Glenn Welling Portfolio Analysis (December 31, 2021)

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

Welling manages his investments via his fund, Engaged Capital, which holds about $0.8 billion according to the latest available 13F filling. Click here for the latest available 13F filling.

The most notable stocks in Glenn Welling’s Q4 portfolio include Evolent Health Inc, New Relic Inc, Rent A Ctr Inc New, Ncr Corp New and Hain Celestial Group Inc. In addition to others mentioned in detail below.

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

Summary

• Glenn Welling’s top 5 securities make up 83.9% of the entire portfolio.
• Engaged Capital owns position in 9 holdings, managing approximately $0.8 billion.
• Evolent Health Inc, Welling’s largest holding, makes up 26.7% of the total portfolio.

Evolent Health Inc (EVH)

Engaged Capital’s stake value: $216.6 Million

Percentage of Engaged Capital’s 13F Portfolio: 26.7%

Evolent Health Inc does business in which is Construction sector and has 2900 employees. Current CEO is Frank Williams.

As of February 16, 2022 Evolent Health Inc had a market cap of $2.214 Million. Analysts predicted 1 year target price of $38.4 that exceeds the current price of $24.26 for 58.3%. If we look at revenue, Evolent Health Inc generated high $1022 million revenue in 2020 which is a considerable increase of 20.8% compared to 2019 when it was $846 million. Net income was much higher than previous year, increasing by 10.7% in 2020 coming up to $-334.246 million.

Evolent Health delivers proven clinical and administrative solutions that improve whole-person health while making health care simpler and more affordable.

New Relic Inc (NEWR)

Engaged Capital’s stake value: $175.4 Million

Percentage of Engaged Capital’s 13F Portfolio: 21.6%

New Relic Inc does business in Information sector and has 2168 employees. Current CEO is Lewis Cirne.

As of February 16, 2022 New Relic Inc had a market cap of $4.629 Million. Analysts predicted 1 year target price of $117.18 that exceeds the current price of $72.45 for 61.7%. If we look at revenue, New Relic Inc generated high $667 million revenue in 2021 which is a considerable increase of 11.4% compared to 2020 when it was $599 million. Net income surged according to the latest fillings, jumping in 2021 by around 116.6% adding up to total of $-192.61 million.

New Relic is one of the most powerful cloud-based observability platform built to help companies create more perfect software.

Rent A Center Inc New (RCII)

Engaged Capital’s stake value: $113.2 Million

Percentage of Engaged Capital’s 13F Portfolio: 13.9%

Rent-a-Center Inc. does business in Retail Trade sector.

As of February 16, 2022 Rent A Ctr Inc New had a market cap of $2.753 Million. Analysts predicted 1 year target price of $69.13 that exceeds the current price of $41.88 for 65.1%. Trailing twelve months P/E ratio is currently 14.87 making it a slightly cheaper stock than the rest of the S&P500 index. Regarding revenue, Rent A Ctr Inc New generated $2814 million revenue in 2020, mildly increasing of 5.4% in contrast to 2019 when it was $2669 million. Net income was much higher than previous year, increasing by 19.9% in 2020 coming up to $208.115 million. In addition, the net income margin, which in 2020 was 7.4%, shows significant improvement set side by side with last few years.

Rent-A-Center, Inc. is an industry leading omni-channel lease-to-own provider for the cash and credit constrained customer.

Ncr Corp New (NCR)

Engaged Capital’s stake value: $96.6 Million

Percentage of Engaged Capital’s 13F Portfolio: 11.9%

NCR Corp. does business in Computer Storage Device Manufacturing industry. Current CEO is William Nuti.

As of February 16, 2022 Ncr Corp New had a market cap of $5.843 Million. Analysts predicted 1 year target price of $53.0 that exceeds the current price of $43.12 for 22.9%. Trailing twelve months P/E ratio is currently 76.21 making it overly expensive stock than the rest of the S&P500 index. If we look at revenue, Ncr Corp New generated high $7156 million revenue in 2021 which is a considerable increase of 15.3% compared to 2020 when it was $6207 million. Net income dropped according to the latest fillings, sinking in 2021 by around -222.8% totalling $97.0 million. On top of that, the net profit margin, which was at 1.4%, has dropped compared to previous operations.

NCR Corporation is a leading software- and services-led enterprise provider in the financial, retail and hospitality industries.

Hain Celestial Group Inc (HAIN)

Engaged Capital’s stake value: $79.6 Million

Percentage of Engaged Capital’s 13F Portfolio: 9.8%

Hain Celestial Group Inc does business in Dry Pasta, Dough, and Flour Mixes Manufacturing from Purchased Flour industry, which is Manufacturing sector and has 4287 employees. Current CEO is Mark Schiller.

As of February 16, 2022 Hain Celestial Group Inc had a market cap of $3.344 Million. Analysts predicted 1 year target price of $49.27 that exceeds the current price of $36.99 for 33.2%. Trailing twelve months P/E ratio is currently 29.01 making it a slightly more expensive stock than the rest of the S&P500 index. Regarding revenue, Hain Celestial Group Inc generated $1970 million revenue in 2021 which is a decrease of -4.0% compared to 2020 when it was $2053 million. Net income dropped according to the latest fillings, sinking in 2021 by around -196.2% totalling $77.364 million.

The Hain Celestial Group is a leading organic and natural products company with operations in North America, Europe, Asia and the Middle East.

Conclusion

To conclude, here is the list of the top 5 holdings and most recent financial indicators of these positions as of February 16, 2022.

Stock	% of portfolio	Market Cap (USD)	P/E	Net earnings (USDm)	Net earnings y/y	Profit margin
Evolent Health Inc (EVH)	26.7%	2.214B	nan	-334	10.7%	-32.7%
New Relic Inc (NEWR)	21.6%	4.629B	nan	-192	116.6%	-28.9%
Rent A Ctr Inc New (RCII)	13.9%	2.753B	14.9	208	19.9%	7.4%
Ncr Corp New (NCR)	11.9%	5.843B	76.2	97	-222.8%	1.4%
Hain Celestial Group Inc (HAIN)	9.8%	3.344B	29.0	77	-196.2%	3.9%

Canadians can find the above stocks on Questrade.

Other investors can use Interactive Brokers or eToro.

Disclosure & Disclaimer: Please take into consideration that this is not financial, investing, or tax advice. The information on this website is for informational and recreational purposes only. Before any financial decision do your own due diligence. Some of the links are affiliates, and I may earn a small commission when you make a purchase through them at no additional cost to you.