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Valens Research
  • Valens Research

Valens Equity Insights and Inflections - 2018 09 26

RCL currently trades below historical and corporate averages relative to UAFRS-based (Uniform) Earnings, with a 18.6x Uniform P/E. At these levels, the market is pricing in expectations for Uniform ROA to fade from 10% in 2017 to 9% in 2022, accompanied by 2% Uniform Asset growth going forward. However, analysts have more bullish expectations, projecting Uniform ROA to remain at current 10% levels through 2019, accompanied by 9% Uniform Asset growth. Moreover, management's confidence in operati...

Richard Hilgert
  • Richard Hilgert

Morningstar | Volkswagen Reports Solid 2Q Results on Higher Volume; Ma...

No-moat-rated Volkswagen reported earnings per diluted preferred share before special items of EUR 8.85. The result was strong, obliterating the consensus EPS estimate of EUR 5.56 and well ahead of the EUR 6.06 reported in the second quarter of 2017. Consolidated revenue increased 3% to EUR 61.1 billion from EUR 59.2 billion on a 5% increase in consolidated unit volume, excluding China joint ventures, and a 7% increase in financial-services revenue. Second-quarter group operating income jumped 2...

Richard Hilgert
  • Richard Hilgert

Morningstar | Volkswagen Dieselgate creates an opportunity for long-te...

Uncertainty regarding regulators' intense scrutiny of diesel powertrain passenger vehicles will plague Volkswagen for several more months, and higher spending to launch electrified powertrains and diesel headline risk are pressuring the stock. But with an enviable portfolio of brands, a bevy of new and redesigned models, leading shares in many of the world's markets, and a healthy pile of cash (despite Dieselgate-related outlays), Volkswagen appears able to endure potentially substantial fines a...

Richard Hilgert
  • Richard Hilgert

Volkswagen Dieselgate creates an opportunity for long-term investors w...

No-moat-rated Volkswagen was fined EUR 1.0 billion by a German public prosecutor, including a maximum penalty of EUR 5 million and EUR 995 million disgorgement of economic benefits. The company’s press release referred to the prosecutor issuing an "administrative order" against the company for a breach of "monitoring duties" of the Powertrain Development department in the "context of vehicle tests" (the diesel crisis), resulting in the fine. Because of the nature of the fine, EU regulations pr...

Richard Hilgert
  • Richard Hilgert

Volkswagen Fined EUR 1.0 Billion by German Public Prosecutor; Maintain...

No-moat-rated Volkswagen was fined EUR 1.0 billion by a German public prosecutor, including a maximum penalty of EUR 5 million and EUR 995 million disgorgement of economic benefits. The company’s press release referred to the prosecutor issuing an "administrative order" against the company for a breach of "monitoring duties" of the Powertrain Development department in the "context of vehicle tests" (the diesel crisis), resulting in the fine. Because of the nature of the fine, EU regulations pr...

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