* Between 2020 and 2022, McDonalds’ revenue increased from $19.2B to $23.1B, with Earnings Per Share increasing from $6.31 to $8.33.
** In 2022, the company expanded on its Standards of Business Conduct, and introduced new measures for 2023 to ingrain its core values of Serve-Inclusion-Integrity-Community-Family to every corner of the company.
* AI is expected to unlock $16 trillion in value from the global economy by 2030.
** 450,000 registered users have developed applications and published papers based on IBM quantum technology.
* Honeywell’s Performance Materials and Technologies segment has been steadily climbing from $9.4B in 2020, to $10.0B in 2021, to $10.7B in 2022 - and expected to rise in 2023 with Solstice®
** Between 2020 and 2020, Honeywell’s earnings-per-share has increased from $6.79 to $7.33.
* Revenues for American Express have been skyrocketing from $36.0B in 2020, to $42.3B in 2021, to $52.8B in 2022.
** AXP's earnings per share increased from $3.77 to $9.86 between FY2020 and FY2022.
* Chili’s parent company Brinker saw revenues increase from $3.0B in 2020, to $3.3B in 2021, to $3.8B in 2022. Earnings per share increased from $0.64 to $2.62 in the same period.
* Webex is part of Cisco’s 'collaboration portfolio', that generated $4.4B of Cisco’s $38.0B product revenue last FY.
** Cisco’s product revenue has increased from $35.9B to $36.0B to $38.0B in the last three years.
*** Total revenue including service revenue for Cisco grew from $49.3B, $49.8B, to $51.5B over the last 3 years.
* Caterpillar sales have increased phenomenally, from $39.0B in 2020, to $48.1B in 2021, to $56.5B in 2022.
** Profit per common share of CAT has increased from $5.51 in 2020, to $11.93 in 2021, to $12.72 in 2022.
Market Valuation: $32 Billion
Ironbound Buy-Side Valuation: $40 Billion
Ironbound Assessment: Deerfield Illinois based Walgreens Boots Alliance, Inc., founded in 1901, is the largest retail pharmacy, health and daily living destination in the United States and Europe with over 13,000 locations across 9 countries. Approximately 78% of the American population lives within 5 miles from a Walgreens or Duane Reade retail pharmacy location. In 2022, the company filled 820 million prescriptions, and now has over 102 million myWalgreens rewards loyalty members. Our upside valuation of $50 Billion is on the higher end to account for the Company’s transformational cost management program estimated to unlock an additional $3.5 Billion in annual cost savings after 2024. We like Walgreens because of its meaningful holistic business purpose: to help people lead more joyful lives through better health. In 2022, the company received numerous inclusivity awards that included, a score of 100 from the Human Rights Campaign’s Corporate Equality index, a bronze award on the Stonewall Top Global Employers Index for LGBTQ+ inclusions, and 100% on the Disability Index for disability inclusions. The company is rolling out local clinical services at a lower cost to consumers inside pharmacy locations as a long-term healthcare value creation strategy.
Market Valuation: $19 Billion
Ironbound Buy-Side Valuation: $15 Billion
Ironbound Assessment: Minnesota based Best Buy Co., Inc., founded in 1966, is an American multinational consumer electronic retail chain. Over the last 5 years the company has delivered over 10% return-on-assets, and over the last 10 years averaged 11% operating income as a percentage of assets. As a result, our upside valuation is on the higher end at $25 Billion, equivalent to 10-times the average operating income reported over the most recent three years. We like Best Buy because it reports a mission driven triple-bottom-linebusiness model in their 10K SEC filings. In addition, the company boasts a clear north-star purpose: to enrich lives through technology. Moreover, the company is determined to lead with a positive impact on society and the environment. In 2022, Best Buy reported a 2030 goal to reduce carbon emissions by 75% and become carbon neutral by 2040. Their environmental initiatives also include a 25% reduction in water consumption by 2025 with waste reductions from single-use-plastics as well as a transition to more sustainable alternatives. As part of their long-term growth strategy, Best Buy has been making inroads into health technology to expand their health and fitness related products and services. These stakeholder growth strategies should help revenues double to $100 Billion over the coming decade.
Image: Macy's NYC Flagship Store
Market Valuation: $6 Billion
Ironbound Buy-Side Valuation: $10 Billion
Ironbound Assessment: Manhattan NY based Macy’s Inc., founded in 1858, is an American omnichannel higher-end retailer with almost 800 locations. Our upside valuation is $17 Billion, equivalent to either 4-times the operating income or the fiscal 2021 value of all assets. We like Macy’s and believe the secret behind the company’s 165 years of success is rooted in their team culture, which levels-up colleagues with education and career growth. Furthermore, there is a strong emphasis in the 10K SEC filings on workplace values of acceptance, respect, integrity, and giving back. Looking ahead, Macy’s is making a major post-Covid Polaris growth strategy – designed to better attract Millennials. The Polaris strategy involves modernizing existing technologies to combine the instore and digital experiences with more branded products that better appeal to the new and younger demographic.
We are strategy consultants helping Sovereign Wealth Funds optimize investment strategies that leverage stakeholder values.
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