Latest news with #ChuckRoyce
Yahoo
21 hours ago
- Business
- Yahoo
Chuck Royce's Strategic Moves: A Closer Look at Kennedy-Wilson Holdings Inc.
Exploring the Latest 13F Filing and Investment Strategies Chuck Royce (Trades, Portfolio) recently submitted the 13F filing for the second quarter of 2025, providing insights into his investment moves during this period. Charles M. Royce is known as one of the pioneers of small-cap investing. He has been the portfolio manager for Royce Pennsylvania Mutual Fund since 1972. Royce holds a bachelor's degree from Brown University and a Master of Business Administration from Columbia University. The firm invests in smaller companies, primarily those with market capitalizations up to $5 billion, although some of its Funds may invest in companies with market capitalizations up to $10 billion. The value approaches that portfolio managers use share one significant trait: They are looking for terrific stocks trading for less than the estimate of the company's worth as a business - its enterprise value. "Essentially, we are interested in three thingsa strong balance sheet, a record of success as a business, and the potential for a profitable future." - Charles M. Royce Warning! GuruFocus has detected 7 Warning Signs with SEIC. Summary of New Buy Chuck Royce (Trades, Portfolio) added a total of 54 stocks, among them: The most significant addition was Graphic Packaging Holding Co (NYSE:GPK), with 1,076,587 shares, accounting for 0.23% of the portfolio and a total value of $22.68 million. The second largest addition to the portfolio was Repligen Corp (NASDAQ:RGEN), consisting of 89,522 shares, representing approximately 0.11% of the portfolio, with a total value of $11.13 million. The third largest addition was Douglas Dynamics Inc (NYSE:PLOW), with 317,433 shares, accounting for 0.1% of the portfolio and a total value of $9.35 million. Key Position Increases Chuck Royce (Trades, Portfolio) also increased stakes in a total of 325 stocks, among them: The most notable increase was Evercore Inc (NYSE:EVR), with an additional 111,885 shares, bringing the total to 146,085 shares. This adjustment represents a significant 327.15% increase in share count, a 0.31% impact on the current portfolio, with a total value of $39.45 million. The second largest increase was Installed Building Products Inc (NYSE:IBP), with an additional 130,221 shares, bringing the total to 370,630. This adjustment represents a significant 54.17% increase in share count, with a total value of $66.83 million. Summary of Sold Out Chuck Royce (Trades, Portfolio) completely exited 69 holdings in the second quarter of 2025, as detailed below: Faro Technologies Inc (FARO): Chuck Royce (Trades, Portfolio) sold all 1,053,329 shares, resulting in a -0.31% impact on the portfolio. Fabrinet (NYSE:FN): Chuck Royce (Trades, Portfolio) liquidated all 64,555 shares, causing a -0.14% impact on the portfolio. Key Position Reduces Chuck Royce (Trades, Portfolio) also reduced positions in 318 stocks. The most significant changes include: Reduced Kennedy-Wilson Holdings Inc (NYSE:KW) by 4,471,212 shares, resulting in a -59.08% decrease in shares and a -0.42% impact on the portfolio. The stock traded at an average price of $6.7 during the quarter and has returned 25.46% over the past 3 months and -21.55% year-to-date. Reduced Air Lease Corp (NYSE:AL) by 620,395 shares, resulting in a -30% reduction in shares and a -0.32% impact on the portfolio. The stock traded at an average price of $51.99 during the quarter and has returned 3.43% over the past 3 months and 15.64% year-to-date. Portfolio Overview At the second quarter of 2025, Chuck Royce (Trades, Portfolio)'s portfolio included 782 stocks, with top holdings including 1.13% in SEI Investments Co (NASDAQ:SEIC), 1.12% in Arcosa Inc (NYSE:ACA), 0.97% in Haemonetics Corp (NYSE:HAE), 0.93% in MKS Inc (NASDAQ:MKSI), and 0.87% in Air Lease Corp (NYSE:AL). The holdings are mainly concentrated in 11 industries: Industrials, Technology, Financial Services, Consumer Cyclical, Healthcare, Basic Materials, Energy, Consumer Defensive, Communication Services, Real Estate, and Utilities. This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein. This article first appeared on GuruFocus.
Yahoo
a day ago
- Business
- Yahoo
Chuck Royce's Strategic Moves: A Closer Look at Kennedy-Wilson Holdings Inc.
