Yacktman Asset Management Portfolio Analysis (December 31, 2021)

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

Fund holds about $11.2 billion according to the latest available 13F filling.  Click here for the latest available 13F filling.

The most notable stocks in Yacktman Asset Management’s Q4 portfolio include Pepsico Inc., Canadian Natural Resources Ltd, Microsoft Corp., Alphabet Inc. and Procter & Gamble. In addition to others mentioned in detail below.

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

Summary

• Yacktman Asset Management’s top 5 securities make up 29.6% of the entire portfolio.
• Yacktman Asset Management owns position in 64 holdings, managing approximately $11.2 billion.
• Pepsico Inc., Asset’s largest holding, makes up 6.9% of the total portfolio.

Pepsico Inc. (PEP)

Yacktman Asset Management’s stake value: $774.0 Million

Percentage of Yacktman Asset Management’s 13F Portfolio: 6.9%

PepsiCo Inc does business in Soft Drink Manufacturing industry. Current CEO is Ramon Laguarta.

As of February 08, 2022 Pepsico Inc. had a market cap of $237.996 Billion. Analysts predicted 1 year target price of $175.71 that exceeds the current price of $172.63 for 1.8%. Trailing twelve months P/E ratio is currently 29.32 making it a slightly more expensive stock than the rest of the S&P500 index. Regarding revenue, Pepsico Inc. generated $70372 million revenue in 2020, mildly increasing of 4.8% in contrast to 2019 when it was $67161 million. Net income was slightly lower than previous year, lowering in 2020 by -2.7% and amounting to $7120 million. On top of that, the net profit margin, which was at 10.1%, has dropped compared to previous operations.

PepsiCo has products in more than 200 countries around the world. The revenue stream is by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo’s product portfolio includes a wide range of enjoyable foods and beverages, including 23 brands that generate more than $1 billion each in estimated annual retail sales.
 
Guiding PepsiCo is vision to Be the Global Leader in Convenient Foods and Beverages by Winning with Purpose. “Winning with Purpose” reflects their ambition to win sustainably in the marketplace and embed purpose into all aspects of the business

Canadian Natural Resources Ltd (CNQ)

Yacktman Asset Management’s stake value: $719.4 Million

Percentage of Yacktman Asset Management’s 13F Portfolio: 6.4%

Canadian Natural Resources Ltd. does business in Crude Petroleum and Natural Gas Extraction industry, which is Mining, Quarrying, and Oil and Gas Extraction sector and has 9993 employees.

As of February 08, 2022 Canadian Natural Resources Ltd had a market cap of $59.721 Billion. Analysts predicted 1 year target price of $54.68 that exceeds the current price of $53.1 for 3.0%. Trailing twelve months P/E ratio is currently 13.0 making it a slightly cheaper stock than the rest of the S&P500 index. Canadian Natural Resources Ltd generated scarce amount compared to previous financial period, $16893 million in 2020 sinking by -26.1% in contrast to 2019 when it was $22871 million. Net income dropped according to the latest fillings, sinking in 2020 by around -108.0% totalling $-435 million. Lastly, the profit margin, according to the last 10-F stands at -2.6%, has significantly deteriorated in comparison to the company’s previous years of operation.

Canadian Natural is a senior oil and natural gas production company, with continuing operations in its core areas such as ones in Western Canada, the U.K. portion of the North Sea and Offshore Africa.

As most energy companies, huge losses are visable in 2020. However, when demand for energy again grew in 2021, things started to get back on track. Looking forward to see audited results of CNQ in 2021.

Microsoft Corp. (MSFT)

Yacktman Asset Management’s stake value: $688.3 Million

Percentage of Yacktman Asset Management’s 13F Portfolio: 6.1%

Microsoft Corporation does business in Data Processing, Hosting, and Related Servicesindustry, which is Information sector and has 163000 employees. Current CEO is Satya Nadella.

