Established in 2005, Wintergreen is an independent global money manager. The manager is David J. Winters, who follows a global approach to investing that combines the following key elements: Activism and Arbitrage, Cash and Convertibles, Financings. All client assets are managed on a discretionary basis. Winter’s portfolio is composed of 12 stocks and the total value is $606 million with 2% Q/Q turnover.
These are the stocks with highest-growing EBITDA.
Union Pacific Corp (UNP)
Union Pacific Corp was incorporated in Utah in 1969. It is a rail transporting company.
The stock has a business predictability of 4.5 stars and is currently trading at 17.70 of P/E +4.52% from its 52 weeks low and -19.27% from its 52 weeks high. Over the past 12 months, the price rose by 1%.
The DCF model, gives a fair value of $167.11 that put the stock as undervalued and with a margin of safety of 40% at current prices. By contrast, the Peter Lynch value gives a price of $87.2, giving the stock an “overpriced” label.
UNP has a ROA of 10.05%, a ROE of 24.61% and a ROC of 19.78%. All these ratios are hitting the all-time-high of UNP’s history.
Over the last 5 years, revenue grew by 13.10%, EBITDA by 18.40% and free cash flow by 32.30%.
David Winters (Trades, Portfolio) holds 291,762 shares (0.03% of outstanding shares of the company), or 5.21% of total assets of his portfolio.
Franklin Resources Inc (BEN)
The company together with its subsidiaries operates as an investment management company. It offers investment services and provides investment management and related services.
This year the company will release an yield of 1.19%. BEN’s yield is growing at a rate of 15.40% (over the last 3 years) and has a payout ratio of 14%.
The stock has a business predictability of 2.5 stars and is currently trading at a P/E of 14.3. During the last 12 months the price dropped by 10% and is now +2.46% from its 52 weeks low and -15.31% from its 52 weeks high.
The DCF model, gives a fair value of $64.36 that put the stock as Undervalued and with a margin of safety of 22% at current prices. The Peter Lynch earnings line gives almost the same fair price ($56.8).
BEN has a ROA of 14.92% that is ranked higher than 85% of the 1051 companies in the Global Asset Management industry and a ROC of 668.84 % that is at its all-time high if compared to the company’s history.
Over the last 5 years, revenue grew by 18.20%, EBITDA by 20.90% and free cash flow by 25.3%.
David Winters (Trades, Portfolio) holds 1,993,067 shares (0.32% of outstanding shares of the company), or 16.87% of total assets of his portfolio.
Lorillard Inc (LO)
The Company is engaged in the manufacture and sale of cigarettes. Its principal products are marketed under the brand names of Newport, Kent, True, Maverick and Old Gold with most of its sales in the United States.
The stock has a business predictability of just 1 star and is currently trading at 21.60 P/E +24.13% from its 52 weeks low and -2.22% from its 52 weeks high. Over the past 12 months, the price rose by 16%.
The DCF model, gives a fair value of $50.94 that put the stock as overpriced by 40% at current prices. The Peter Lynch value gives almost the same fair price ($49.4).
LO has a ROA of 33.56 % that is ranked higher than 83% of the 30 companies in the Global Tobacco industry and a ROC of 680.99% that is ranked higher than 97% of the company’s competitors.
Over the last 5 years, revenue grew by 12.70%, EBITDA by 13.30% and free cash flow by 11.30%. Over the last 12 months the trend is confirmed and all the ratios are confirming the same growth rate
David Winters (Trades, Portfolio) is currently holding 279,885 shares (0.08% of shares outstanding, or 3.02% of total assets of his portfolio).
CSX Corp (CSX)
The Company provides rail-based transportation services including traditional rail service and the transport of intermodal containers and trailers.
On May 21, CSX entered into a new $1 billion five-year senior unsecured revolving credit agreement (the “Credit Agreement”) which replaces the Prior Credit Agreement
The stock has a business predictability of 4 stars and is currently trading at 19.30 of P/E. The price rose by 14% over the last 12 months and is now +18.95% from its 52 weeks low and -8.98% from its 52 weeks high.
The DCF model, gives a fair value of $46.53 that put the stock as undervalued and with a margin of safety of 26% at current prices. By contrast the Peter Lynch earnings line put the stock as overpriced with a fair value of $29.3.
CSX has a ROA of 6.16% that is ranked higher than 75% of the 666 companies in the Global Railroads industry and a ROC of 13.32% that is ranked higher than 64% of its competitors. ROA at these levels is hitting CSX’s all-time highs.
Over the last 5 years, revenue grew by 12.30%, EBITDA by 13.30% and free cash flow by 6.00%. These ratios are confirmed even if we take a look at the last 10 years, giving the company a very trustable growth outlook for the future.
David Winters (Trades, Portfolio) holds 292,455 shares of CSX (0.03% of shares outstanding, or 1.6% of total assets of his portfolio).
Norfolk Southern Corp (NSC)
The Company is engaged in the rail transportation of raw materials, intermediate products, and finished goods. It also transports overseas freight through several Atlantic and Gulf Coast ports.
The firm currently has a “neutral” rating on the railroad operator’s stock and analysts at Robert W. Baird cut their price objective on shares of NSC from $113.00 to $104.00 in a research note issued to investors on Tuesday.
The stock has a business predictability of 2.5 stars and is currently trading at 16.70 of P/E. The price dropped by 10% over the last 12 months and is now +1.82% from its 52 weeks low and -22.34% from its 52 weeks high.
The DCF model, gives a fair value of $87.53 that put the stock as few overpriced by 4% at current prices. The Peter Lynch earnings line gives almost the same fair value ($95.1).
NSC has a ROA of 5.91% that is ranked higher than 74% of the 666 companies
in the Global Railroads industry and a ROE of 16.03% that at these levels is performing near NSC’s all time highs of 18.67%.
Over the last 5 years, revenue grew by 13.70% (7% on a 10 years basis), EBITDA by 15.20% (8% on a 10 years basis) and free cash flow by 8.40% (3.50% on a 10 years basis). Comparing these rates with the last 10 years we see that growth rates are rising year over year, and this trend is confirmed even during the last 12 months.
David Winters (Trades, Portfolio) holds 19,199 shares of NSC (0.01% of shares outstanding, or 0.33% of total assets of his portfolio).
Canadian Natural Resources Ltd (CNQ)
CNQ is a Canadian based senior independent energy company engaged in the acquisition, exploration, development, production, marketing and sale of crude oil, NGLs and natural gas.
The stock has a business predictability of 4 stars and is currently trading at 13.90 of P/E. The price dropped by 35% over the last 12 months and is now +8.69% from its 52 weeks low and -39.12% from its 52 weeks high.
The DCF model, gives a fair value of $30.45 that put the stock as undervalued by just 7% at current prices. The Peter Lynch value gives a higher fair value so a higher margin of safety, giving a fair value of $43.0.
CNQ has a ROA of 5.23% that is ranked higher than 79% of the 453 companies
in the Global Oil & Gas E&P industry and a low ROC of 7.26%.
Over the last 5 years, revenue grew by 12.40%, EBITDA grew by 11.30% and book value grew by 8.60%.
David Winters (Trades, Portfolio) holds 3,197,951 shares of CNQ (0.29% of shares outstanding, or 16.17% of total assets of his portfolio).
