Core Insights - Visa Inc. is a well-established company with a significant global presence, facilitating money movement for consumers, merchants, banks, and governments worldwide [1] Company Overview - Visa operates as a critical component of the global financial infrastructure, enabling transactions across various platforms and regions [1] Investment Perspective - The analysis focuses on providing objective, data-driven insights, particularly on small- to mid-cap companies, while also considering large-cap firms like Visa to offer a comprehensive view of the equity markets [1]

Market Overview - The U.S. stock market showed subdued performance, with the Dow Jones Industrial Average increasing by 0.11% to 49,071.56, while the S&P 500 decreased by 0.13% to 6,969.01, and the Nasdaq Composite fell by 0.72% to 23,685.12 [1] - The technology sector experienced a significant sell-off, particularly in Microsoft Corporation (MSFT) shares, due to concerns over slower cloud growth, although Meta provided some offsetting strength [2] Value Stocks Analysis - Value stocks are highlighted as appealing investment opportunities amid cautious market sentiment, driven by rising oil prices and geopolitical tensions [2] - The Price to Cash Flow (P/CF) ratio is emphasized as an effective valuation metric, indicating that a lower P/CF ratio suggests better value and strong cash generation potential [3][4] - Analysts note that cash flow is a more reliable indicator of a company's financial health compared to earnings, which can be influenced by accounting estimates and management manipulation [5] Investment Strategy - A comprehensive investment strategy should include multiple valuation metrics such as price-to-book ratio, price-to-earnings ratio, and price-to-sales ratio, alongside a favorable Zacks Rank and Value Score [7] - Parameters for selecting true-value stocks include a P/CF ratio less than or equal to the industry median, a minimum stock price of $5, and an average 20-day trading volume greater than 100,000 [8] Selected Value Stocks - Four companies—Harmony Biosciences Holdings, Inc. (HRMY), Universal Health Services, Inc. (UHS), Concentrix Corporation (CNXC), and Global Payments Inc. (GPN)—meet strict value criteria, showing low P/CF ratios and solid financial health [9] - Each of these companies is projected to grow both sales and earnings per share (EPS) in the current financial year, with all carrying a Value Score of A and demonstrating consistent positive earnings surprises [9] Company-Specific Insights - Harmony Biosciences is projected to see sales growth of 21.4% and EPS growth of 25.9% for the current financial year, despite a 4.9% decline in share price over the past year [13] - Universal Health Services anticipates sales growth of 9.7% and EPS growth of 31.3%, with shares rising by 6.1% in the past year [14] - Concentrix Corporation expects sales growth of 2.9% and EPS growth of 4.8%, although its shares have dropped by 26.1% in the past year [15] - Global Payments forecasts sales growth of 1.8% and EPS growth of 5.8%, with shares declining by 36.8% over the past year [16]

Core Insights - Mastercard reported fourth-quarter net revenues of $8.81 billion, an 18% increase year-over-year, surpassing analyst expectations of $8.79 billion [1] - Adjusted EPS for the quarter rose 25% year-over-year to $4.76, exceeding the consensus estimate of $4.25 [1] Revenue Growth Expectations - For the first quarter, Mastercard anticipates net revenue growth in the low teens, compared to the analyst consensus estimate of $8.3 billion [2] - The company projects high-end low double-digit revenue growth for fiscal 2026, against a consensus estimate of $36.8 billion [2] Stock Performance and Analyst Ratings - Following the earnings announcement, Mastercard shares fell 1.3% to $536.16 [2] - Raymond James analyst John Davis maintained an Outperform rating but lowered the price target from $707 to $631 [3] - Wells Fargo analyst Jason Kupferberg maintained an Overweight rating and raised the price target from $660 to $668 [3]

Core Insights - Mastercard reported fourth-quarter net revenues of $8.81 billion, an 18% increase year-over-year, surpassing analyst expectations of $8.79 billion [1] - Adjusted EPS for the quarter rose 25% year-over-year to $4.76, exceeding the consensus estimate of $4.25 [1] Revenue Growth Expectations - For the first quarter, Mastercard anticipates net revenue growth in the low teens, compared to the analyst consensus estimate of $8.3 billion [2] - The company projects high-end low double-digit revenue growth for fiscal 2026, against a consensus estimate of $36.8 billion [2] Stock Performance and Analyst Ratings - Following the earnings announcement, Mastercard shares fell 1.3% to $536.16 [2] - Raymond James analyst John Davis maintained an Outperform rating but lowered the price target from $707 to $631 [3] - Wells Fargo analyst Jason Kupferberg maintained an Overweight rating and raised the price target from $660 to $668 [3]

