0:00 Guys, there are four companies right now selling near their 52- week low, and the stock prices look like they might be selling at very cheap prices. I'm going to break down the story behind each company, the valuation metrics I rely on, and the price that I would pay based on the assumptions that I'm going to make that would get me interested. Because remember, investing isn't just about what you buy. It's about what you pay. That's actually far more important. And even more important in this video, I'm giving you the tools and principles that you will not hear anywhere else on YouTube. So that next time you analyze a stock, you're going to have an edge over 99% of investors out there. Now guys, why do I look at 52- week low stocks? Just because something is cheaper does not make it cheap. But it's a great place to start because if something's
0:46 already fallen, it maybe means that sentiment has changed on it. And if sentiment has changed, it means there might be an opportunity to take over a overreaction and buy a company that has fallen in price. Now, don't forget though, just because a stock is at a 52- week low does not mean that it cannot go lower. Guys, we've seen this happen countless times. A good investor is someone that looks at a company, buys it as it falls when it makes sense, and if it falls further, they re-evaluate, and if it still makes sense, they buy more. It is very difficult. But remember Pier Lynch, he said before, I've bought stocks at 12, bought them all the way down to two, and then watched them go to 50. That's the hard part about investing. And every great company you see today has fallen dramatically at some point, but it was still a buy as it
1:32 was falling. So, the first stock we're going to go through is Domino's Pizza. They're currently trading at $370 a share right now, near its 52- week low and down almost 15% over the past year. The big issues are margin compression from higher insurance, labor, and food costs. Plus, international same store sales only grew 0.7% last quarter, which really disappointed a lot of people. And on top of that, you had executives selling shares, which never makes investors feel good. But here's the thing, the US business is actually really strong. Domino's has over 30% market share in pizza delivery and their promotions and carry out growth keep pulling in customers. And by the way, Birkshar Hathaway owns a big stake in
2:18 this company. Domino's just raised their dividend 15% and they're planning to open around 800 new international stores in 2026 and they're expanding into third-party delivery platforms like Uber Eats and Door Dash. The free cash flow is still incredibly strong and the fundamentals haven't really changed. It might just be that the sentiment has just been beaten up just a smidge too much. So this is a $12.7 billion company. That's the real price of the business, not $370 a share. The market cap is the price of the business. It generated $670 million in free cash flow last year, 523 a year for the last five years. So it's currently selling for about 19 times free cash flow. Okay. in and of itself doesn't tell him anything. It just says, "Hey, listen. Right now,
3:04 for every dollar of earnings, you got to pay 19 bucks for it. That could be cheap if they're going to grow their free cash flow immensely. That's what we're here to try to figure out." Net income a little bit lower than free cash flow. And I'm okay with that, guys. I'm really okay with that. On the one-year level, the 5-year level, they're pretty much even. In fact, net income just a little bit higher. Profit margin. Now, look at this, guys. 11% 11.2% 2% a year for the last 10 years, 11.6 for the last five, 12.18 for the last one year. Pretty good. Growing their profit margin, gross profits around 40%. And look at their growth rate. Nothing to write home about. And I'm okay with that. We don't need massive growth to make a lot of money. You just need a factor in your growth, which is the first line of our stock analyzer, which we'll get to soon,
3:51 that allows you to understand, okay, where is this company growing? What's it going to do if I make conservative and aggressive assumptions? What does it look like? Now, they pay this dividend, which they just increased, of 1.85%. Which eats up 40% of its free cash flow. That's that to me is fine. And um what's interesting to me is the negative return on invested capital. All right, guys. So, let's go take a look at the eight pillars here. Not exactly the sexiest. Shares outstanding down a little bit. Cash flow is up, revenues up, net income's up. A lot of debt. Now, a lot of this debt to look into that because I want to understand how many Dominoes locations do they own versus, you know, all these other things. How many are franchises? Because it is a lot of debt here. If it's not franchise, if it's not
