INFO - Embedded Expectations Analysis - 2018 08 10
IHS Markit Ltd. (INFO:USA) is currently trading above recent averages relative to UAFRS-based (Uniform) Earnings, with a 20.9x Uniform P/E. However, even at these levels, the market has bearish expectations, and management has concerns about maintaining strong results and increasing competitionSpecifically, management may have concerns about the sustainability of their EBITDA margin, EPS and revenue growth. Additionally, they may be downplaying concerns about flat annual contract value (ACV) in the Resources segment, and rising acquisition-related costs. They may also be concerned about tough comparables and strong competition dragging down results, with political uncertainty limiting their profitability. Additionally, they may lack confidence in their ability to monetize and maximize the merger synergies, and to implement one CRM platform for all sales teams to increase efficiency
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- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
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- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
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- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
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