SLND (Southland Holdings) Predictability Rank

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What is Southland Holdings Predictability Rank?

Not Rated

Warren Buffett said many times that the companies he likes are:

1. Simple businesses that he understands
2. that have predictable and proven earnings and
3. with economic moat
4. those can be bought at a reasonable price.

It is hard to quantify "simple businesses that he (Buffett) understands", so we will focus on the other three characteristics instead. In GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank, we will show that the businesses that have predictable and proven earnings are usually also simple businesses that an average person could understand.

GuruFocus conducted a back test study of Warren Buffett's strategy of "buying good companies at fair prices" for the years from 1998-2008.

Southland Holdings Predictability Rank Calculation

In our database there are 2403 stocks that have been traded from Jan. 2, 1998 to Aug. 31, 2008. We have the complete 10-year financial data and trading prices of these companies for this period. We rank the predictability of these companies based on the consistency of their revenue per share and EBITDA (earning before interest, tax, depreciation and amortization) per share over the past ten fiscal years, and study the correlation between the stock performances and the predictability of the business.

Our study may be subject to these biases and assumptions:

Dividend yields are not counted for investment returns
Effects of price changes due to spin-offs may not be fully adjusted
Study is subjected to survivorship bias due to de-listing, bankruptcy, LBO, M&A, etc.

The correlation between business predictability and investment returns of a company is showed below.

Correlation Between Business Predictability and Investment Returns

	Predictables	Non-Predictable	All stocks
Total Number of stocks	570	1833	2403
Total Lost Money	61	830	891
Total Lost More Than 50%	18	412	430
Total Lost More Than 90%	4	86	90
Average Gain	260.6%	100.0%	138.1%
Median Gain	150.0%	13.0%	39.0%
Maximum Gain	2852.0%	11483.0%	11483.0%
Maximum Loss	-100.0%	-100.0%	-100.0%
Annualized Average Gain	12.7%	6.7%	8.4%
Annualized Median Gain	8.9%	1.1%	3.1%

For the 570 predictable companies, we have seen strong correlation between the predictability of businesses and the stock performances over the past 10 years, regardless of the valuation of business at 1998. Accordingly, we have ranked the business predictability from 5-star to 1-star, as shown in this table.

Predictability Rank	5-Star	4.5-Star	4-Star	3.5-Star	3-Star	2.5-Star	2-Star	1-Star (non-predictable)	Average among all
% Out of All 2403 Stocks	3.3%	2.9%	3.7%	3.3%	3.3%	3.7%	3.3%	76.3%	100%
% that are in Loss (10y)	3%	10%	8%	9%	11%	18%	16%	45%	37%
Average Gain (10y)	364.6%	330.9%	278.0%	235.1%	243.5%	227.8%	154.8%	100.0%	138.1%
Median Gain (10y)	238.5%	193.5%	171.0%	159.0%	132.5%	113.5%	87.0%	13.0%	39.0%
Maximum Gainer	2228.0%	2547.0%	2452.0%	2852.0%	2432.0%	1892.0%	1807.0%	11483.0%	11483.0%
Maximum Loser	-82.0%	-53.0%	-67.0%	-100.0%	-83.0%	-100.0%	-78.0%	-100.0%	-100.0%
Annualized Average Gain	15.4%	14.6%	13.2%	12.0%	12.2%	11.7%	9.1%	6.7%	8.4%
Annualized Median Gain	12.1%	10.6%	9.8%	9.3%	8.2%	7.3%	6.0%	1.1%	3.1%

For detailed information about each predictability rank, please go to GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank

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Southland Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Southland Holdings Inc (AMEX:SLND) » Definitions » Predictability Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

1100 Kubota Drive, Grapevine, TX, USA, 76051

Website

https://www.southlandholdings.com

Southland Holdings Inc is an infrastructure construction company in North America. The company's infrastructure projects range from water conveyance systems and tunnels to long-span bridges and vertical structures. The company operates in two distinct segments: Civil and Transportation. The civil segment operates throughout North America and specializes in services that include the design and construction of water pipelines, pump stations, lift stations, water and wastewater treatment plants, concrete and structural steel, outfall, and tunneling. The transportation segment operates throughout North America and specializes in services that include the design and construction of bridges, roadways, marine, dredging, ship terminals and piers, and specialty structures and facilities.

Executives

Frankie S. Renda	director, 10 percent owner, officer: PRESIDENT AND CEO	1100 KUBOTA DR., GRAPEVINE TX 76051
Rudolph V. Renda	10 percent owner, officer: CO-COO AND EVP	1100 KUBOTA DR., GRAPEVINE TX 76051
Mario Enrique Ramirez	director	822 JENNIFER COURT, HIGHLAND VILLAGE TX 75077
Izilda P Martins	director	6 SYLVAN WAY, PARSIPPANY NJ 07054
Michael Kyle Burtnett	director	2811 TYLER ST., SOUTHLAKE TX 76092
Walter Timothy Winn	director, 10 percent owner, officer: CO-COO AND EVP	1100 KUBOTA DR., GRAPEVINE TX 76051
Gallarda Cody	officer: CFO, EVP and Treasurer	3889 LADERA HEIGHTS BLVD., FRISCO TX 75034
Frank Renda 2015 Irrevocable Trust	10 percent owner	3700 SCENIC VIEW DR., FLOWER MOUND TX 75022
Ryan E Hummer	director	C/O LEGATO MERGER CORP., 777 THIRD AVENUE, 37TH FLOOR, NEW YORK NY 10017
John Ing	director	C/O LEGATO MERGER CORP., 777 THIRD AVENUE, 37TH FLOOR, NEW YORK NY 10017
Craig L Martin	director	3170 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Adam H Jaffe	officer: CFO & Corporate Secretary	C/O ALLEGRO MERGER CORP., 777 THIRD AVENUE, 37TH FLOOR, NEW YORK NY 10017
Dana Blair Baker	director	200 CRESCENT COURT, SUITE 1450, DALLAS TX 75201
Gregory R Monahan	director, officer: CEO	777 THIRD AVENUE, 37TH FLOOR, NEW YORK NY 10017
Brian Pratt	director, other: Non-Executive Chairman	5950 BERKSHIRE LANE, SUITE 800, DALLAS TX 75225