Exploring the Latest 13F Filing and Investment Strategies Chuck Royce (Trades, Portfolio) recently submitted the 13F filing for the second quarter of 2025, providing insights into his investment moves during this period. Charles M. Royce is known as one of the pioneers of small-cap investing. He has been the portfolio manager for Royce Pennsylvania Mutual Fund since 1972. Royce holds a bachelor's degree from Brown University and a Master of Business Administration from Columbia University. The firm invests in smaller companies, primarily those with market capitalizations up to $5 billion, although some of its Funds may invest in companies with market capitalizations up to $10 billion. The value approaches that portfolio managers use share one significant trait: They are looking for terrific stocks trading for less than the estimate of the company's worth as a business - its enterprise value. "Essentially, we are interested in three thingsa strong balance sheet, a record of success as a business, and the potential for a profitable future." - Charles M. Royce Warning! GuruFocus has detected 7 Warning Signs with SEIC. Summary of New Buy Chuck Royce (Trades, Portfolio) added a total of 54 stocks, among them: The most significant addition was Graphic Packaging Holding Co (NYSE:GPK), with 1,076,587 shares, accounting for 0.23% of the portfolio and a total value of $22.68 million. The second largest addition to the portfolio was Repligen Corp (NASDAQ:RGEN), consisting of 89,522 shares, representing approximately 0.11% of the portfolio, with a total value of $11.13 million. The third largest addition was Douglas Dynamics Inc (NYSE:PLOW), with 317,433 shares, accounting for 0.1% of the portfolio and a total value of $9.35 million. Key Position Increases Chuck Royce (Trades, Portfolio) also increased stakes in a total of 325 stocks, among them: The most notable increase was Evercore Inc (NYSE:EVR), with an additional 111,885 shares, bringing the total to 146,085 shares. This adjustment represents a significant 327.15% increase in share count, a 0.31% impact on the current portfolio, with a total value of $39.45 million. The second largest increase was Installed Building Products Inc (NYSE:IBP), with an additional 130,221 shares, bringing the total to 370,630. This adjustment represents a significant 54.17% increase in share count, with a total value of $66.83 million. Summary of Sold Out Chuck Royce (Trades, Portfolio) completely exited 69 holdings in the second quarter of 2025, as detailed below: Faro Technologies Inc (FARO): Chuck Royce (Trades, Portfolio) sold all 1,053,329 shares, resulting in a -0.31% impact on the portfolio. Fabrinet (NYSE:FN): Chuck Royce (Trades, Portfolio) liquidated all 64,555 shares, causing a -0.14% impact on the portfolio. Key Position Reduces Chuck Royce (Trades, Portfolio) also reduced positions in 318 stocks. The most significant changes include: Reduced Kennedy-Wilson Holdings Inc (NYSE:KW) by 4,471,212 shares, resulting in a -59.08% decrease in shares and a -0.42% impact on the portfolio. The stock traded at an average price of $6.7 during the quarter and has returned 25.46% over the past 3 months and -21.55% year-to-date. Reduced Air Lease Corp (NYSE:AL) by 620,395 shares, resulting in a -30% reduction in shares and a -0.32% impact on the portfolio. The stock traded at an average price of $51.99 during the quarter and has returned 3.43% over the past 3 months and 15.64% year-to-date. Portfolio Overview At the second quarter of 2025, Chuck Royce (Trades, Portfolio)'s portfolio included 782 stocks, with top holdings including 1.13% in SEI Investments Co (NASDAQ:SEIC), 1.12% in Arcosa Inc (NYSE:ACA), 0.97% in Haemonetics Corp (NYSE:HAE), 0.93% in MKS Inc (NASDAQ:MKSI), and 0.87% in Air Lease Corp (NYSE:AL). The holdings are mainly concentrated in 11 industries: Industrials, Technology, Financial Services, Consumer Cyclical, Healthcare, Basic Materials, Energy, Consumer Defensive, Communication Services, Real Estate, and Utilities. This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein. This article first appeared on GuruFocus.
