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Mark Hillman’s Top Five Holdings

February 07, 2014 | About:
Monica Wolfe

Monica Wolfe

133 followers

Mark Hillman is the President of Hillman Capital Management, the fund he created in 1998. Over the third quarter Hillman purchased three new holdings, bringing his total portfolio to 38 stocks valued at $67 million.

According to the guru’s investing philosophy, he invests in companies which have quantitative competitive advantages and have temporarily fallen out of favor for reasons that are considered non-recurring or short-term. Hillman looks at factors such as cash flow, dividends, sales, earnings, book value and projected growth rate.

The following five companies represent Mark Hillman’s top five portfolio holdings.

Raytheon Company (RTN)

Mark Hillman (Trades, Portfolio)’s largest holding goes to Raytheon Company where he maintains 36,965 shares of the company’s stock. His position in the company represents 5% of his total portfolio as well as 0.01% of the company’s shares outstanding.

During the fourth quarter the guru upped his stake 32.54% by purchasing 9,076 shares. He bought these shares in the fourth quarter price range of $73.97 to $91.04 with an estimated average quarterly price of $83.47 per share. Since then the price per share is up about 12.1%

Mark Hillman (Trades, Portfolio)’s historical holding history:

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Raytheon Company provides technology-driven solutions that provide integrated mission systems for the critical defense and non-defense needs of its customers. The company's integrated businesses assure mission success with a broad range of products and services in government electronics, space, information technology, technical services, business, aviation and special mission aircraft.

Raytheon Company’s historical revenue and net income:

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The analysis on Raytheon reports that the company’s operating margin is expanding, its revenue has slowed down and its dividend yield is close to a 5-year low. The analysis also notes that the company’s price, P/B ratio and P/S ratio are trading near 10-year highs.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Raytheon has a market cap of $30.24 billion. Its shares are currently trading at around $94.65 with a P/E ratio of 16.30, a P/S ratio of 1.30 and a P/B ratio of 3.50. The company had an annual average earnings growth of 12.70% over the past ten years.

GuruFocus rated Raytheon the business predictability rank of 3.5-star.

American Express (AXP)

Hillman’s second largest position is in American Express where he holds on to 36,344 shares of the company’s stock. Hillman’s position makes up for 5% of his total portfolio.

During the third quarter Hillman made a slight decrease of his holdings by cutting -0.45%. The guru sold 164 shares in the price range of $72.22 to $78.33, with an estimated average quarterly price of $75.23. Since then the price per share is up approximately 5.7%.

Hillman has held on to American Express since 2008Q4, and since then he has seen average gains of 93% on shares bought. Hillman’s historical holding history of American Express:

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American Express together with its subsidiaries is a global service company that provides customers with access to products, insights and experiences that enrich lives and build business success. Its principal products and services are charge and credit payment card products.

American Express’s historical revenue and net income:

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The analysis on American Express reports that the company’s dividend yield is near a 5-year low, its price is sitting near a 10-year high and its operating margin is expanding. It also reports that American Express has shown predictable revenue and earnings growth.

The Peter Lynch Chart suggests that the company is currently overvalued:

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American Express has a market cap $92.9 9 billion. Its shares are currently trading at around $86.80 with a P/E ratio of 20.50, a P/S ratio of 2.90 and a P/B ratio of 4.50. The company had an annual average earnings growth of 9.40% over the past ten years.

GuruFocus rated American Express the business predictability rank of 2-star.

Bank of America (BAC)

Hillman’s third largest position is in Bank of America where the guru holds on to 203,138 shares of the company’s stock. His position represents 4.7% of his total assets managed.

During the third quarter Hillman cut his holdings in Bank of America by -0.47%. The guru sold 952 shares in the price range of $13.69 to $15.88, with an estimated average quarterly price of $14.83. Since then the price per share has increased approximately 12.5%.

Mark Hillman’s historical holding history of Bank of America:

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Bank of America, through its subsidiaries, provides a diversified range of banking and non-banking financial services and products through five business segments: Deposits, Card Services, Consumer Real Estate Services, Global Commercial Banking, Global Banking & Markets and Investment Management.

Bank of America’s historical revenue and net income:

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The analysis on Bank of America reports that the company’s dividend yield is near a 10-year low and that its revenue has been in decline over the past five years.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Bank of America has a market cap of $178.02 billion. Its shares are currently trading at around $16.69 with a P/E ratio of 25.50, a P/S ratio of 2.20 and a P/B ratio of 0.80.

Goldman Sachs (GS)

Hillman’s fourth largest holding is in Goldman Sachs where he maintains 16,191 shares of the company’s stock. His position makes up for 4.3% of his total portfolio. Over the past quarter he reduced his holdings a slight -0.25% by selling a total of 40 shares of Goldman stock. He sold these shares near the average quarterly price of $164.94 per share. Since then the price per share has dropped roughly -2.3%.

Mark Hillman (Trades, Portfolio)’s historical holding history of Goldman Sachs:

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Goldman Sachs is a bank holding company and a financial holding company regulated by the Board of Governors of the Federal Reserve System. It is global investment banking, securities and investment management firm that provides a range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals.

Goldman Sachs’ historical revenue and net income:

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The analysis on Goldman Sachs reports that the company’s price is near a 3-year high, its revenue has been in decline over the past three years and its operating margin is expanding.

The Peter Lynch Chart suggests that the company is currently undervalued:

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Goldman Sachs has a market cap of $73.02 billion. Its shares are currently trading at around $161.10 with a P/E ratio of 9.90, a P/S ratio of 2.40 and a P/B ratio of 3.50. The dividend yield of the company’s stocks is currently at 1.30%.

Apple (AAPL)

Mark Hillman’s fifth largest holding is in Apple where the guru maintains 5,140 shares of the company’s stock. His position in Apple makes up for 4.3% of his total portfolio.

Hillman reduced his position in Apple by a very minor -0.14% over the duration of the fourth quarter. The guru sold a very miniscule 7 shares of his stake in the company for an estimated average quarterly price of $528.97 per share. Since then the price per share has dropped approximately -3.1%.

Hillman’s historical holding history:

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Apple designs, manufactures, and markets personal computers, mobile communication devices, and portable digital music and video players and sell a variety of related software, services, peripherals, and networking solutions.

Apple’s historical revenue and net income:

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The analysis on Apple reports that the company’s revenue has slowed over the past year, its asset growth is notably faster than its revenue growth and its operating margin is expanding.

The Peter Lynch Chart suggests that the company is currently undervalued:

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Apple has a market cap of $457.15 billion. Its shares are currently trading at around $512.51 with a P/E ratio of 12.90, a P/S ratio of 2.71 and a P/B ratio of 3.50. The company currently holds a dividend yield of 2.38% and has seen an annual average earnings growth of 60% over the past ten years.

GuruFocus rated Apple the business predictability rank of 4.5-star.

Check out Mark Hillman’s complete fourth quarter portfolio here.

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