4:37 leases on buildings because I don't know how many stores they own. This the question you should ask. Now, guys, I'm throwing a lot out here. If you're new to this, you will feel overwhelmed and that's okay. You're not alone. Everyone in the history of the world was overwhelmed at some point. It's just about getting better one bite at a time. Understand these metrics. The good news is I have an easy cheat sheet for you that'll allow you to speak the same language as me about our key metrics. Click the link below. We will send you our key metrics PDF. It'll describe all of these the equations and why they matter. This is exactly why I teach on YouTube. I was sick of people being so attached to just a story and not understanding that there's a right price to pay for it. And guys, I've met with Goldman Sachs bankers who didn't understand this metric. So when I hear people say like, "Oh, it's all the smart
5:22 people." No. Everyday people are the ones who get it. In a few minutes, I'm going to do something with you that not many people do, which is to actually determine what the right price to pay for this company is. But let's go to analyst estimates real quick, guys. A lot of positivity here. 1974 per share in profit this year growing to 29.84. That's pretty much an average of double digit growth every single year. And revenue, I'm actually surprised this is high. 6.2, 4%, 6.2, 5.8, 5%. Which is a lot lower than their two and their one and fiveyear numbers that we've had previously. So take that in consideration going forward. So guys, it takes us to our stock analyzer tool. What is the right price to pay for
6:08 Domino's Pizza? So here we are. I've sat there and made a 10-year analysis. And here are my assumptions going forward. 2, 4, and 6% revenue growth. Profit margin of 10, 11, and 12%. PE of 13, 16, and 19. Now, the big thing, guys, here is a lot of people ask about the PE. Don't compare the PE to the past PE. It's about starting with the market average of 15 or 16, going up for good companies, down for bad companies. I think I'm being conservative here on 13, 16, and 19. I'm going to change this to 14, 18, and 22. And the reason being is this company has a long track record. It has 30% of the market. These are good things in 40% gross margin. I like these things a lot. And then finally, what is my what is my desired return? Now guys,
6:53 for the sake of the videos, I'm always looking for intrinsic value. What is the company worth? So I put in 9%. If I was buying this for myself though, I'd want a higher return. That would give me margin of safety. You need margin of safety when you buy individual companies because we're humans and we make mistakes and the future is unknown. We are making guesses about the future here, but we don't really know if those guesses are going to be right or not. So, I hit the analyze button. Boom. I have a low price of 200, high price of 430 30 and a middle price of 295. So, for me guys, and by the way, these these current price returns include the dividend. So, don't add the dividend on top of this. But for me right now, I don't see the desire to own it right now at these prices. For me, I would, if I
7:40 wanted to own Dominoes, I'd add it to my watch list at a price that reminded me in the future, hey, go take a look. Now, before I get to the next company, I want to remind everybody, do not take our titles literally. We play the YouTube game. I don't even know what the name of the title of this video is, and it's probably changed five times since you saw it or before you saw it. Just know we're here to get your attention and then teach you the lesson going forward. Now, most investors are going to lose money because they're trying to pick the next huge winner. The best investors do the opposite. They eliminate the losers first. That's what we're doing here when we analyze a stock. And the most important way to lose a to avoid a loser is not overpaying. But it's the thing people focus least on. That's what we're here to switch around. All right. Our second stock is Home Depot and they're trading around $320 per share near its
8:28 52- week low all the way down from a high of over$426. The biggest reason is the housing market has slowed down and people have locked in those amazing sub 3% mortgage rates and they're not moving, which means less moving and renovating. With that said, as people stay in their houses, they are more likely to renovate. I personally believe the drop in revenue and the problems they've had are more driven by the consumer right now and their fear of the economy. On top of that, Home Depot has actually revised their earnings guidance down. But here's what's interesting. They're going really hard after the professional contractor market, which is growing faster than the do-it-yourself side, and they bought a company called SRS Distribution to get even deeper into that space. They're also rolling out AI tools for contractors and they just raised their
