In today’s briefing:
- StubWorld: On Valuing Toyota Industries (6201)’s Stub Ops
- Starz RemainCo Deep Dive
- Procter & Gamble (P&G) Looking To Turbocharge Retail Reach Through Channel Diversification But Will It Work?
- Whirlpool Corporation: Will The North American Market Dynamics Reflect Its Capability To Adapt To & Capitalize On Market Changes?
- Comcast: Will The Management’s Focus on Wireless Expansion and Converged Offerings Help Continue Its Market-Beating Run?
- Strategic Reviews, Company Sales, and Litigation: Analyzing Active Portfolio Ideas
- DoorDash Makes a Bold $3.6 Billion Move: Is Deliveroo the Missing Piece for Global Domination?
- Kayou Pre-IPO: Financials and Other Metrics Outputs
- Meritage Homes: Partnerships & Realtor Engagement to Enhance Market Reach & Sales Effectiveness!
- PepsiCo: Can Its New Innovation-Driven Playbook Rewrite the Rules of Snack & Beverage Success?
StubWorld: On Valuing Toyota Industries (6201)’s Stub Ops
- Yes, I agree with Travis Lundy that the ¥6tn headline price tag for Toyota Industries (6201 JP) backs out a ~6x forward EBITDA for the unlisted stub ops.
- Preceding my comments on the Toyota Group are the current setup/unwind tables for Asia-Pacific Holdcos.
- These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.
Starz RemainCo Deep Dive
Lions Gate Entertainment will spin off its 87.2% stake in its studio business (Lionsgate Studios, ticker “LION”) from its Starz media networks division, creating two independent public companies, on May 6, 2025.
The RemainCo will be named Starz and trade under the ticker STRZ.
- Starz is a premium subscription video service that operates both a traditional premium cable channel and a modern streaming platform (OTT).
Procter & Gamble (P&G) Looking To Turbocharge Retail Reach Through Channel Diversification But Will It Work?
- Procter & Gamble’s recent earnings results present a mixed picture of achievements and challenges.
- The company’s organic sales for the third quarter grew by 1%, which indicates modest growth.
- This increase was broadly underpinned by pricing strategies that added one percentage point to organic sales growth, while product volume and mix remained consistent with the prior year.
Whirlpool Corporation: Will The North American Market Dynamics Reflect Its Capability To Adapt To & Capitalize On Market Changes?
- Whirlpool Corporation has demonstrated a mixed financial performance in its latest earnings report, reflecting strategic advantages and challenges in the current macroeconomic environment.
- Organic growth of 2% marked a modest improvement, driven largely by strong performance in its Smart Design Asia Global and Major Domestic Appliance Asia sectors.
- The company achieved an EBIT margin of nearly 6%, reflecting successful pricing strategies and cost reductions, which helped weather macroeconomic headwinds.
Comcast: Will The Management’s Focus on Wireless Expansion and Converged Offerings Help Continue Its Market-Beating Run?
- Comcast Corporation’s latest earnings offered insights into both the opportunities and challenges the company faces in various business segments.
- On the positive side, Comcast highlighted robust performance in several growth areas, particularly in residential broadband, wireless, and theme parks.
- The strategic shift towards these growth segments is a central part of the company’s business model.
Strategic Reviews, Company Sales, and Litigation: Analyzing Active Portfolio Ideas
- Lifeway Foods is likely to be sold to Danone, with a potential 14%+ upside, following board changes.
- Sage Therapeutics rejected Biogen’s offer, initiating a strategic review, indicating potential for a higher acquisition premium.
- Liquidia’s patent lawsuit win enables drug commercialization, expected to gain market share and significantly increase valuation.
DoorDash Makes a Bold $3.6 Billion Move: Is Deliveroo the Missing Piece for Global Domination?
- DoorDash has been making significant headlines with its proposed $3.6 billion acquisition offer for UK-based Deliveroo, signaling its continued ambition to expand beyond the U.S. market.
- The deal, offering Deliveroo shareholders £1.80 ($2.40) per share, would value Deliveroo at approximately GBP2.7 billion, or around $3.6 billion.
- Deliveroo’s board has indicated that it would be “minded to recommend” the offer if a firm bid is made under those terms.
Kayou Pre-IPO: Financials and Other Metrics Outputs
- Kayou Inc., a founder led IP-themed trading card company, plans to go public in Hong Kong. The company’s financial profile and profitability are unique among its mid-cap peers.
- The company reported 2024 revenue of RMB10,057m, up 278% y/y, driven by an increase in sales of trading cards, corresponding to an increase in their sales volume.
- Kayou Inc. appears to have a decent runway for growth. Companies with both “elite” gross profit margins and higher revenue growth would tend to trade at higher multiples.
Meritage Homes: Partnerships & Realtor Engagement to Enhance Market Reach & Sales Effectiveness!
- Meritage Homes showed a resilient performance in the first quarter of 2025, balancing the challenging macroeconomic landscape with strategic operational adjustments.
- Despite encountering a slower-than-expected start to the year, the company managed to achieve its second-highest first-quarter orders and closings in its history, reflecting its adaptability and strategic pivot towards a 60-day closing-ready inventory.
- The company sold nearly 3,900 homes in Q1, achieving a 22% home closing gross margin and $1.3 billion in home closing revenue.
PepsiCo: Can Its New Innovation-Driven Playbook Rewrite the Rules of Snack & Beverage Success?
- PepsiCo’s recent earnings highlighted several critical elements investors should consider, providing an insightful overview of both the opportunities and challenges facing the company.
- On the positive side, the company’s international operations are clearly a growth engine, with markets outside the U.S. continuing to show robust performance.
- The international segment recorded substantial growth in the quarter despite macroeconomic uncertainties in some regions like China and Mexico.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
