On November 19, 2024, Sardar Biglari, a prominent investment firm, executed a significant transaction involving Biglari Holdings Inc (BH, Financial). The firm added 14,065 shares to its portfolio at a transaction price of $271.92 per share. This strategic move highlights the firm's continued confidence in Biglari Holdings, a company with diverse operations across various sectors. The addition of these shares represents a 7.51% impact on the firm's portfolio, bringing the total shares held to 1,378,591. This transaction underscores the firm's commitment to strengthening its position in Biglari Holdings.
Profile of Sardar Biglari
Sardar Biglari, based in San Antonio, TX, is a well-regarded investment firm known for its strategic holdings in various sectors. While the firm's specific investment philosophy is not detailed, its top holdings include El Pollo Loco Holdings Inc (LOCO, Financial), Wynn Resorts Ltd (WYNN, Financial), Coca-Cola Co (KO, Financial), Ferrari NV (RACE, Financial), and Taiwan Semiconductor Manufacturing Co Ltd (TSM, Financial). With a total equity of $47 million, the firm primarily focuses on the Consumer Cyclical and Consumer Defensive sectors. This diverse portfolio reflects a balanced approach to investment, aiming to capitalize on both growth and stability.
Overview of Biglari Holdings Inc
Biglari Holdings Inc, a U.S.-based company, was established on December 13, 1995. It operates as a holding company with segments in Restaurant Operations, Insurance Operations, Oil and Gas Operations, and Maxim. The majority of its revenue is derived from the Restaurant Operations segment, which includes well-known brands like Steak n Shake and Western Sizzlin. With a market capitalization of $647.546 million, the company's current stock price stands at $209.03. Despite being modestly overvalued with a GF Value of $166.46, the company's diverse operations provide a robust foundation for future growth.
Financial Metrics and Valuation
Biglari Holdings Inc exhibits a Price-to-Earnings (PE) ratio of 11.08, indicating a reasonable valuation relative to its earnings. The company's GF Value suggests it is modestly overvalued, with a Price to GF Value ratio of 1.26. Year-to-date, the stock has experienced a price change of 31.36%, reflecting positive market sentiment. However, the company's GF Score of 65/100 suggests poor future performance potential, indicating that investors should exercise caution when considering this stock.
Impact of the Transaction
The recent acquisition of shares by Sardar Biglari has a significant impact on the firm's portfolio, accounting for 7.51% of its total holdings. With 1,378,591 shares now held, Biglari Holdings represents a substantial 44.47% of the firm's portfolio. This strategic positioning underscores the firm's confidence in the long-term potential of Biglari Holdings, despite the current modest overvaluation.
Stock Performance and Growth Indicators
Biglari Holdings Inc has demonstrated modest revenue growth of 0.10% over the past three years, with EBITDA and earnings growth remaining flat. However, the company has achieved impressive growth in its gross margin (20.70%) and operating margin (120.10%). The company's Return on Equity (ROE) is 8.68%, while its Return on Assets (ROA) is 6.04%, indicating efficient use of resources to generate profits.
Additional Stock Metrics
Biglari Holdings Inc's balance sheet is robust, with a Financial Strength rank of 8/10. The company's Profitability Rank stands at 6/10, while its Growth Rank is 1/10, reflecting limited growth potential. The company's cash to debt ratio is 1.15, and its interest coverage is 4.19, indicating a stable financial position. The Altman Z score of 3.26 suggests a low risk of financial distress, further supporting the company's financial stability.
Largest Guru Holding the Stock
The largest firm holding shares in Biglari Holdings Inc is Barrow, Hanley, Mewhinney & Strauss. While the specific share percentage is not disclosed, this firm's involvement highlights the interest of major investment entities in Biglari Holdings, reinforcing its potential as a valuable investment opportunity.
In conclusion, Sardar Biglari's recent acquisition of Biglari Holdings Inc shares reflects a strategic move to enhance its portfolio. Despite the company's modest overvaluation, its diverse operations and stable financial metrics present a compelling case for long-term investment. Investors should consider these factors when evaluating the potential of Biglari Holdings Inc in their portfolios.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
