Valley Forge Capital Management Portfolio Analysis (December 31, 2021)

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

Forge manages his investments via his fund, Valley Forge Capital Management, which holds about $2.6 billion according to the latest available 13F filling. Click here for the latest available 13F filling.

The most notable stocks in Valley Forge Capital Management’s Q4 portfolio include S&P Global Inc, Mastercard Incorporated, Moodys Corp, Fair Isaac Corp and Amazon Com Inc. In addition to others mentioned in detail below.

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

Summary

  • Valley Forge Capital Management’s top 5 securities make up 79.7% of the entire portfolio.
  • Valley Forge Capital Management owns position in 9 holdings, managing approximately $2.6 billion.
  • S&P Global Inc, Forge’s largest holding, makes up 19.9% of the total portfolio.

S&P Global Inc (SPGI)

Valley Forge Capital Management’s stake value: $525.2 Million

Percentage of Valley Forge Capital Management’s 13F Portfolio: 19.9%

S&P Global Inc does business in Finance and Insurance sector. Current CEO is Douglas Peterson.

As of February 16, 2022 S&P Global Inc had a market cap of $93.629 Million. Analysts predicted 1 year target price of $494.58 that exceeds the current price of $384.41 for 28.7%. Trailing twelve months P/E ratio is currently 31.04 making it a slightly more expensive stock than the rest of the S&P500 index. If we look at revenue, S&P Global Inc generated high $8297 million revenue in 2021 which is a considerable increase of 11.5% compared to 2020 when it was $7442 million. Net income surged according to the latest fillings, jumping in 2021 by around 29.3% adding up to total of $3024.0 million. Besides, profit margin, which levels at 36.4%, shows an improvement, comparing to the previous years.

S&P Global is the world’s foremost provider of credit ratings, benchmarks and analytics in the global capital and commodity markets, offering ESG solutions, deep data and insights on critical business factors. 

Mastercard Incorporated (MA)

Valley Forge Capital Management’s stake value: $517.7 Million

Percentage of Valley Forge Capital Management’s 13F Portfolio: 19.6%

Mastercard Incorporated does business in Information sector. Current CEO is David Carlucci.

As of February 16, 2022 Mastercard Incorporated had a market cap of $377.951 Million. Analysts predicted 1 year target price of $429.99 that exceeds the current price of $374.58 for 14.8%. Trailing twelve months P/E ratio is currently 43.79 making it a slightly more expensive stock than the rest of the S&P500 index. If we look at revenue, Mastercard Incorporated generated high $18884 million revenue in 2021 which is a considerable increase of 23.4% compared to 2020 when it was $15301 million. Net income surged according to the latest fillings, jumping in 2021 by around 35.5% adding up to total of $8687.0 million. Besides, profit margin, which levels at 46.0%, shows an improvement, comparing to the previous years.

Mastercard is a global technology company in the payments industry. Its mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible.

Moodys Corp (MCO)

Valley Forge Capital Management’s stake value: $401.4 Million

Percentage of Valley Forge Capital Management’s 13F Portfolio: 15.2%

Moody`s Corp. does business in Administrative and Support and Waste Management and Remediation Services sector and has 11490 employees. Current CEO is Raymond McDaniel.

As of February 16, 2022 Moodys Corp had a market cap of $61.523 Million. Analysts predicted 1 year target price of $407.74 that exceeds the current price of $327.74 for 24.4%. Trailing twelve months P/E ratio is currently 28.14 making it a slightly more expensive stock than the rest of the S&P500 index. If we look at revenue, Moodys Corp generated high $6218 million revenue in 2021 which is a considerable increase of 15.8% compared to 2020 when it was $5371 million. Net income was much higher than previous year, increasing by 24.5% in 2021 coming up to $2214.0 million. Besides, profit margin, which levels at 35.6%, shows an improvement, comparing to the previous years.

Moody’s is a global risk assessment firm that empowers organizations to make better decisions.

Fair Isaac Corp (FICO)

Valley Forge Capital Management’s stake value: $387.9 Million

Percentage of Valley Forge Capital Management’s 13F Portfolio: 14.7%

Fair, Isaac Corp. does business in Information sector and has 3302 employees. Current CEO is William Lansing.

As of February 16, 2022 Fair Isaac Corp had a market cap of $13.373 Million. Analysts predicted 1 year target price of $557.0 that exceeds the current price of $512.64 for 8.7%. Trailing twelve months P/E ratio is currently 37.37 making it a slightly more expensive stock than the rest of the S&P500 index. Regarding revenue, Fair Isaac Corp generated $1316 million revenue in 2021, mildly increasing of 1.7% in contrast to 2020 when it was $1294 million. Net income surged according to the latest fillings, jumping in 2021 by around 65.8% adding up to total of $392.084 million. In addition, the net income margin, which in 2021 was 29.8%, shows significant improvement set side by side with last few years.

Fair Isaac Corporation (FICO), powers decisions that help people and businesses around the world prosper.

Amazon Com Inc (AMZN)

Valley Forge Capital Management’s stake value: $272.5 Million

Percentage of Valley Forge Capital Management’s 13F Portfolio: 10.3%

Amazon.com Inc. does business in Retail Trade sector and has 1298000 employees. Current CEO is Jeffrey Bezos.

As of February 16, 2022 Amazon Com Inc had a market cap of $1.609T Million. Analysts predicted 1 year target price of $4101.9 that exceeds the current price of $3115.81 for 31.6%. Trailing twelve months P/E ratio is currently 48.79 making it overly expensive stock than the rest of the S&P500 index. If we look at revenue, Amazon Com Inc generated high $469822 million revenue in 2021 which is a considerable increase of 21.7% compared to 2020 when it was $386064 million. Net income surged according to the latest fillings, jumping in 2021 by around 56.4% adding up to total of $33364.0 million. Further, in 2021, the net profit margin, was at 7.1%, shows an improvement compared the company’s previous years of operation.

Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking.

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 portfolioMarket Cap (USD)P/ENet earnings (USDm)Net earnings y/yProfit margin
S&P Global Inc (SPGI)19.9%93.629B31.0302429.3%36.4%
Mastercard Incorporated (MA)19.6%377.951B43.8868735.5%46.0%
Moodys Corp (MCO)15.2%61.523B28.1221424.5%35.6%
Fair Isaac Corp (FICO)14.7%13.373B37.439265.8%29.8%
Amazon Com Inc (AMZN)10.3%1.609T48.83336456.4%7.1%

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.