Gotham Asset Management’s Joel Greenblatt (Trades, Portfolio) purchased 219 new positions in the third quarter. His top three new holdings are Danaher Corp. (DHR, Financial), WestRock Co. (WRK, Financial) and Kimberly-Clark (KMB, Financial).
The guru bought 596,095 shares in Danaher for an average price of $79.95 per share. The transaction had an impact of 0.6% on his portfolio.
Danaher manufactures and markets professional, medical, industrial and commercial products. It has a market cap of $55.1 billion with an enterprise value of $62.5 billion. It has a price-earnings (P/E) ratio of 22.1, a forward P/E of 19.7, a price-book (P/B) ratio of 2.4 and a price-sales (P/S) ratio of 2.2.
GuruFocus ranked the company’s financial strength 6 of 10. The high Piotroski F-Score and Altman Z-Score suggest the company is in healthy financial condition. The company is creating value as it grows because the return on invested capital (ROIC) outperforms its weighted average cost of capital (WACC). The cash-debt ratio of 0.12 is below the industry median of 1.13.
GuruFocus ranked Danaher’s profitability and growth 9 of 10. It has an operating margin of 17.7% and a net margin of 9.7%. The return on equity (ROE) and return on assets (ROA) outperform 66% of other companies in the global diversified industrials industry. The return on capital (ROC) outperforms 98% of competitors.
Dodge & Cox is the company’s largest shareholder among the gurus with 0.8% of outstanding shares, which is 0.4% of its total assets managed.
The stock was trading for $79.63 on Tuesday.
Greenblatt purchased 624,351 shares in WestRock for an average price of $44.65 per share. The transaction had an impact of 0.4% on the portfolio.
WestRock provides paper and packaging solutions to consumer and corrugated markets. The company has a market cap of $12.5 billion with an enterprise value of $18.04 billion. It has a forward P/E of 15.2, a P/B of 1.3 and a P/S of 0.8.
GuruFocus ranked the company’s profitability 4 of 10. The low Piotroski F-Score and Altman Z-Score suggest the company is under some financial stress. The ROIC underperforms the WACC so value is being destroyed as the company grows. The cash-debt ratio of 0.06 is below the industry median of 0.5.
GuruFocus ranked WestRock’s profitability and growth 5 of 10. Its operating margin and net margin are both negative as are its returns. The ROE and ROA underperform 87% and 84% of other companies in the global packaging and containers industry. The ROC underperforms 82% of competitors.
Steven Cohen (Trades, Portfolio) is the largest shareholder of WestRock among the gurus. He holds 0.34% of outstanding shares, which is 0.3% of his total assets managed.
The stock was trading at $49.65 on Tuesday.
The investor purchased 192,243 shares in Kimberly-Clark for an average price of $129.34 per share. The transaction had an impact of 0.3% on the portfolio.
The manufacturer of personal and health care products has a market cap of $40.8 billion with an enterprise value of $47.8 billion. It has a P/E of 20.7, a forward P/E of 17.7, a P/B of 136.3 and a P/S of 2.3.
GuruFocus ranked the company’s financial strength 5 of 10. The high Piotroski F-Score and Altman Z-Score indicate the company is in healthy financial condition. The company is creating value since its ROIC outperforms its WACC. The cash-debt ratio of 0.12 is below the industry median of 0.6.
GuruFocus ranked the company’s profitability and growth 7 of 10. It has an operating margin of 17.1% and a net margin of 10.9%. The ROE and ROA outperform 100% and 89% of other companies in the global household and personal products industry. The ROC outperforms 86% of competitors.
Diamond Hill Capital (Trades, Portfolio) is Kimberly-Clark’s largest investor among the gurus. It holds 0.5% of outstanding shares, which is 1.5% of its total assets managed.
The stock was trading at $113.87 on Tuesday.
To view all of Greenblatt’s holdings, visit his portfolio.
Disclosure: I do not own stock in any companies mentioned in the article.
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