AKO Capital Portfolio Analysis (December 31, 2021)

Famous fund, AKO Capital, revealed in a recent regulatory filing his newest positions.  In AKO Capital portfolio 2021 analysis, we will go into more detail about top 5 stocks this fund had as of December 31, 2021.

Capital manages about $10.3 billion according to the latest available 13F filling.  Click here for the latest available 13F filling.

The most notable stocks in AKO Capital’s Q4 portfolio include Booking Hldgs Inc, Accenture Plc Ireland, Linde Plc, Thermo Fisher Scientific Inc and Intercontinental Exchange Inc. In addition to others mentioned in detail below.

We used the Q4 portfolio of AKO Capital’s Ako Capital to select his top 5 value stocks. We ranked the securities according to Capital’s stake value in each holding.

Summary

  • AKO Capital’s top 5 securities make up 45.0% of the entire portfolio.
  • Ako Capital owns position in 24 holdings, managing approximately $10.3 billion.
  • Booking Hldgs Inc, Capital’s largest holding, makes up 12.2% of the total portfolio.

Booking Holdings Inc (BKNG)

Ako Capital’s stake value: $1.3 Billion

Percentage of Ako Capital’s 13F Portfolio: 12.2%

Booking Holdings Inc does business in Tobacco Manufacturing industry and has 20.300 employees.

As of February 08, 2022 Booking Hldgs Inc had a market cap of $104.302 Billion. Analysts predicted 1 year target price of $2715.46 that exceeds the current price of $2485.0 for 9.3%. Trailing twelve months P/E ratio is currently 274.6 making it overly expensive stock than the rest of the S&P500 index. Booking Hldgs Inc generated scarce amount compared to previous financial period, $6796 million in 2020 sinking by -54.9% in contrast to 2019 when it was $15066 million. Net income dropped according to the latest fillings, sinking in 2020 by around -98.8% totalling $59 million. Lastly, the profit margin, according to the last 10-F stands at 0.9%, has significantly deteriorated in comparison to the company’s previous years of operation.

Who hasn’t heard of Booking? I am sure we all have been on their website and maybe even made some reservations. The company’s current market capitalisation is more than $100 Billion, however, the company has quite high P/E ratio of 264 mostly due to low earnings caused by coronavirus. The company has been showing positive signs and returning to normal for the last twelve months, but is that enough to justify such a price? We will see.

Let’s remind ourselves that Booking Holdings is the world leader in online travel and related services. It is currently providing services in over 220 countries and territories through brands such as Booking.com, priceline.com, agoda.com, Rentalcars.com, KAYAK and OpenTable. The mission of Booking Holdings is to make it easier for everyone to experience the world. Current CEO is Jeffery Boyd.

Accenture Plc Ireland (ACN)

Ako Capital’s stake value: $1.0 Billion

Percentage of Ako Capital’s 13F Portfolio: 10.0%

Accenture plc does business in Data Processing, Hosting, and Related Services industry, which is Information sector and has 506.000 employees.

On February 08, 2022 Accenture Plc Ireland had a market cap of $218.078 Billion. Analysts predicted 1 year target price of $2715.46 that exceeds the current price of $2485.0 for 9.3%. Trailing twelve months P/E ratio is currently 35.9 making it a slightly more expensive stock than the rest of the S&P500 index. If we look at revenue, Accenture Plc Ireland generated high $50533 million revenue in 2021 which is a considerable increase of 14.0% compared to 2020 when it was $44327 million. Net income was much higher than previous year, increasing by 15.6% in 2021 coming up to $5906 million. Besides, profit margin, which levels at 11.7%, shows an improvement, comparing to the the previous years

Accenture has huge potential for growth as it is in really hot industry. Competition is fierce, but the company did well in 2021, having revenue growth of more than 10% and analysts expect revenue to additionally grow nearly 20% in 2022. Having said that, not so low P/E of 36 seems juicy for such company, unless stronger player come and takes part of that revenue.

ACN is a global professional services company with leading capabilities in digital, cloud and security. Combining unmatched experience and specialized skills across more than 40 industries, it offers Strategy and Consulting, Interactive, Technology and Operations services. Its serving clients in more than 120 countries and embraces the power of change to create value and shared success.

