On November 22, 2024, a significant transaction was executed by Sardar Biglari, a recognized market expert and influential figure in the investment world. The transaction involved the addition of 2,426 shares of Biglari Holdings Inc. (BH, Financial) at a price of $208.77 per share. This move highlights a strategic decision within the firm's portfolio, reflecting Biglari's continued confidence in the company's potential. The acquisition increased the firm's total holdings in Biglari Holdings Inc. to 1,381,017 shares, marking a 0.18% change in the firm's holdings and a portfolio impact of 1.06%.
Profile of Sardar Biglari
Sardar Biglari is a prominent figure in the investment community, known for a firm-based investment approach that emphasizes long-term value creation. The firm, Biglari Holdings Inc., is headquartered in San Antonio, Texas, and focuses on sectors such as Consumer Cyclical and Consumer Defensive. Biglari's investment philosophy is reflected in the firm's diverse portfolio, which includes top holdings like 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).
Overview of Biglari Holdings Inc.
Biglari Holdings Inc. is a diversified holding company with operations spanning various industries, including restaurants, insurance, oil and gas, and media. The company's primary revenue source is its Restaurant Operations segment, which includes well-known brands such as Steak n Shake and Western Sizzlin. The firm is structured to leverage its diverse business segments, which also include Abraxas Petroleum, First Guard, Maxim, Southern Oil, and Southern Pioneer, to drive growth and profitability.
Financial Metrics and Valuation
Biglari Holdings Inc. currently has a market capitalization of $644.172 million and a stock price of $206.41. The stock is considered modestly overvalued with a GF Value of $166.46, indicating a Price to GF Value ratio of 1.24. The stock's [GF Score](https://www.gurufocus.com/term/gf-score/BH) is 66/100, suggesting poor future performance potential. Key financial metrics include a PE ratio of 10.94, a return on equity (ROE) of 8.68%, and a cash to debt ratio of 1.15. These metrics provide insight into the company's financial health and valuation.
Market and Industry Context
Operating within the restaurant industry, Biglari Holdings has a [Financial Strength](https://www.gurufocus.com/term/rank-balancesheet/BH) rank of 8/10 and a [Profitability Rank](https://www.gurufocus.com/term/rank-profitability/BH) of 5/10. The stock has shown a year-to-date price change of 29.71% and an IPO price change of 2,439.39%. The company's [Operating Margin](https://www.gurufocus.com/term/operating-margin/BH) growth is notable at 120.10%, reflecting its ability to manage costs and drive profitability. The [Altman Z score](https://www.gurufocus.com/term/zscore/BH) of 3.25 indicates a relatively low risk of bankruptcy, while the [Piotroski F-Score](https://www.gurufocus.com/term/fscore/BH) of 7 suggests a strong financial position.
Conclusion and Implications for Investors
The recent transaction by Sardar Biglari underscores a strategic move within the firm's portfolio, highlighting confidence in Biglari Holdings Inc.'s diversified business model. While the stock is currently modestly overvalued, value investors may find interest in its current valuation and the firm's potential for long-term growth. The firm's diverse operations and strategic acquisitions position it well for future opportunities, making it a noteworthy consideration for investors seeking exposure to the Consumer Cyclical and Consumer Defensive sectors.
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.