Yahoo
20-05-2025
- Automotive
- Yahoo
Valvoline: Fleet and non-oil change revenues are growing faster than the core business
Business ModelQuick lube and light maintenance services, such as tire rotations, battery replacements, oil and transmission fluid changes, and tune-ups, are provided by VVV, a US-based operator and franchisor of auto repair shops. 53% of VVV's 1,790 Valvoline Instant Oil Change, 300 Valvoline Express Care, and more than 100 Great Canadian Oil Change locations are franchised, following the company's March 2023 sale of its Global Products division to Aramco. Who Owns ValvolineEven though, there are a number of high profile gurus who currently have Valvoline in their portfolio, VVV does not even make more than a percentage of their portfolio. And this is something quite obscure as an observer as Valvoline ticks all the boxes that value investors would want to have in a gurus do not own this stock because Valvoline has not paid a dime in dividends past 3 years, despite such robust cashflow. Valvoline announced to buy back shares worth $400 million but that did not seem to garner the attention of deep-value Gurus like Dan Loeb, Jeff Ubben and Nelson Peltz (Trades, Portfolio). At the moment Chuck Royce (Trades, Portfolio), Mario Gabelli (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio) have stakes in Valvoline which represents 0.46%, 0.04% and 0.03%, respectively, of their DriversStrategic Divestment: A major strategic change towards Valvoline's Retail Services segment came when it sold Aramco $2.65 billion in Global Products business. With almost $2.25 billion in net proceeds, the deal Valvoline used to fund retail operations expansion, lower debt, and improve shareholder returns. The sale gave Valvoline a large cash infusion, so improving her liquidity and financial flexibility. Reducing debt improved the balance sheet of the business, so lowering financial risk. A part of the earnings were reinvested into the Retail Services division, so enabling future expansion in a market with great promise. Driven by trends like hybrid and electric vehicles, Focusing on Retail Services helps Valvoline access the expanding automotive preventative maintenance industry. Over time, this change is supposed to raise shareholder value and profitability. Valvoline uses its brand and knowledge in the automotive service sector, thus this is probably going to result in improved margins and revenue growth. This divestment fit Valvoline's approach to refocus on the expanding automotive preventive maintenance industry, especially in view of increasing demand from markets for hybrid and electric cars. Though past divestments like Ashland's 2016 Valvoline IPO of Valvoline shares occurred, the Global Products sale is the most notable recent change. In its core retail business, this action has positioned Valvoline for financial flexibility and accelerated Tailwinds: Quick lube manufacturer Valvoline has a chance to reach its target of 3,500+ units in the sizable and extremely fragmented addressable market. With a profitability CAGR that is faster than revenue, an EBITDA CAGR of 9.8%, and a net sales CAGR of 8.6%, the company's store-count story is bolstered by appealing unit economics. The management of Valvoline is laser-focused, making significant investments in technology and teams to promote operational excellence. Valvoline is showing revenue increments because they have a very well-defined operational strategy which is centered on the Valvoline Instant Oil Change (VIOC) service centers that are mainly engaged in quick, handy and preventive automotive maintenance. Network expansion is also very important; by building more service centers, Valvoline brews its market gaining and facilitates the company to serve more clients and directly drive revenue. Besides, the operational efficiency also serves to broaden this growth the fast processes and less duration of services allow every location to handle more customers each day which leads to an increase in per-center income. Furthermore, Valvoline prioritizes customer experience: the use of also digital tools such as online scheduling to enhance convenience, which in turn, creates loyalty and generates the repeat business. The way it manages the franchise ensures the quality is consistent in all locations through the training and support it gives, thus, the brand gets trust and it becomes more attractive to customers. Moreover, Valvoline is also ready to the market developments such as offering the services for electric vehicles due to the fact they will be more opportunity makers in the future. This tactical combination involving the expansion, efficiency, customer focus, and adaptability has led to an almost doubling of revenue for Valvoline and has set it firmly at the top of the automotive service organization's mix of scaled-down smaller partners and big, capital-rich partners creates a special franchisee dynamic. Throughout the whole store footprint, VVV has continuously reported +HSD/LDD comp growth, accounting for +710%. Given that the DIY habit is mostly based on income lines, the transition from DIY to DIFM is a significant source of traffic. Since the population of people aged 35 and under is larger than that of their elders, there will be ample space for future traffic growth as these generations approach their prime spending years. Since [url="]fleet [/url]and non-oil change revenues are growing faster than the core business and continue to scale as part of the mix, they offer a chance for higher ticket and volume sales. To take advantage of this, management recently installed a new CRM there has been debate around whether increased oil efficiency from synthetics will reduce quick lube revenues as the relative increase in mileage exceeds the price premium. However, Valvoline's performance has shown that increased premiumization has not affected unit