Financial Data and Key Metrics Changes - The company generated full-year Adjusted EBITDA of $2.4 billion, a decrease from $2.6 billion in 2024, reflecting lower ownership in three businesses following partial sales [17] - Adjusted EFO for the year was $1.2 billion, including $161 million of net gains during the year [17] - Excluding tax credits and the impact of acquisitions and dispositions, Adjusted EBITDA was $2.1 billion, compared to $2 billion in the prior year [17] Business Line Data and Key Metrics Changes - The industrial segment generated full-year Adjusted EBITDA of $1.3 billion, up from $1.2 billion last year, with a 10% increase excluding acquisitions and dispositions [17][18] - The business services segment generated full-year Adjusted EBITDA of $823 million, down from $832 million last year, but increased approximately 5% on a same-store basis [18][19] - The infrastructure services segment generated full-year Adjusted EBITDA of $436 million, down from $606 million last year, impacted by the sale of operations and lower terminal deliveries [19][20] Market Data and Key Metrics Changes - North America is benefiting from easing rates, steady consumer spending, and resilient labor markets, although growth remains challenging in certain end markets [10][11] - In Europe, conditions are more challenging with slower activity in cyclical and industrial end markets, but there are early signs of improvement supported by fiscal spending and stabilizing energy prices [11] Company Strategy and Development Direction - The company is close to completing a corporate reorganization to become a single, newly listed corporation, which is expected to improve trading liquidity and increase index-driven demand for shares [5][6] - The strategy focuses on operational excellence and capital recycling, with significant investments in growth acquisitions and stock repurchases [4][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market backdrop, highlighting that the trading price is 50% higher than a year ago but still at a discount to NAV [8] - The company is well-positioned with capital and capabilities to continue building value in 2026, with a strong focus on operational improvements and cash generation [9][15] Other Important Information - The company ended the year with approximately $2.6 billion of pro forma liquidity at the corporate level, providing significant flexibility for growth and capital allocation [20][21] - The company has repurchased approximately $235 million of its units and shares, remaining committed to completing its $250 million buyback program [21] Q&A Session Summary Question: Clarios performance and monetization - Management indicated that Clarios is generating significant free cash flow and the 45X tax credits will enhance cash for reinvestment, with various options for returning cash to shareholders [23][24] Question: Scientific Games earnings trajectory - Management noted that while there is a strong pipeline for Scientific Games, it takes time for earnings to materialize, and they remain cautiously optimistic about the business [26][27] Question: Balance between reducing leverage and pursuing growth - Management emphasized that growing EBITDA will naturally reduce leverage, and they are focused on growth while managing debt levels [28][29] Question: Update on CDK operations - Management reported strong renewal activity and a focus on stabilizing churn through modernization and customer relationship solidification [42][43] Question: Deployment of capital and acquisitions - Management expressed confidence in continuing the momentum of acquisitions into 2026, with several opportunities being explored [45]

Core Insights - Visa Inc reported better-than-expected revenues and earnings for the fiscal first quarter but left the full-year guidance unchanged [1] Group 1: Financial Performance - Visa's gross revenues increased by 14% year-on-year to approximately $15.17 billion, exceeding consensus estimates by 1% [2] - The company posted earnings of $3.17 per share, surpassing the consensus of $3.14 per share [3] - Management guided for low-double-digit net revenue growth for fiscal 2026 and non-GAAP earnings in the mid-20s [3] Group 2: Analyst Ratings and Market Reaction - Analyst Will Nance maintained a Buy rating on Visa but reduced the price target from $417 to $408 [2] - Despite the positive earnings report, Visa's shares declined by 2.01% to $325.11 at the time of publication [4] - The results reflect a consistent growth algorithm driven by strong U.S. and global volume growth and increasing revenue diversification with value-added services [4]

Group 1 - DLocal Limited (NASDAQ:DLO) is recognized as one of the best performing new tech stocks, with Truist raising its price target to $17 from $16 while maintaining a Buy rating ahead of the Q4 2025 earnings report [1] - Truist anticipates solid performance for DLocal in Q4 2025, but notes that challenging year-over-year comparisons may hinder significant volume exceedance [1] - Itau BBA analyst William Barranjard initiated coverage of DLocal with an Outperform rating and set a price target of $21 [3] Group 2 - Truist expresses general optimism about the FinTech sector's trajectory through 2026, suggesting that management teams may provide more conservative guidance to reset expectations [2] - DLocal operates a global payment processing platform, offering a robust pay-in solution for businesses to receive payments through various methods [4]