9:15 dividend for the 156 consecutive quarter, not month, quarter. So, the free cash flow is still strong, guys. That's 39 straight years of dividend increases. So, for those you love dividends, that's something that's going to be very attractive. This might be one of those situations where the stock is beaten up short-term, but the long-term story is still very much intact. But what matters most, like always, price versus value. So, let's go analyze the numbers right now. All right, guys. So, this is a $323 billion company that generated 14 billion in free cash flow last year, down slightly from their 5-year average of 14.12. Um, their net income's a little bit higher than that, but not enough to make me like feel alarmed. They pay a big
10:01 dividend, and that big dividend of 2.8% that they're very well known for doing eats up 9 billion of their cash flow. That's a lot, guys. That's 9 billion out of 14 billion last year and a 14 billion for the last 5-year average. That's a big chunk of money. Returns on capital are great. We've got profit margins very consistent in the 9 to 10% range. We got a gross profit lower than Domino's Pizza at 33.32%. And guys, look at this revenue growth. Not much. One and a half percent for the last three years, four and a half% for the last five, six and a half% for the last 10. So guys, a lot of uh this revenue drop has affected their growth levels, but let's check it out even further. Let's go to the um eight pillars.
10:46 Okay, so cash flow is down like we talked about. That's pretty impressive. If you added the $4 billion in there, it'd still be increasing cash flow and their fiveyear price of free cash flow slightly higher than it should be. But remember, I believe Home Depot is a premium company, so this might be okay. So, they're very close to being an eight-pillar company, but remember, we're not here to buy because it's eight pillars, checks, anything like that. We're here to tell a story. This story tells me they having a short-term cash flow drop. Is that going to be permanent? I don't think so, but it's something to look into further. So, let's see what analysts have to say about this company. Almost a 50% growth in earnings per share over the next 5 years. That's 4%, 9%, 8%, 9%, and 8% growth. So, not a grower. Definitely not
11:31 growing fast, but a lot of progress there. And their revenue growth about not what I expect. Three and a half, four, four and a half, four and a half, two and a half, four percent. Guys, this is kind of company that's going to grow with inflation with the economy. So that's basically what I I look at and think to myself, okay, makes sense here. So we have the story, we have some of the numbers. Let's put it together in our stock analyzer tool. We're doing a 10-year analysis. revenue growth of two, three and a half, and 5%. Profit margin and free cash flow margin. I did nine, 9.75, and 10 and a half. Even though it's been trending down, I think that's temporary. PE 17, 20, and 23. And again, my 9% desired return. We're going to hit the analyze button. If you've ever sold a stock too early or held on for too
12:17 long or bought something and immediately wondered if you made a mistake, that's what investing without a process feels like. And we've all done it. This is why everything Moneyu built software that gives you the right process. Our stock analyzer tool will help tell you what a stock is worth based on your assumptions and the price that makes sense for the return that you want and need. The eight pillars check whether the business is actually strong. You make your decision. You know why, and you sleep well at night. The second guessing stops. You're not reacting to every headline or chasing every dip. You're following a process that works. And that changes everything about what the feeling for investing actually should be. When it comes to investing, more is not necessarily better. With our tools, you can walk away in minutes or an hour with
13:03 much better clarity and a much better feeling about what you're buying rather than FOMO or somebody else bought it. So, start your 7-day trial for just $7. Click the link in the description below and get access today. The stocks at 325. Okay. I have a low price of 230, high price of 405, middle price of 305. Guys, I currently have my watch list at 275. I'm actually going to increase that to 300. And the reason being is I think at 300, it would allow me to sit there and look at it further and sell cash secured puts on lower prices. Now, for me personally, my desired return has jumped up a lot lately because of my changes in life and my realization that the vast majority of my net worth is in businesses and real estate. So, for me,
