Terry Smith Portfolio Analysis (December 31, 2021)

14. February 2022.14. February 2022. Financially Fit Investor Terry Smith

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

Smith manages his investments via his fund, Fundsmith Llp, which holds about $41.0 billion according to the latest available 13F filling. Click here for the latest available 13F filling.

The most notable stocks in Terry Smith’s Q4 portfolio include Microsoft, Idexx Laboratories, Estee Lauder, Paypal Holdings Inc and Intuit Inc. In addition to others mentioned in detail below.

We used the Q4 portfolio of Terry Smith’s Fundsmith Llp to select his top 5 value stocks. We ranked the securities according to Smith’s stake value in each holding.

Summary

Terry Smith’s top 5 securities make up 35.9% of the entire portfolio.
Fundsmith Llp owns position in 44 holdings, managing approximately $41.0 billion.
Microsoft, Smith’s largest holding, makes up 10.7% of the total portfolio.

Microsoft (MSFT)

Fundsmith Llp’s stake value: $4.4 Billion

Percentage of Fundsmith Llp’s 13F Portfolio: 10.7%

Microsoft Corporation does business in Information sector and has 163000 employees. Current CEO is Satya Nadella.

As of February 14, 2022 Microsoft had a market cap of $2.214T Million. Analysts predicted 1 year target price of $370.72 that exceeds the current price of $293.77 for 26.2%. Trailing twelve months P/E ratio is currently 31.45 making it a slightly more expensive stock than the rest of the S&P500 index. If we look at revenue, Microsoft generated high $168088 million revenue in 2021 which is a considerable increase of 17.5% compared to 2020 when it was $143015 million. Net income surged according to the latest fillings, jumping in 2021 by around 38.4% adding up to total of $61271.0 million. Further, in 2021, the net profit margin, was at 36.5%, shows an improvement compared the company’s previous years of operation.

Idexx Laboratories (IDXX)

Fundsmith Llp’s stake value: $2.8 Billion

Percentage of Fundsmith Llp’s 13F Portfolio: 6.8%

Idexx Laboratories, Inc. does business in Manufacturing sector and has 9300 employees. Current CEO is Jonathan Jay Mazelsky.

As of February 14, 2022 Idexx Laboratories had a market cap of $43.123 Million. Analysts predicted 1 year target price of $682.43 that exceeds the current price of $514.88 for 32.5%. Trailing twelve months P/E ratio is currently 59.14 making it overly expensive stock than the rest of the S&P500 index. If we look at revenue, Idexx Laboratories generated high $3215 million revenue in 2021 which is a considerable increase of 18.8% compared to 2020 when it was $2706 million. Net income surged according to the latest fillings, jumping in 2021 by around 28.0% adding up to total of $744.845 million. Besides, profit margin, which levels at 23.2%, shows an improvement, comparing to the previous years.

IDEXX Laboratories, Inc. is a leader in pet healthcare innovation, offering diagnostic and software products and services that deliver solutions and insights to practicing veterinarians around the world.

Estee Lauder (EL)

Fundsmith Llp’s stake value: $2.7 Billion

Percentage of Fundsmith Llp’s 13F Portfolio: 6.5%

Estee Lauder Cos., Inc. does business in Manufacturing sector. Current CEO is Fabrizio Freda.

As of February 14, 2022 Estee Lauder had a market cap of $109.275 Million. Analysts predicted 1 year target price of $364.48 that exceeds the current price of $300.77 for 21.2%. Trailing twelve months P/E ratio is currently 34.43 making it a slightly more expensive stock than the rest of the S&P500 index. If we look at revenue, Estee Lauder generated high $16215 million revenue in 2021 which is a considerable increase of 13.4% compared to 2020 when it was $14294 million. Net income surged according to the latest fillings, jumping in 2021 by around 319.6% adding up to total of $2870.0 million. In addition, the net income margin, which in 2021 was 17.7%, shows significant improvement set side by side with last few years.

The Estée Lauder Companies Inc. is one of the world’s leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products.
As the global leader in prestige beauty, Estée Lauder touches over half a billion consumers a year. The Company’s products are sold in over 150 countries and territories.

Paypal Holdings Inc (PYPL)

Fundsmith Llp’s stake value: $2.5 Billion

Percentage of Fundsmith Llp’s 13F Portfolio: 6.0%

PayPal Holdings Inc does business in Information sector and has 26500 employees. Current CEO is Daniel Schulman.

As of February 14, 2022 Paypal Holdings Inc had a market cap of $133.847 Million. Analysts predicted 1 year target price of $189.32 that exceeds the current price of $113.62 for 66.6%. Trailing twelve months P/E ratio is currently 32.64 making it a slightly more expensive stock than the rest of the S&P500 index. If we look at revenue, Paypal Holdings Inc generated high $25371 million revenue in 2021 which is a considerable increase of 18.3% compared to 2020 when it was $21454 million. Net income was slightly lower than previous year, lowering in 2021 by -0.8% and amounting to $4169.0 million. Besides, profit margin, which levels at 16.4%, shows an improvement, comparing to the previous years.

PayPal has remained at the forefront of the digital payment revolution for more than 20 years.

Intuit Inc (INTU)

Fundsmith Llp’s stake value: $2.4 Billion

Percentage of Fundsmith Llp’s 13F Portfolio: 5.9%

Intuit Inc does business in Software Publishersindustry, which is Information sector and has 10600 employees. Current CEO is Sasan Goodarzi.

As of February 14, 2022 Intuit Inc had a market cap of $150.09 Million. Analysts predicted 1 year target price of $711.29 that exceeds the current price of $536.14 for 32.7%. Trailing twelve months P/E ratio is currently 69.92 making it overly expensive stock than the rest of the S&P500 index. Looking at revenue, Intuit Inc generated significant amount of revenue, $9633 million in 2021, surging by 25.4% in comparison to 2020 when it was $7679 million. Net income was much higher than previous year, increasing by 12.9% in 2021 coming up to $2062.0 million. Moreover, the net profit margin, which is 21.4%, has slipped with the comparison with company’s previous years of operation.

Intuit’s mission is to power prosperity around the world. The Company is a mission-driven, global financial platform company with products including TurboTax, QuickBooks, and Mint, designed to empower consumers, self-employed and small businesses to improve their financial lives.

Conclusion

To conclude, here is the list of the top 5 holdings and most recent financial indicators of these positions as of February 14, 2022.

Stock	% of portfolio	Market Cap (USD)	P/E	Net earnings (USDm)	Net earnings y/y	Profit margin
Microsoft (MSFT)	10.7%	2.214T	31.4	61271	38.4%	36.5%
Idexx Laboratories (IDXX)	6.8%	43.123B	59.1	744	28.0%	23.2%
Estee Lauder (EL)	6.5%	109.275B	34.4	2870	319.6%	17.7%
Paypal Holdings Inc (PYPL)	6.0%	133.847B	32.6	4169	-0.8%	16.4%
Intuit Inc (INTU)	5.9%	150.09B	69.9	2062	12.9%	21.4%

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.