Group 1: L3Harris Technologies, Inc. Overview - L3Harris Technologies, Inc. shares were trading at $281.86 as of September 17th, with trailing and forward P/E ratios of 31.49 and 22.83 respectively [1] - The company is highlighted for its diversified segments, strong free cash flow, and visible backlog, making it an attractive investment opportunity [5] Group 2: Leidos (LDOS) Financial Performance - Leidos has a market capitalization of approximately $52–53 billion and a backlog of $35.4 billion, indicating a strong investment profile supported by scale and cash flow generation [2] - In Q2 2025, Leidos reported revenue of around $5.4 billion, reflecting 6% organic growth, with operating margins of 10–12% and net margins near 8% [2] - Free cash flow is expected to reach $3 billion in FY26, showcasing the company's robust internal capital generation [2] Group 3: Valuation Metrics and Market Position - Leidos' valuation metrics include an EV/Sales of 2.5–2.7×, EV/EBITDA of 15–16×, and a forward P/E of approximately 25×, suggesting balanced pricing relative to growth and profitability [3] - The company's portfolio combines scale with a highly visible backlog, providing reliable revenue streams and making it a stable core holding within the aerospace and defense sector [3] - While 76% of sales are U.S.-dependent, this exposure is mitigated by long-term government and defense programs, creating durable relationships and recurring contracts [3] Group 4: Investment Appeal - Leidos' combination of diversified high-tech segments, predictable cash flow, and strong backlog positions it as a central anchor for investors seeking stable, mid-to-long-term exposure to aerospace and defense [4] - The company's financial strength and operational scale provide resilience against market volatility, while forward-looking cash flow generation offers flexibility for strategic initiatives or shareholder returns [4]

Core Thesis - Fiserv, Inc. is positioned for growth with a focus on its Clover platform, which integrates payments, software, and cash management for small businesses, despite recent stock price declines due to slower GPV growth [2][3][4] Company Overview - Fiserv serves 10,000 financial institutions across over 100 countries, including 3,000 U.S. banks, and is a leader in financial technology [2] - The company has achieved 40 consecutive years of double-digit EPS growth, indicating strong financial performance [2] Clover Platform - Clover's long-term value is driven by revenue growth from merchant signups, hardware sales, and higher-margin value-added services (VAS), rather than just gross payment volume (GPV) [3] - Clover remains underpenetrated in the U.S. market with less than 3% market share and under 10% VAS penetration domestically [3] Growth Strategy - Fiserv aims to expand into new verticals such as hospitality and healthcare, as well as international markets like Brazil, Mexico, and Europe, supporting a revenue target of $3.5 billion for 2025 and $4.5 billion for 2026 [4] - Management has accelerated buybacks to 130% of free cash flow at historically low valuations, suggesting potential for significant returns if free cash flow growth continues [4] Market Performance - Despite beating Q1 and Q2 earnings estimates, Fiserv's stock experienced a sharp decline of up to 23% due to investor concerns over slower Clover GPV growth [4] - The stock price was trading at $132.75 as of September 16th, with trailing and forward P/E ratios of 22.20 and 11.20 respectively [1][2] Historical Context - Previous bullish theses on Fiserv highlighted its strong fundamentals and the value-enhancing First Data acquisition, although the stock has depreciated approximately 34.39% since then [5]

Core Thesis - International General Insurance Holdings Ltd. (IGIC) is viewed positively by investors, with a current share price of $24.15 and trailing and forward P/E ratios of 8.66 and 7.74 respectively, indicating potential undervaluation [1] Financial Performance - IGIC experienced a miss in Q1 with declines in Return on Equity (ROE) and combined ratio, but management anticipates normalization by year-end, suggesting that current issues are largely one-off [2] - The company has historically delivered a tangible book value (TBV) CAGR in the high teens over the past decade, reflecting consistent performance and disciplined capital management [2] Capital Management - Recent share repurchases and special dividend payouts demonstrate management's commitment to returning capital to shareholders, with potential for further distributions in the future [3] - IGIC's current price-to-book ratio of 1.6x indicates it is undervalued compared to peers with similar ROE and growth profiles [4] Market Position - IGIC specializes in the Middle East market, which provides a unique niche and enhances its appeal for private investors despite a low-float, small-cap structure that limits institutional participation [3] - The company's focus on specialty insurance, which constitutes approximately 80-85% of its portfolio, supports higher valuation potential compared to traditional reinsurers [3] Valuation Outlook - A fair value target of around $34 per share by year-end is considered reasonable, with upside potential as the market recognizes the company's operational resilience and niche specialization [4] - The stock has appreciated approximately 32% since previous coverage, maintaining robust free cash flow and capital discipline, reinforcing the bullish thesis [5]