13:50 I can be pickier with my stocks. That's what works for me. Remember what Morgan Hel says, personal finance is more personal than finance. So, the price point of which you buy, the desired return of which you want is going to be different than me and different than the other 50,000 people who are going to watch this video. Stock number three, Berkshire Hathaway. They're nearing they're trading close to their 52- week low, and the stock just had its longest losing streak in over seven years. The big reasons are a rough fourth quarter. Insurance underwriting came in weak, and they took a massive $3.8 billion writedown on their craft hind stake, and investors are getting nervous about what happens when Warren Buffett fully steps away. Now, he's still in the office. He's still going to work. Greg Ael still talks to him on a daily basis, but of
14:36 course Warren Buffett's 95 years old, so times a ticking. Now, on top of that, revenue growth across a lot of their subsidiaries is slowing, and the broader market is pulling everything down with rising energy prices and global uncertainty. But here's what you can't ignore. This company is sitting on over $370 billion in cash, which means they have a massive war chest to go shopping when opportunities show up. That's what Buffett has always done and what Buffett said last week of that Bergkshire will do. They plan to wait for moments when everyone else is panicking and prices are low compared to their value. How low guys, Buffett even came out and said five or 6% is nothing. That's not a pullback. That's not fear. This is something we say on our channel. We want to repeat this. Now, when it comes to analyzing this company, this company has
15:22 insurance, has banks, has a lot of subsidiaries. For me, understanding it isn't about looking at a profit and loss statement because you got to also remember the way the SEC and IRS want things reported now. When a stock they own goes up, they have to report that as income. That's not really income. When it goes down, has to report it as a loss. That's not really a loss. It's only income and a loss when it's bought and sold. Buffett and Munger have said this before that they don't agree with this. What they have talked about was book value and they've said they've been buying the stock as of late. One thing interesting is they said we believe in buying the company in the past they've said at 1.2 times book value or below. So I'm here to show you what that is. Book value is very simple. Assets minus liabilities. The market cap of the company is currently $1 trillion. So 1
16:10 trillion divided by 1.2 that equals $833 billion. So basically if assets minus liabilities are less than 833 billion Buffett and Munger believe in buying it. So how do we find out assets and liabilities? We go to the balance sheet assets 1.22 trillion liabilities 500 billion which is a total of $700 billion market cap. So according to them 700 billion times 1.2 is $840 billion. They'd be buying the stock back if the if the market price was less than 840 billion. With that said, I think they've been buying back lately because the business has changed a lot and it is becoming more and more about cash flow and they've probably increased that number quite a bit. They're probably wondering
16:55 if that's the best use of the cash as stocks are so far high. So, what you do with that information is up to you. Will I be a buyer of Brookshshire Hathway at some point in the future? Yes. Does it have to be really cheap relative to value? Yes. I'm looking for a massive discount. I believe that in the next bare market, Birkshshire will be the recipient of a big drop in price because that's just what happened in bear happens in bare markets. It drags everything down. Now, our final stock, good old Qualcomm, ticker QCOM. It is near its 52- week low, down over 25% in just the last three months. The biggest problem is that over 60% of their revenue comes from smartphone chips, and that market has slowed down considerably. People aren't upgrading as fast. Demand is soft. And on top of
17:42 that, Apple is building their own chips, which means Qualcomm's revenue from Apple is expected to drop from about 7.2 billion down to 1.9 billion by 2027. You've also got MediaTek eating into their Android market share. China exposure creating headaches with trade restrictions. And multiple analysts have downgraded the stock this year. But here's where it's getting interesting. Qualcomm is a $45 billion automotive design win pipeline. And they're trying to become basically the Android of cars powering digital cockpits and connectivity. And that automotive revenue is already growing over 15% year-over-year. They're also pushing hard into device AI with their S Snapdragon X chip for PCs. And they just announced a $20 billion share repurchase
