increased mining activity. Also, the recent $1.2 trillion infrastructure bill passed in the U.S. on November 5, 2021 is expected to drive a large scale consumption of Caterpillar’s equipment by infra players. While its Asia

Caterpillar Inc - Investment Thesis, Key Drivers, Financial & Price Forecasts, DCF Valuation

Caterpillar had a strong quarterly result but the impact of inflationary pressures played spoilsport against the company’s margins. Despite delivering an all-around beat backed by a robust demand for its equipment, particularly in the construction and mining industries, the company witnessed a margin contraction on account of rising commodity prices. The management openly communicated that it might expect a further margin contraction in the third quarter of the year. The company witnessed a 40%

SP Angel Morning View: Tin and Rare Earths continue to lead as iron ore and steel prices pull back

Aura Energy* - (AURA LN) – Quarterly report highlights progress with Tiris uranium project Beowulf Mining* (BEM LN) – £100k investment in Vadar Caerus Mineral Resources (CMRS LN) – Option agreement with Bezant Resources Caterpillar – (CAT N) – Cost inflation hits shares despite rise in quarterly earnings CGN Mining (1164 HK) – CGN Mining signs deal to acquire 49% of Ortalyk from Kazatomprom for US$435m Power Metal Resources* (POW LN) – Significant expansion of exploration ground in the KCB

Morning Note – 22 April 2024

Benefits of scale set to materialise

Frenkel Topping - Resilient with strong growth potential

FY 2023 was a challenging year for Frenkel with higher interest rates encouraging clients to place money into lower margin money market funds. Despite this, sales grew +32% (supported by recurring revenue +9% and +51% in non-recurring), EBIT margins remained strong at 22% and adj. EPS grew +17% (taking into account the higher number of shares). FY 2024 has seen a solid start to transactional business and there is a strong pipeline of new FUM opportunities both of which support further growth. Wi

S&U - PBT ahead, encouraging volume trends

S&U reported FY24 PBT of £33.6m, down from £41.4m in FY23 on higher funding and regulatory costs and higher impairments in Advantage in H2. PBT was 2% ahead of our forecast as stronger revenues – up 12% to £115.4m – and better costs offset higher-than-expected impairments. Net receivables grew to a record at both Advantage and Aspen and management noted particular strength in Q4 and a good trading environment in the current year. Having absorbed a significant rise in funding cost as well as addi

Hardman & Co Insight: 2023 was an annus horribilis for Quoted UK Infrastructure and Renewable Energy

The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no

Foresight Solar Fund - Termination of coverage

Edison Investment Research is terminating coverage on ABC Arbitrage (ABCA), paragon (PGN), Foresight Solar Fund (FSFL), Kendrion (KENDR), Lithium Power International (LPI), Triple Point Energy Transition (TENT), 4iG (4IG), e-therapeutics (ETX), Pharnext (ALPHA) and Shield Therapeutics (STX). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our web

LIBERUM: PayPoint: On track for £100m of EBITDA in FY 26

Regional REIT - Performing as expected ahead of refinancing

In a challenging market, Regional REIT’s (RGL’s) FY23 operational and financial performance was robust, in line with expectations and previous guidance. Investor focus remains on the company’s loan to value (LTV) reduction and bond refinancing plans, explored in detail in our previous note and RGL will provide an update on this in due course.

Hybridan Small Cap Feast - 22 April 2024

22nd April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi

LIBERUM: Speedy Hire: Weakness in FY 24 but recovery in FY 25

The Hardman & Co Monthly: April 2024

Feature article: Steady as she goes, but could be better: A review of investment company liquidity since 2016 Liquidity is the lifeblood of equity markets. The measurement of liquid asset availability to a market or company is a way of gauging a market’s health. This article builds on our previous work, which analysed the liquidity data for non-financial trading companies, by applying the same analytical techniques to the investment companies (IC) space. We analyse liquidity for ICs as a whol

Foxtons Group (FOXT LN) - 1Q24 IMS shows real momentum

Foxtons Group plc first quarter revenue rose 9% to £35.7m (1Q23: £32.9m) with growth delivered across all business segments. Trading is in line with management's expectations.

Morning Note – 29 February 2024

Jupiter Green

Hardman & Co Insight - Asset managers had a poor 2022

Asset managers had a poor 2022: the S&P Composite 1500 Asset Management Index was down 22% and, according to the Investment Company Institute (ICI), worldwide mutual funds fell by 20%, from $76tr to $60tr. When bond and equity markets fall, the results are unlikely to be pretty: with revenues trending down and multiples contracting, there is a double whammy to contend with. So how do valuations shape up now, after a bullish start to the new year? The first chart is my favourite chart of asset m