Linde Plc (LIN)

Ako Capital’s stake value: $996.0 Million

Percentage of Ako Capital’s 13F Portfolio: 9.7%

As of February 08, 2022 Linde Plc had a market cap of $152.967 Billion. Analysts predicted 1 year target price of $305.29 that exceeds the current price of $296.52 for 3.0%. Trailing twelve months P/E ratio is currently 43.91 making it a slightly more expensive stock than the rest of the S&P500 index. Regarding revenue, Linde Plc generated $27243 million revenue in 2020 which is a decrease of -3.5% compared to 2019 when it was $28228 million. Net income was slightly higher than previous year, rising in 2020 by 9.5% totalling $2501 million. Lastly, the profit margin, according to the last 10-F stands at 9.2%, has significantly deteriorated in comparison to the company’s previous years of operation.

Linde is a leading global industrial gases and engineering company with its mission of making its world more productive every day by providing high-quality solutions, technologies and services which are making the customers more successful and helping to sustain and protect the planet. Services include chemicals & refining, food & beverage, electronics, healthcare, manufacturing and primary metals. Linde is also famous for delivering gas processing solutions to support customer expansion, efficiency improvements and emissions reductions. Current CEO is Stephen Angel.

Thermo Fisher Scientific Inc (TMO)

Ako Capital’s stake value: $820.6 Million

Percentage of Ako Capital’s 13F Portfolio: 8.0%

Thermo Fisher Scientific Inc. does business in Professional, Scientific, and Technical Services sector and has 13000 employees.

By February 08, 2022 Thermo Fisher Scientific Inc had a market cap of $231.578 Billion. Analysts predicted 1 year target price of $691.71 that exceeds the current price of $577.89 for 19.7%. Trailing twelve months P/E ratio is currently 30.2 making it a slightly more expensive stock than the rest of the S&P500 index. If we look at revenue, Thermo Fisher Scientific Inc generated high $39211 million revenue in 2021 which is a considerable increase of 21.7% compared to 2020 when it was $32218 million. Net income was much higher than previous year, increasing by 21.2% in 2021 coming up to $7725 million. Besides, profit margin, which levels at 19.7%, shows an improvement, comparing to the the previous years.

Thermo Fisher Scientific Inc. is the world leader in serving science, with annual revenue exceeding $25 billion. Its Mission is to enable customers to make the world healthier, cleaner and safer. The company has global team of more than 75,000 colleagues delivers an unrivaled combination of innovative technologies, purchasing convenience and pharmaceutical services through our industry-leading brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, Unity Lab Services and Patheon. Current CEO is Marc Casper.

Intercontinental Exchange Inc (ICE)

Ako Capital’s stake value: $523.6 Million

Percentage of Ako Capital’s 13F Portfolio: 5.1%

Intercontinental Exchange Inc does business in Finance and Insurance sector and has 2018 employees.

On February 08, 2022 Intercontinental Exchange Inc had a market cap of $71.866 Billion. Analysts predicted 1 year target price of $158.06 that exceeds the current price of $127.01 for 24.4%. Trailing twelve months P/E ratio is currently 17.81 making it a slightly cheaper stock than the rest of the S&P500 index. If we look at revenue, Intercontinental Exchange Inc generated high $7146 million revenue in 2021 which is a considerable increase of 18.4% compared to 2020 when it was $6036 million. Net income surged according to the latest fillings, jumping in 2021 by around 94.3% adding up to total of $4058 million. Further, in 2021, the net profit margin, was at 56.8%, shows an improvement compared the company’s previous years of operation.

ICE Mortgage Technology, a division of Intercontinental Exchange, Inc., combines the innovation and expertise of Ellie Mae, Simplifile and MERS to automate the entire mortgage process from consumer engagement through loan registration and every step and task in between. Ellie Mae, as part of ICE Mortgage Technology, is the leading cloud-based loan origination platform provider for the mortgage industry with solutions that enable lenders to originate more loans, lower origination costs and reduce the time to close, all while ensuring the highest levels of compliance, quality and efficiency. Current CEO is Jeffrey Sprecher.

Conclusion

To conclude, here is the list of the top 5 stocks and most recent financial indicators of these stocks as of February 08, 2022.

Stock% of portfolioMarket Cap (USD)P/ENet earnings (USDm)Net earnings y/yProfit margin
Booking Hldgs Inc (BKNG)12.2%104.302B274.659-98.8%0.9%
Accenture Plc Ireland (ACN)10.0%218.078B35.9590615.6%11.7%
Linde Plc (LIN)9.7%152.967B43.925019.5%9.2%
Thermo Fisher Scientific Inc (TMO)8.0%231.578B30.2772521.2%19.7%
Intercontinental Exchange Inc (ICE)5.1%71.866B17.8405894.3%56.8%

You can find the above stocks on Interactive Brokers.

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