STWD – STARWOOD PROPERTY TRUST, INC. (HQ: USA/Industry: Mortgage Real Estate Investment Trusts (REITs))
Starwood Property Trust is focused primarily on originating, acquiring, financing and managing mortgage loans and other real estate investments in the US, Europe and Australia. As market conditions change over time, the company may adjust its strategy to take advantage of changes in interest rates and credit spreads as well as economic and credit conditions. With four reportable business segments: real estate commercial and residential lending, infrastructure lending, real estate property, and real estate investing & services.

Although the company grew revenue over 200% during the last 10-years, it did have three years of both declining sales and negative FCF. Along with declining EPS and BV, from an increase in share count of 160%. To value the business at their current market price the company would need an 11% per year growth for the next 10-years.

SEC filing link: https://www.sec.gov/edgar/browse/?CIK=1465128&owner=exclude

DSKE – DASEKE, INC. (HQ: USA/Industry: Road & Rail)
Daseke is a North American transportation solutions specialist dedicated to servicing challenging industrial end-markets through experienced people, a fleet of more than 4,500 tractors and 11,000 flatbed and specialized trailers, and has operations throughout the United States, Canada and Mexico. The Company also provides logistical planning and warehousing services to customers.

The company had some inconsistency as it grew revenue more than 125% since 2015, while its FCF also had inconsistent growth. Along with this inconsistence growth, the company did have declining EPS and BV, from an increase in share count of 210% during the same period. To value the business at their current market price the company would need more than a 5% per year growth for the next 10-years.

SEC filing link: https://www.sec.gov/edgar/browse/?CIK=1642453&owner=exclude

AMG – AFFILIATED MANAGERS GROUP, INC. (HQ: USA/Industry: Capital Markets)
Affiliated Managers Group is a leading partner to independent active investment management firms globally. With a strategy to generate long-term value by investing in a diverse array of high-quality partner-owned investment firms through a proven partnership approach, and allocating resources across a unique opportunity set to the areas of highest growth and return. Focusing on investing in areas of secular growth and client demand, including in private markets, liquid alternatives, Asia, wealth management, and environmental, social, and governance (ESG).

Over the last 10-years revenue growth increased modestly at just over 30%, with several years of declining sales. While net income and EPS grew well over 200%, but this growth was not consistent. Although FCF roughly doubled, there’s not a clear sign that consistent future growth would be expected. There has been a 17% reduction in share count, which help improved EPS, but with inconsistent net income the growth was not steady. The market is pricing the stock below a margin of safety intrinsic value with a recent decline in the price over the past 4 months.

SEC filing link: https://www.sec.gov/edgar/browse/?CIK=1004434&owner=exclude

BCPC – BALCHEM CORPORATION (HQ: USA/Industry: Chemicals)
Balchem is in the businesses that develop, manufacture, distribute and market specialty performance ingredients and products for the nutritional, food, pharmaceutical, animal health, medical device sterilization, plant nutrition and industrial markets.

For the last 10-yearrs the company seen consistent revenue growth up more than 150%. This includes pretty steady net income, EPS, BV, and FCF growth over the same period. Along with a dividend that has also increased year-over-year. To value the business at their current market price it would need more than a 20% per year growth for the next 10-years.

SEC filing link: https://www.sec.gov/edgar/browse/?CIK=9326&owner=exclude

HBI – HANESBRANDS INC. (HQ: USA/Industry: Textiles, Apparel & Luxury Goods)
Hanesbrands is a leading marketer of everyday basic innerwear and activewear apparel in the Americas, Australasia, Europe and Asia under some of the world’s strongest apparel brands, including Hanes, Champion, Bonds, Bali, Maidenform, Playtex, Bras N Things, JMS/Just My Size, Alternative, Berlei, Wonderbra, Gear for Sports and Comfortwash.

The company had stable but a modest 50% growth over the last 10-years, with one year of declining sales in 2020 due to COVID that also resulted in the only year having negative net income. Appearing to have continued in 2021 as sales, net income, EPS and FCF have not returned to their pre-COVID level. Bur prior to COVID these data points were growing, though not on a steady basis. The market price is approaching a fair value, but a greater margin of safety might need to be considered if the business does not return to pre-COVID levels.

SEC filing link: https://www.sec.gov/edgar/browse/?CIK=1359841&owner=exclude