Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>The Q4 2023 earnings by Caterpillar indicate the company has delivered a strong quarter and a solid year, with several record financial milestones.</li><li>This includes record sales and revenues, adjusted profit margin, adjusted profit per share, and Machinery, Energy & Transportation (ME&T) free cash flow.</li><li>These positive results are driven by healthy demand across most end markets for their products and services, displaying robust operational efficiency by the firm.</li></ul>

The Q4 2023 earnings by Caterpillar indicate the company has delivered a strong quarter and a solid year, with several record financial milestones.This includes record sales and revenues, adjusted profit margin, adjusted profit per share, and Machinery, Energy & Transportation (ME&T) free cash flow.These positive results are driven by healthy demand across most end markets for their products and services, displaying robust operational efficiency by the firm.

Caterpillar Inc: Reinvestment into Strategic Initiatives & Services Expansion & Other Major Drivers

<ul><li>Caterpillar managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.</li><li>Sales and revenues surged by 12%, surpassing the previous year's figures.</li><li>Construction Industries in North America experienced a 6% increase in sales to users, driven by robust demand in non-residential and residential construction.</li></ul>

Caterpillar managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.Sales and revenues surged by 12%, surpassing the previous year's figures.Construction Industries in North America experienced a 6% increase in sales to users, driven by robust demand in non-residential and residential construction.

Caterpillar Inc.: Pioneering Sustainable Mining Technologies and Operations! - Major Drivers

<ul><li>Caterpillar managed to exceed analyst expectations in terms of revenue as well as earnings, with sales and revenues soaring by 22%, primarily driven by increased sales volume and price realization.</li><li>This remarkable growth extended across all three primary segments: Construction Industries, Resource Industries, and Energy & Transportation, with sales to users registering a substantial 16% increase year-over-year.</li><li>Energy & Transportation also witnessed a remarkable increase in sales to users across all applications, including oil and gas, power generation, industrial, and transportation.</li></ul>

Caterpillar managed to exceed analyst expectations in terms of revenue as well as earnings, with sales and revenues soaring by 22%, primarily driven by increased sales volume and price realization.This remarkable growth extended across all three primary segments: Construction Industries, Resource Industries, and Energy & Transportation, with sales to users registering a substantial 16% increase year-over-year.Energy & Transportation also witnessed a remarkable increase in sales to users across all applications, including oil and gas, power generation, industrial, and transportation.

Caterpillar Inc.: North America's Construction Boom: How Caterpillar Is Capitalizing on It! - Major Drivers

<ul><li>Caterpillar had a strong start to 2023 with an all-around beat.</li><li>The company’s result was marked by double-digit top-line growth across all segments, higher operating profit margins, and significant adjusted profit per share.</li><li>Caterpillar experienced healthy customer demand across most end markets for its products and services, reflecting the successful execution of its long-term growth strategy.</li></ul>

Caterpillar had a strong start to 2023 with an all-around beat.The company’s result was marked by double-digit top-line growth across all segments, higher operating profit margins, and significant adjusted profit per share.Caterpillar experienced healthy customer demand across most end markets for its products and services, reflecting the successful execution of its long-term growth strategy.

Caterpillar Inc.: Collaboration With Nouveau Monde Graphite & Other Drivers

Quantitative Equity Analyst, DMA

Charlotte van Tiddens, CFA

Quantitative Equity Analyst

Technology-First Company

DMA is a technology-first company that provides an end-to-end SaaS solution to institutional investors. DMA enables regulated entities like asset managers, wealth managers, investment managers and financial advisors to connect their front and back office, break silos and reduce headcount.

Quantitative Analysis

<ul>
<li>Short duration US factor strategies outperformed in September as markets came under pressure (value and dividend yield).</li>
<li>Despite keeping rates unchanged on the 20th of September at 5.5% (upper bound), Fed Chair Powell indicated that rates would be kept higher for longer than initially anticipated.</li>
<li>In this note we explore the <em><strong>relative performance</strong></em> of US factor strategies through different interest rate cycles, to inform timing around factor/style rotation.</li>
</ul>


Short duration US factor strategies outperformed in September as markets came under pressure (value and dividend yield).
Despite keeping rates unchanged on the 20th of September at 5.5% (upper bound), Fed Chair Powell indicated that rates would be kept higher for longer than initially anticipated.
In this note we explore the relative performance of US factor strategies through different interest rate cycles, to inform timing around factor/style rotation.


US Factor Strategies: Value and Dividend Yield Outperform in September, Higher for Longer Narrative

United States

Caterpillar Inc. designs, manufactures and markets construction, mining and forestry machinery. The Company also manufactures engines  and other related parts for its equipment, and offers financing and insurance. Caterpillar distributes its products through a worldwide organization of dealers.

Caterpillar Inc (CAT US)

Caterpillar Inc: Reinvestment into Strategic Initiatives & Services Expansion & Other Major Drivers

The Q4 2023 earnings by Caterpillar indicate the company has delivered a strong quarter and a solid year, with several record financial...

Baptista Research

Caterpillar Inc.: Pioneering Sustainable Mining Technologies and Operations! - Major Drivers

Caterpillar managed to surpass the revenue expectations as well as the earnings expectations of Wall Street. Sales and revenues surged by 12%,...

Baptista Research

Caterpillar Inc.: North America's Construction Boom: How Caterpillar Is Capitalizing on It! - Major Drivers

Caterpillar managed to exceed analyst expectations in terms of revenue as well as earnings, with sales and revenues soaring by 22%, primarily...

Baptista Research

Caterpillar Inc.: Collaboration With Nouveau Monde Graphite & Other Drivers

Caterpillar had a strong start to 2023 with an all-around beat. The company’s result was marked by double-digit top-line growth across all...

Baptista Research

US Factor Strategies: Value and Dividend Yield Outperform in September, Higher for Longer Narrative

US rates and factor strategies: higher for longer likely to drive outperformance of short duration factor strategies, long US value short US growth.

DMA