Fayez Sarofim & Co's Top 5 Buys of the 1st Quarter

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May 19, 2022
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Fayez Sarofim & Co recently filed their 13F report for the first quarter of 2022, which ended on 2022-03-31.

The 13F report details which stocks were in a guru’s equity portfolio at the end of the quarter, though investors should note that these filings are limited in scope, containing only a snapshot of long positions in U.S.-listed stocks and American depository receipts as of the quarter’s end. They are not required to include international holdings, short positions or other types of investments. Still, even this limited filing can provide valuable information.

Fayez Sarofim & Co. is a private investment manager that is wholly owned by its employees. The company was founded in 1958 in Houston and is still headquartered there. Fayez Sarofim & Co. believes that “long-term stock price appreciation is based on long-term earnings growth” and that large companies can “produce superior growth and market leadership over long periods of time.” The company’s primary clients are individuals, which alone make up over two thirds of its total client base, although it also provides its services to investment companies, high net worth individuals, which makes up the most of its total assets under management and each makes up a quarter of its assets held, pension and profit sharing plans, charities, state and municipal entities, insurance companies, and corporations and other businesses. Fayez Sarofim & Co. conducts its research in house, utilizing a fundamental analysis with both bottom up and top down stock picking approaches to make its investment decisions. The company’s largest investment allocation is in the consumer non-cyclical sector, which along makes up over a quarter of its total assets allocated, and also invests in the energy, financial, services, health care, technology, and utilities sectors, among others, in order of decreasing amount allocated. Some of Fayez Sarofim & Co.’s top holdings include Philip Morris International, Exxon Mobil, Coca Cola, Altria Group, Apple, and Price T. Rowe. The company currently has over $30 billion in total assets under management that is spread across over 5,600 accounts, averaging to over $5.3 billion each, with almost all of these accounts being discretionary accounts. Although its total accounts managed has decreased dramatically from its 15,000 amount five years ago, its total assets under management has almost doubled since its $17 billion amount back in 2010. Fayez Sarofim & Co. has 56 employees with 22 investment advisor representatives. The company offers four investment strategies: Large Capitalization Equity, Global Equity, Core Fixed Income, and Balanced Portfolio, and services as a subadvisor to Dreyfus mutual funds including the Appreciation Fund and Worldwide Growth Fund.

As of the latest 13F report, the guru’s equity portfolio contained 321 stocks valued at a total of $31,607,000,000. The top holdings were AAPL(9.17%), MSFT(7.14%), and TROW(4.35%).

According to GuruFocus data, these were Fayez Sarofim & Co’s top five trades of the quarter.

Sabine Royalty Trust


During the quarter, Fayez Sarofim & Co bought 736,843 shares of NYSE:SBR for a total holding of 939,690. The trade had a 0.14% impact on the equity portfolio. During the quarter, the stock traded for an average price of $61.

On 05/19/2022, Sabine Royalty Trust traded for a price of $67 per share and a market cap of $976,818,000. The stock has returned 101.98% over the past year.

GuruFocus gives the company a financial strength rating of 10 out of 10 and a profitability rating of 9 out of 10.

In terms of valuation, Sabine Royalty Trust has a price-earnings ratio of 13.61, a price-book ratio of 75.98, a price-earnings-to-growth (PEG) ratio of 1.31, a EV-to-Ebitda ratio of 13.36 and a price-sales ratio of 13.01.

The price-to-GF Value ratio is 1.08, earning the stock a GF Value rank of 5.

Hess Corp


During the quarter, Fayez Sarofim & Co bought 2,809,989 shares of NYSE:HES for a total holding of 3,422,959. The trade had a 0.95% impact on the equity portfolio. During the quarter, the stock traded for an average price of $94.78.

On 05/19/2022, Hess Corp traded for a price of $114.19 per share and a market cap of $35,543,071,000. The stock has returned 38.27% over the past year.

GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 6 out of 10.

In terms of valuation, Hess Corp has a price-earnings ratio of 49.23, a price-book ratio of 5.63, a EV-to-Ebitda ratio of 11.57 and a price-sales ratio of 4.48.

The price-to-GF Value ratio is 1.36, earning the stock a GF Value rank of 1.

Chevron Corp


During the quarter, Fayez Sarofim & Co bought 1,120,832 shares of NYSE:CVX for a total holding of 6,170,123. The trade had a 0.58% impact on the equity portfolio. During the quarter, the stock traded for an average price of $143.03.

On 05/19/2022, Chevron Corp traded for a price of $168.06 per share and a market cap of $330,206,551,000. The stock has returned 61.96% over the past year.

GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 7 out of 10.

In terms of valuation, Chevron Corp has a price-earnings ratio of 15.78, a price-book ratio of 2.26, a price-earnings-to-growth (PEG) ratio of 3.36, a EV-to-Ebitda ratio of 7.45 and a price-sales ratio of 1.84.

The price-to-GF Value ratio is 1.14, earning the stock a GF Value rank of 3.

Exxon Mobil Corp


During the quarter, Fayez Sarofim & Co bought 1,921,861 shares of NYSE:XOM for a total holding of 8,982,111. The trade had a 0.5% impact on the equity portfolio. During the quarter, the stock traded for an average price of $77.63.

On 05/19/2022, Exxon Mobil Corp traded for a price of $90.65 per share and a market cap of $383,057,323,000. The stock has returned 53.75% over the past year.

GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 7 out of 10.

In terms of valuation, Exxon Mobil Corp has a price-earnings ratio of 15.03, a price-book ratio of 2.25, a price-earnings-to-growth (PEG) ratio of 75.15, a EV-to-Ebitda ratio of 6.81 and a price-sales ratio of 1.27.

The price-to-GF Value ratio is 1.11, earning the stock a GF Value rank of 5.

T. Rowe Price Group Inc


During the quarter, Fayez Sarofim & Co bought 1,011,195 shares of NAS:TROW for a total holding of 9,087,063. The trade had a 0.48% impact on the equity portfolio. During the quarter, the stock traded for an average price of $154.55.

On 05/19/2022, T. Rowe Price Group Inc traded for a price of $121.31 per share and a market cap of $27,573,353,000. The stock has returned -30.48% over the past year.

GuruFocus gives the company a financial strength rating of 8 out of 10 and a profitability rating of 10 out of 10.

In terms of valuation, T. Rowe Price Group Inc has a price-earnings ratio of 9.84, a price-book ratio of 3.03, a price-earnings-to-growth (PEG) ratio of 0.63, a EV-to-Ebitda ratio of 6.60 and a price-sales ratio of 3.60.

The price-to-GF Value ratio is 0.67, earning the stock a GF Value rank of 8.


Please note, the numbers and facts quoted are as of the writing of this article and may not factor in the latest trading data or company announcements.

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