SAP – SAP SE (HQ: Germany/Industry: Software)
SAP believes true value comes through the strength of its collective offerings. With SAP S/4HANA Cloud at the core, being an enterprise resource planning platform for large businesses. While having the technologies, products, footprint, and experience to combine four essential end-to-end business processes to create not just one intelligent enterprise, but a global ecosystem of intelligent enterprises.

Though SAP’s revenue EPS, and FCF have mostly grown steadily for the last 10-years, the stock has underperformed the S&P500. Even with dividends increasing more than 140%, and averaging 16% ROE and 11% ROIC during the period. To value the business at their current market price the company would need more than a 13% per year growth for the next 10-years.

SEC filing link: https://www.sec.gov/edgar/browse/?CIK=1000184&owner=exclude

CAKE – THE CHEESECAKE FACTORY INCORPORATED (HQ: USA/Industry: Hotels, Restaurants & Leisure)
The Cheesecake Factory Incorporated is a leader in experiential dining. With a culinary forward and relentlessly focused on hospitality. The company currently owns and operates 306 restaurants throughout the United States and Canada, and 29 internationally operating under licensing agreements.

COVID greatly impacted The Cheesecake Factory in 2020, being the only year to have negative EPS and FCF over the last 10-years. But the company had their best revenue in 2021. However, even prior to 2020 the stock has underperformed the S&P500. The stock price is slightly over its intrinsic value, but would also require a 50% to 60% margin of safety.

SEC filing link: https://www.sec.gov/edgar/browse/?CIK=887596&owner=exclude

SNA – SNAP-ON INCORPORATED (HQ: USA/Industry: Machinery)
Snap-on is a leading global innovator, manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions for professional users performing critical tasks. Products and services include hand and power tools, tool storage, diagnostic software, handheld and computer-based diagnostic products, information and management systems, shop equipment and other solutions for vehicle dealerships and repair centers, as well as for customers in industries. Snap-on also derives income from various financing programs designed to facilitate the sales of its products and support its franchise business.

Depending on the time period over the last 10-years, Snap-On has either outperformed or underperformed the S&P500, showing that price matters when investing into a company. Although revenue has only grown 48% over the last 10-years, EPS and FCF have increase 187% and 258% on mostly a consistent basis during the period. Along with a dividend increasing 265%. The stock is currently trading at a price below its margin of safety intrinsic value.

SEC filing link: https://www.sec.gov/edgar/browse/?CIK=91440&owner=exclude

CNK – CINEMARK HOLDINGS, INC. (HQ: USA/Industry: Entertainment)
Cinemark Holdings and its subsidiaries operate in the motion picture exhibition industry, with theatres in the United States and Latin America. Being a leader and one of the most geographically diverse operators in the motion picture exhibition industry. Operating 522 theatres and 5,868 screens, with its significant and diverse presence in the U.S. and Latin America has made the company an important distribution channel for movie studios and other content providers.

Cinemark was significantly impacted by COVID, but even prior to 2020 the stock had underperformed the S&P500. Since 2020 the company’s debt to equity has increase more than 5x. To value the business at their current market price the company would need more than a 9% per year growth for the next 10-years.

SEC filing link: https://www.sec.gov/edgar/browse/?CIK=1385280&owner=exclude

RLGY – REALOGY HOLDINGS CORP. (HQ: USA/Industry: Real Estate Management & Development)
Realogy Holdings is a leading and most integrated provider of U.S. residential real estate services encompassing franchise, brokerage, relocation, and title and settlement businesses as well as a mortgage joint venture. The company’s diverse brand portfolio includes some of the most recognized names in real estate: Better Homes and Gardens, CENTURY 21, Coldwell Banker, Corcoran, ERA, and Sotheby’s International Realty.  Using innovative technology, data and marketing products, high-quality lead generation programs, and best-in-class learning and support services. For most time periods over the last 10-years

Realogy has underperformed the S&P500, though when purchased at the right price the stock has outperformed the index. The company has had multiple years of declining revenue, EPS and FCF during this period. Along with years of negative EPS and FCF. With the stock currently priced just below its margin of safety intrinsic value.

SEC filing link: https://www.sec.gov/edgar/browse/?CIK=1398987&owner=exclude