Core Thesis - Enterprise Products Partners L.P. (EPD) is viewed positively due to its strong market position, governance, and financial metrics, with a current share price of $31.65 and P/E ratios of 11.85 trailing and 10.68 forward [1][4] Company Overview - EPD operates a comprehensive, vertically integrated system of pipelines, processing plants, storage, and export terminals across various energy sectors, providing significant market access and reliability to major oil companies [2] - The company has a strong presence in the U.S. petrochemical industry, serving all domestic ethylene crackers and 90% of refining capacity east of the Rockies, with a focus on the low-cost Permian Basin [3] Financial Performance - EPD offers a 7% yield, supported by a distributable cash flow (DCF) coverage of 1.7x, allowing for reinvestment at attractive returns [4] - The company has achieved a 12% pre-tax return on invested capital (ROIC) since 2005, with 26 consecutive years of distribution growth [4] - EPD's balance sheet is conservative, with a leverage ratio of 3.1x and long-term fixed debt averaging 17.7 years at a 4.7% coupon [4] Future Prospects - Upcoming projects worth $6 billion are expected to come online in 2025, potentially adding $700 million in EBITDA [4] - EPD is projected to deliver annual returns exceeding 10.5%, driven by its durable assets, disciplined capital allocation, and strong governance [4][5]

Group 1 - XPEL, Inc. is a global leader in protective automotive films and coatings, generating revenue primarily through paint protection films (PPF), window tint, ceramic coatings, and supporting software and tools for installers [2][3] - The company benefits from recurring revenue driven by ongoing demand for PPF on new vehicles, repeat business from dealerships and installers, and an expanding global distribution network [2][3] - XPEL's strong brand reputation in premium PPF and tint solutions, along with high-margin products, positions it favorably in the automotive aftermarket sector [2][4] Group 2 - The growth potential of XPEL is enhanced by its ability to expand into new regions and verticals, leveraging trusted brand and established dealer relationships [3][4] - The company's products not only protect vehicles but also enhance resale value, improve aesthetics and durability, and provide comfort and energy efficiency [3] - XPEL's integrated approach, balancing high-quality products, strong customer relationships, and strategic expansion, creates a compelling investment case with predictable revenue growth [4][6] Group 3 - The company's stock price was trading at $38.48 as of September 8th, with a forward P/E of 21.87 [1] - Previous analyses indicated that the company's stock price had depreciated approximately by 11.25% as of January 2025, amid macro and regional challenges [5] - The current bullish thesis emphasizes recurring revenue, scalable distribution, and the integrated approach to dealer and customer relationships [6]

Core Thesis - The bullish thesis on Topgolf Callaway Brands Corp. (MODG) highlights the investment opportunity created by the upcoming spin-off of its TopGolf Entertainment business, which is expected to enhance the valuation of the remaining company focused on premium golf clubs, active-lifestyle apparel, and the TopTracer platform [2][5]. Financial Metrics - As of September 4th, MODG's share price was $9.12, with trailing and forward P/E ratios of 98.91 and 156.25 respectively [1]. - The remaining company trades at approximately 5× the projected 2027 EPS of $1.57 and 1.2× EV/Sales, indicating a valuation significantly below peers like TaylorMade and Titleist, suggesting substantial upside potential [2]. Market Dynamics - The core golf business is benefiting from COVID-era demand tailwinds, an impending club replacement cycle, and increased golf participation, particularly among women and juniors, which expands the addressable market [2]. - TopTracer, a gamified ball-tracking technology, is installed in over 24,000 bays and represents a high-margin recurring revenue stream, with potential for a 15% EBIT uplift through incremental sign-ups and pricing power [3]. Operational Strengths - Callaway's core brands, including TravisMathew, Ogio, and Callaway apparel, maintain strong market positioning and premium perception, supported by solid consumer demand despite temporary inventory challenges [3]. - The recent sale of Jack Wolfskin for $290 million has improved the company's balance sheet, enhancing financial flexibility for debt reduction or reinvestment [3]. Growth Catalysts - Multiple catalysts for growth include the impending TopGolf separation, macro golf tailwinds, and under-monetized TopTracer revenue, which could offer potential upside of 70%–125% over the next two to three years [4]. - Even without the spin-off, Callaway's core business presents attractive value and a clear deleveraging path, positioning it as an underrecognized opportunity in the golf and active-lifestyle sectors [4].