18:29 plan and raised the dividend, which tells you that management believes in what's coming. At roughly 12 or 13 times forward earnings, this stock is priced like the future is terrible. But if automotive and AI start hitting their targets by late 2027, that valuation could rerate in a big way. But for long-term investors who can handle the volatility, this might be an opportunity. That's what we're going to find out now as we run the numbers. Guys, I want to repeat those are some scary stories at the start of Qualcomm. But remember, rarely do companies go to zero. The question is, can they replace the loss of Apple and the China market with the automotive and AI stuff? That is the question we have to ask. So $136
19:15 billion market cap for a company that generated $13 billion in free cash flow and 10 time 10 billion in fiveyear free cash flow. Look at this one-year net income 5.37 billion versus 13 billion in free cash flow and the 5year net income of 9 billion versus a 10 billion free cash flow. It's selling for 10 and a half times last year's free cash flow and 13 times 5year free cash flow. And the good news is this dividend of 2.8% 8% only eats up 3.8 billion of their 13 billion in free cash flow. That is awesome. High returns on capital, great gross profit of 55%. Profit margin though, look at how inconsistent this is, guys. 18.5% fiveyear profit margin of 22 and a half, one year of 12. Is
20:01 this that short-term drop? Probably. So, it could be on its way up for higher um profit margin. Three-year growth rate on revenue only one and a half% a year. only one and a half percent a year. Fiveyear is 11%. And in that fiveyear time period where they grew 11% per year, they made a net seven and a half billion dollars in acquisitions. That probably doesn't tell me that it's done enough to to be the big chunk of that 11% growth, but it's still something to look at. Our community members currently have this stock as a hold. Let's go check out the eight pillars. Surprisingly, guys, it is only seven out of eight check marks because net income is down, which makes sense when we see the big drop in net income here from its five-year average. So, guys, I mean, this is pretty interesting stuff. And you have the $20 billion buyback. If the
20:47 stock stayed the same price today, that'd be buying back almost 15% of the company right now. For those of you who are new to stock buybacks, that's a reward for investors that currently are there as long as they're paying a cheap price. As long as the company's buying back cheap shares, which it here's my point. If I knew for sure that their free cash flow would never be lower than 13 billion, I'd be all in favor of this buyback. But if this Apple and China stuff really affects their free cash flow, it might be an expensive price even though the ratio is currently low. So that's something to consider going forward. Let's see what analysts think. Well guys, analysts don't seem very concerned. Earnings per share 1223 going to $17 over the next four years. That is still growth 2 51 18 and 9%. So they
21:36 don't seem that concerned. And look at revenue here. Yeah, it's going to be flat for two years according to analysts, but then back to growth levels in the future going from 44.5 billion to 57.5 billion in the next four years. Now remember, analysts don't know everything, but the point is analysts know these stories about Apple and AI and the China issue, but they still seem optimistic here in terms of the other factors of the business that would grow the company. So, what is the right price to pay for Qualcomm? Last time I had Qualcomm was about a year ago. I did a 10-year analysis. I did three, six, and 9% revenue growth. I did profit and free cash flow margin of 19,22 and 25. But keep in mind, guys, look at this. Free cash flow is always higher than their net income. I still equated them out and
22:22 I think I'm giving them the lower number of the two. Keep that in mind as well. What PE 10 years from now? I did 15, 17, and 19. Might be a little conservative based on the returns of capital. I think I'm going to go a little bit higher. 15, 18, and 21. And finally, my 9% desired return. The stock is currently at 126. I hit the analyze button. All right, guys. I have a low price of 120, high price of 311, middle price of 200 with a with a current IRRa based on free cash flow and my assumptions of 15.3% including the dividend. Now, before you go, I picked seven stocks. Seven stocks that I personally believe will beat the markets mag seven over the next decade. We've been going a head-to-head for a
23:09 full year now, and we just dropped a brand new update on how they're doing. And trust me, the results are going to surprise you. So, click the video on your screen right now to check it out.