As of February 08, 2022 Microsoft Corp. had a market cap of $2.28T Billion. Analysts predicted 1 year target price of $370.97 that exceeds the current price of $301.25 for 23.1%. Trailing twelve months P/E ratio is currently 32.39 making it a slightly more expensive stock than the rest of the S&P500 index. If we look at revenue, Microsoft Corp. 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 million. Further, in 2021, the net profit margin, was at 36.5%, shows an improvement compared the company’s previous years of operation.

We all have heard of Microsoft and probably are using some of their services. The company enables digital transformation for the era of an intelligent cloud and an intelligent edge. Its mission is to empower every person and every organization on the planet to achieve more.

Alphabet Inc. (GOOGL)

Yacktman Asset Management’s stake value: $616.1 Million

Percentage of Yacktman Asset Management’s 13F Portfolio: 5.5%

Alphabet Inc does business in All Other Telecommunications industry, which is Information sector and has 135301 employees. Current CEO is Sundar Pichai.

As of February 08, 2022 Alphabet Inc. had a market cap of $1.834T Billion. Analysts predicted 1 year target price of $3454.49 that exceeds the current price of $2780.53 for 24.2%. Trailing twelve months P/E ratio is currently 24.76 making it a slightly cheaper stock than the rest of the S&P500 index. Looking at revenue, Alphabet Inc. generated significant amount of revenue, $257637 million in 2021, surging by 41.2% in comparison to 2020 when it was $182527 million. Net income surged according to the latest fillings, jumping in 2021 by around 88.8% adding up to total of $76033 million. Further, in 2021, the net profit margin, was at 29.5%, shows an improvement compared the company’s previous years of operation.

As with MSFT, I think we are all more or less familiar with Alphabet. Interestingly, the company had huge revenue growth from cloud segment in 2020 and 2021. Still, most revenue comes from Google Search segment.

Procter & Gamble (PG)

Yacktman Asset Management’s stake value: $525.0 Million

Percentage of Yacktman Asset Management’s 13F Portfolio: 4.7%

Procter & Gamble Co. does business in Soap and Other Detergent Manufacturing industry, which is Manufacturing sector and has 99000 employees. Current CEO is David Taylor.

As of February 08, 2022 Procter & Gamble had a market cap of $384.154 Billion. Analysts predicted 1 year target price of $165.63 that exceeds the current price of $161.12 for 2.8%. Trailing twelve months P/E ratio is currently 28.35 making it a slightly more expensive stock than the rest of the S&P500 index. Regarding revenue, Procter & Gamble generated $76118 million revenue in 2021, mildly increasing of 7.3% in contrast to 2020 when it was $70950 million. Net income was slightly higher than previous year, rising in 2021 by 9.8% totalling $14306 million. Further, in 2021, the net profit margin, was at 18.8%, shows an improvement compared the company’s previous years of operation.

P&G serves consumers around the world with one of the strongest portfolios of trusted, quality, leadership brands. Products are getting to more than 70 countries worldwide.

Conclusion

As you could see, Yacktman Asset Management invests in big and stable companies, but also with growth opportunites. Overall, top 5 securities showed mixed movements, as energy was hit hard in 2020, but Microsoft and Google had great years. In future, these companies could find some balances, as technology stocks could show slower growth, while energy stock can return back to normal business operations. Moreover, with inflation knocking on the doors, Pepsico and Canadian Natural Resources could be tasty stocks to have in portfolio.

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

Stock	% of portfolio	Market Cap (USD)	P/E	Net earnings (USDm)	Net earnings y/y	Profit margin
Pepsico Inc. (PEP)	6.9%	237.996B	29.3	7120	-2.7%	10.1%
Canadian Natural Resources Ltd (CNQ)	6.4%	59.721B	13.0	-435	-108.0%	-2.6%
Microsoft Corp. (MSFT)	6.1%	2.28T	32.4	61271	38.4%	36.5%
Alphabet Inc. (GOOGL)	5.5%	1.834T	24.8	76033	88.8%	29.5%
Procter & Gamble (PG)	4.7%	384.154B	28.4	14306	9.8%	18.8%

You can find the above stocks on Interactive Brokers.

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