volumes to date, suggesting continued premiumization can drive further revenue growth as vehicles using conventional oil begin to phase out of the car Adoption: By 2050, it is anticipated that up to 30% of cars will be electric vehicles (EVs), with a "worst case" scenario that still permits a sizable amount of fuel-efficient vehicle (FCF) generation. There are many different viewpoints in the EV debate, so it's critical to assess the risk of EVs using Toyota's harsher 30% metric. The number of ICE vehicles on the road in 2050 would be 5% fewer than it is now, based on this level and historical car park growth. This suggests a Total Asset Management (TAM) that is significantly larger than the current footprint of quick lube providers. Customers' realization that the cost of fueling or charging a car is not the biggest expense of owning one is causing the EV Euphoria story to slow down. EV batteries' high cost and brief lifespan have had a direct effect on the residual value of these cars, raising owners' insurance and financing expenses. The invisible accrual cost brought on by EVs' comparatively lower residual value makes this situation even is not waiting to be the last horse and buggy in town, as it recognizes that even in an EV world, these vehicles will need some form of convenient quick service solution. The company's true asset is its network of conveniently located boxes with bays, basements, and trained automotive technicians, which will likely be the largest and densest in the country in a few years. Management has begun taking steps to address this need and pilot maintenance services geared and advertised directly to the EV market. Valuation :An effective way to value VVV as a whole would be calibrating its price per outlet today against price per outlet right after the completion of its monumental disposal of Global Products Business to Aramco on 1st March 2023. The chart above depicts the material drop in price/outlet for VVV and also makes an argument of VVV's poor management. However, to add more context to our analysis, when we account the fact that VVV's outstanding shares has gone down by almost 25% whereas the stock was down only 2% over the course of this period. Key RisksLocal operators and quick lube franchises face fierce competition, and premiumization and price inflation may cause a shift toward longer oil change intervals. Additionally, because customers may choose to have longer oil changes, the move to electric vehicles (EVs) in the car parc mix may have a negative effect on the unit economics of VVV well-defined operational strategy, which focuses on Valvoline Instant Oil Change (VIOC) service centers for convenient, quick, and preventive auto maintenance, is responsible for the company's revenue growth. Because it enables the business to serve more customers and generate income directly, network expansion is essential for market article first appeared on GuruFocus.
Yahoo
20-05-2025
- Automotive
- Yahoo
Valvoline: Fleet and non-oil change revenues are growing faster than the core business
Business ModelQuick lube and light maintenance services, such as tire rotations, battery replacements, oil and transmission fluid changes, and tune-ups, are provided by VVV, a US-based operator and franchisor of auto repair shops. 53% of VVV's 1,790 Valvoline Instant Oil Change, 300 Valvoline Express Care, and more than 100 Great Canadian Oil Change locations are franchised, following the company's March 2023 sale of its Global Products division to Aramco. Who Owns ValvolineEven though, there are a number of high profile gurus who currently have Valvoline in their portfolio, VVV does not even make more than a percentage of their portfolio. And this is something quite obscure as an observer as Valvoline ticks all the boxes that value investors would want to have in a gurus do not own this stock because Valvoline has not paid a dime in dividends past 3 years, despite such robust cashflow. Valvoline announced to buy back shares worth $400 million but that did not seem to garner the attention of deep-value Gurus like Dan Loeb, Jeff Ubben and Nelson Peltz (Trades, Portfolio). At the moment Chuck Royce (Trades, Portfolio), Mario Gabelli (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio) have stakes in Valvoline which represents 0.46%, 0.04% and 0.03%, respectively, of their DriversStrategic Divestment: A major strategic change towards Valvoline's Retail Services segment came when it sold Aramco $2.65 billion in Global Products business. With almost $2.25 billion in net proceeds, the deal Valvoline used to fund retail operations expansion, lower debt, and improve shareholder returns. The sale gave Valvoline a large cash infusion, so improving her liquidity and financial flexibility. Reducing debt improved the balance sheet of the business, so lowering financial risk. A part of the earnings were reinvested into the Retail Services division, so enabling future expansion in a market with great promise. Driven by trends like hybrid and electric vehicles, Focusing on Retail Services helps Valvoline access the expanding automotive preventative maintenance industry. Over time, this change is supposed to raise shareholder value and profitability. Valvoline uses its brand and knowledge in the automotive service sector, thus this is probably going to result in improved margins and revenue growth. This divestment fit Valvoline's approach to refocus on the expanding automotive preventive maintenance industry, especially in view of increasing demand from markets for hybrid and electric cars. Though past divestments like Ashland's 2016 Valvoline IPO of Valvoline shares occurred, the Global Products sale is the most notable recent change. In its core retail business, this action has positioned Valvoline for financial flexibility and accelerated Tailwinds: Quick lube manufacturer Valvoline has a chance to reach its