Renowned value investor Seth Klarman (Trades, Portfolio) has recently adjusted his holdings in Veritiv Corp (VRTV, Financial), a leading provider of printing, publishing, packaging, and facility solutions. This article delves into the details of this transaction, provides an overview of Klarman's investment philosophy, and offers an analysis of Veritiv Corp's financial performance and stock performance. We will also look at other gurus' involvement in Veritiv Corp.
Details of the Transaction
On August 6, 2023, Seth Klarman (Trades, Portfolio) reduced his stake in Veritiv Corp by 509 shares, trading at a price of $141.21 per share. Despite this reduction, Klarman still holds a substantial 3,323,815 shares in the company, representing 8.07% of his portfolio and 24.53% of Veritiv Corp's total shares. The transaction had no significant impact on Klarman's portfolio.
Profile of Seth Klarman (Trades, Portfolio)
Seth Klarman (Trades, Portfolio) is a highly respected figure in the investment world, known for his value investing approach. He is the Portfolio Manager of the investment partnership The Baupost Group, which he founded in 1983. Klarman holds an economics degree from Cornell University and an MBA from Harvard University. He is the author of the $1,000 book "Margin of Safety," a must-read for any serious investor.
Klarman's investment philosophy is broad and flexible, encompassing traditional value stocks, distressed debt, liquidations, and foreign equities or bonds. He is known for his patience and is comfortable holding cash when investment opportunities are scarce. His top holdings include Alphabet Inc(GOOG, Financial), Liberty Global PLC(LBTYK, Financial), Liberty SiriusXM Group(LSXMK, Financial), Viasat Inc(VSAT, Financial), and Veritiv Corp(VRTV, Financial). His portfolio is primarily concentrated in the Communication Services and Technology sectors, with a total equity of $5.53 billion.
Overview of Veritiv Corp
Veritiv Corp, headquartered in the USA, has been publicly traded since June 18, 2014. The company provides a range of services, including printing, publishing, packaging, and facility solutions. It also offers logistics and supply chain management services. Veritiv Corp operates in four primary segments based on product type: Print, Publishing, Packaging, and Facility Solutions. The majority of its revenue comes from the United States.
As of August 11, 2023, Veritiv Corp has a market capitalization of $2.28 billion and a stock price of $167.98. The company's PE percentage stands at 7.58, indicating that it is profitable. However, according to GuruFocus's GF Valuation, the stock is significantly overvalued, with a GF Value of 111.31 and a Price to GF Value ratio of 1.51.
Veritiv Corp's Financial Performance
Veritiv Corp's financial performance can be evaluated using several key metrics. The company's GF Score is 69 out of 100, indicating a poor future performance potential. Its Financial Strength is ranked 7 out of 10, while its Profitability Rank and Growth Rank are 6 and 5 out of 10, respectively. The company's GF Value Rank is 1 out of 10, suggesting that the stock is significantly overvalued.
Veritiv Corp's Piotroski F-Score is 8, indicating a healthy situation. The company's Altman Z score is 5.94, suggesting it is not in any immediate danger of bankruptcy. Its interest coverage ratio is 23.29, ranking it at 94, which indicates that the company can comfortably meet its interest expenses.
Other Gurus' Involvement in Veritiv Corp
Other than Seth Klarman (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio) also holds shares in Veritiv Corp. However, Klarman's stake in the company is significantly larger, making him the largest guru shareholder in Veritiv Corp.
Conclusion
In conclusion, Seth Klarman (Trades, Portfolio)'s recent transaction in Veritiv Corp is a noteworthy event for investors. Despite the reduction in his stake, Klarman remains a significant shareholder in the company. Veritiv Corp's financial performance and stock performance indicate potential for future growth, although the stock is currently considered overvalued according to GuruFocus's GF Valuation. Investors should keep an eye on this stock and the actions of gurus like Klarman and Greenblatt.