Company Overview - Shift4 is a fully integrated payment processor focusing on underserved verticals such as hospitality and events [1] - For the first nine months of 2025, Shift4's payment volume reached $150 billion and is projected to reach $210 billion [1] Leadership and Background - Building Benjamins is a free stock picking and market commentary investment newsletter published by Tradition Investment Management, LLC [1] - Benjamin Halliburton, the founder, has a long history in investment management, having started his career at Merrill Lynch in 1986 and earning an MBA from Duke's Fuqua School of Business in 1990 [1] - Halliburton has received accolades such as "PSN Manager of the Decade" for All-Cap in the 2000s and for Dividend Value in the 2010s [1] - He was recognized as the top-performing portfolio manager at Brundage, Story and Rose during the 1990s bull market [1]

Core Insights - Mastercard reported a higher fourth-quarter profit driven by resilient consumer spending and international travel, with net income rising to $4.06 billion or $4.52 per share, surpassing consensus estimates of $4.25 per share [1] Financial Performance - Net revenue increased by 17.6% year over year to $8.81 billion, slightly above expectations of $8.78 billion [2] - Gross dollar volume rose by 7% during the quarter, indicating steady transaction growth [2] - For the full year, Mastercard reported net revenue growth of 16%, or 15% on a currency-neutral basis [4] Consumer Behavior - Consumer spending remained resilient despite tariff-related uncertainties, with shoppers focusing on essential purchases and promotions during the holiday season [2] - International travel continued to recover, supporting cross-border transaction activity [2] Revenue Drivers - Cross-border spending was highlighted as a higher-yield growth driver compared to domestic volumes, making international transactions a key contributor to revenue growth [3] - Value-added services and solutions revenue increased by 23%, or 21% on a currency-neutral basis [4]

分组1 - The core discussion revolves around the potential acquisition of Warner Brothers Discovery (WBD) by Netflix, with two possible outcomes: either Netflix will buy WBD or no deal will occur [1][2]. - Paramount is seeking assistance from the EU regarding its bid for WBD, while Netflix is considering an all-cash offer, which may change the dynamics of the bidding process [2][4]. - The WBD board appears resistant to Paramount's overtures, indicating a preference for Netflix, which is viewed as a more reliable partner despite the complexities involved [4][7]. 分组2 - The valuation of cable assets is a critical factor in the bidding process, with Netflix's bid excluding these assets, while Paramount's bid includes the entire company [5][8]. - The market performance of Versant, a Comcast spin-off, has been poor, with its shares dropping from $45 to $33, raising questions about the value of cable assets [8][9]. - The discussion highlights the competitive landscape in the streaming industry, with Netflix needing to adapt to a market where content providers are increasingly reluctant to sell their content [12][13]. 分组3 - Netflix's management is considered capable of handling the financial implications of a large acquisition, with a significant free cash flow generation of $7-8 billion annually [12][15]. - Concerns are raised about the potential for increased debt if Netflix pursues an all-cash deal, which could limit its flexibility for future investments [12][15]. - The competitive threat from platforms like YouTube is emphasized, as they capture significant viewership and revenue, posing a challenge for Netflix [13][14]. 分组4 - The recent earnings reports from major banks indicate cautious optimism, with loan growth reported at 8% for Bank of America, 9% for JP Morgan Chase, and 7% for Citigroup, suggesting a mixed consumer sentiment [46][47]. - JP Morgan's significant increase in provisions for credit losses indicates concerns about potential loan defaults, reflecting a cautious outlook on consumer financial health [46][47]. - The discussion on consumer behavior highlights the unpredictability of spending patterns, suggesting that banks may not always accurately reflect consumer confidence [48][49]. 分组5 - L3Harris announced a spin-off of its missile solutions business, backed by a $1 billion investment from the Pentagon, which is expected to enhance R&D and sales [52]. - This strategic move allows L3Harris to focus on faster-growing segments while leveraging government funding to develop its missile solutions business [52]. - The CEO of L3Harris is viewed positively, indicating confidence in the company's leadership and future direction [53].