target of 3,500+ units in the sizable and extremely fragmented addressable market. With a profitability CAGR that is faster than revenue, an EBITDA CAGR of 9.8%, and a net sales CAGR of 8.6%, the company's store-count story is bolstered by appealing unit economics. The management of Valvoline is laser-focused, making significant investments in technology and teams to promote operational excellence. Valvoline is showing revenue increments because they have a very well-defined operational strategy which is centered on the Valvoline Instant Oil Change (VIOC) service centers that are mainly engaged in quick, handy and preventive automotive maintenance. Network expansion is also very important; by building more service centers, Valvoline brews its market gaining and facilitates the company to serve more clients and directly drive revenue. Besides, the operational efficiency also serves to broaden this growth the fast processes and less duration of services allow every location to handle more customers each day which leads to an increase in per-center income. Furthermore, Valvoline prioritizes customer experience: the use of also digital tools such as online scheduling to enhance convenience, which in turn, creates loyalty and generates the repeat business. The way it manages the franchise ensures the quality is consistent in all locations through the training and support it gives, thus, the brand gets trust and it becomes more attractive to customers. Moreover, Valvoline is also ready to the market developments such as offering the services for electric vehicles due to the fact they will be more opportunity makers in the future. This tactical combination involving the expansion, efficiency, customer focus, and adaptability has led to an almost doubling of revenue for Valvoline and has set it firmly at the top of the automotive service organization's mix of scaled-down smaller partners and big, capital-rich partners creates a special franchisee dynamic. Throughout the whole store footprint, VVV has continuously reported +HSD/LDD comp growth, accounting for +710%. Given that the DIY habit is mostly based on income lines, the transition from DIY to DIFM is a significant source of traffic. Since the population of people aged 35 and under is larger than that of their elders, there will be ample space for future traffic growth as these generations approach their prime spending years. Since [url="]fleet [/url]and non-oil change revenues are growing faster than the core business and continue to scale as part of the mix, they offer a chance for higher ticket and volume sales. To take advantage of this, management recently installed a new CRM there has been debate around whether increased oil efficiency from synthetics will reduce quick lube revenues as the relative increase in mileage exceeds the price premium. However, Valvoline's performance has shown that increased premiumization has not affected unit volumes to date, suggesting continued premiumization can drive further revenue growth as vehicles using conventional oil begin to phase out of the car Adoption: By 2050, it is anticipated that up to 30% of cars will be electric vehicles (EVs), with a "worst case" scenario that still permits a sizable amount of fuel-efficient vehicle (FCF) generation. There are many different viewpoints in the EV debate, so it's critical to assess the risk of EVs using Toyota's harsher 30% metric. The number of ICE vehicles on the road in 2050 would be 5% fewer than it is now, based on this level and historical car park growth. This suggests a Total Asset Management (TAM) that is significantly larger than the current footprint of quick lube providers. Customers' realization that the cost of fueling or charging a car is not the biggest expense of owning one is causing the EV Euphoria story to slow down. EV batteries' high cost and brief lifespan have had a direct effect on the residual value of these cars, raising owners' insurance and financing expenses. The invisible accrual cost brought on by EVs' comparatively lower residual value makes this situation even is not waiting to be the last horse and buggy in town, as it recognizes that even in an EV world, these vehicles will need some form of convenient quick service solution. The company's true asset is its network of conveniently located boxes with bays, basements, and trained automotive technicians, which will likely be the largest and densest in the country in a few years. Management has begun taking steps to address this need and pilot maintenance services geared and advertised directly to the EV market. Valuation :An effective way to value VVV as a whole would be calibrating its price per outlet today against price per outlet right after the completion of its monumental disposal of Global Products Business to Aramco on 1st March 2023. The chart above depicts the material drop in price/outlet for VVV and also makes an argument of VVV's poor management. However, to add more context to our analysis, when we account the fact that VVV's outstanding shares has gone down by almost 25% whereas the stock was down only 2% over the course of this period. Key RisksLocal operators and quick lube franchises face fierce competition, and premiumization and price inflation may cause a shift toward longer oil change intervals. Additionally, because customers may choose to have longer oil changes, the move to electric vehicles (EVs) in the car parc mix may have a negative effect on the unit economics of VVV well-defined operational strategy, which focuses on Valvoline Instant Oil Change (VIOC) service centers for convenient, quick, and preventive auto maintenance, is responsible for the company's revenue growth. Because it enables the business to serve more customers and generate income directly, network expansion is essential for market article first appeared on GuruFocus. Sign in to access your portfolio
