Clayton, Dubilier & Rice, LLC recently filed their 13F report for the fourth quarter of 2022, which ended on 2022-12-31.
The 13F report details which stocks were in a guru’s equity portfolio at the end of the quarter, though investors should note that these filings are limited in scope, containing only a snapshot of long positions in U.S.-listed stocks and American depository receipts as of the quarter’s end. They are not required to include international holdings, short positions or other types of investments. Still, even this limited filing can provide valuable information.
Clayton, Dubilier & Rice, LLC is a private equity firm based out of New York City, New York. The company was originally established in 1978 by “Joe Rice, a former corporate lawyer from Sullivan & Cromwell and former investment banker; Martin Dubilier, a former McKinsey & Company partner and experienced corporate executive; Gene Clayton, a well-known crisis manager; and Bill Welsh, also a proven operating executive from Raytheon” and is one of the oldest private equity firms in the world. Clayton, Dubilier & Rice has grown from its inception to now operate with 80 total employees of which 50 are investment professionals. The company conducts its research internally, allocating its assets in companies based in North America and Europe with a special focus on developed countries and large corporations. Clayton, Dubilier & Rice invests almost exclusively in the industrials and materials sectors, although it does also invest in the consumer discretionary sector to a lesser degree. The industrials sector allocation makes up just over half of the company’s total allocations while the materials sector allocation makes up just under half of its total allocations. Clayton, Dubilier & Rice holds its allocations an average of 2.5 quarters and, in the most recent quarter, had a turnover rate of approximately 50%. The company’s top holdings include Univar Inc., which makes up over two fifth of its total asset allocations alone, NCI Building Systems, Inc., which makes up another third of its allocations, and Beacon Roofing Supply, which makes up over a fifth of its allocations. Outside of the previously mentioned three top holdings, the company does not have any holdings that are above 1% of its total holdings. Clayton, Dubilier & Rice currently manages over $15.5 billion in total assets under management spread across 26 accounts, all of which are discretionary. The company caters exclusively to pooled investment vehicles.
As of the latest 13F report, the guru’s equity portfolio contained 7 stocks valued at a total of $7.04Bil. The top holdings were AGL(44.59%), CNM(44.08%), and BECN(11.23%).
According to GuruFocus data, these were Clayton, Dubilier & Rice, LLC’s top five trades of the quarter.
Cornerstone Building Brands Inc
The guru sold out of their 62,166,573-share investment in NYSE:CNR. Previously, the stock had a 13.45% weight in the equity portfolio. Shares traded for an average price of $24.57 during the quarter.
On 01/31/2023, Cornerstone Building Brands Inc traded for a price of $24.66 per share and a market cap of $3.14Bil. The stock has returned 49.18% over the past year.
GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 7 out of 10.
In terms of valuation, Cornerstone Building Brands Inc has a price-earnings ratio of 4.13, a price-book ratio of 2.31, a price-earnings-to-growth (PEG) ratio of 1.25, a EV-to-Ebitda ratio of 3.92 and a price-sales ratio of 0.53.
The price-to-GF Value ratio is 1.07, earning the stock a GF Value rank of 3.
Agilon Health Inc
Clayton, Dubilier & Rice, LLC reduced their investment in NYSE:AGL by 11,337,500 shares. The trade had a 2.19% impact on the equity portfolio. During the quarter, the stock traded for an average price of $23.95.
On 01/31/2023, Agilon Health Inc traded for a price of $20.61 per share and a market cap of $8.49Bil. The stock has returned 34.44% over the past year.
GuruFocus gives the company a financial strength rating of 8 out of 10 and a profitability rating of 1 out of 10.
In terms of valuation, Agilon Health Inc has a price-book ratio of 7.81, a EV-to-Ebitda ratio of -84.15 and a price-sales ratio of 3.42.
Core & Main Inc
Clayton, Dubilier & Rice, LLC reduced their investment in NYSE:CNM by 11,000,000 shares. The trade had a 2.17% impact on the equity portfolio. During the quarter, the stock traded for an average price of $23.37.
On 01/31/2023, Core & Main Inc traded for a price of $21.43 per share and a market cap of $3.69Bil. The stock has returned -8.61% over the past year.
GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 4 out of 10.
In terms of valuation, Core & Main Inc has a price-earnings ratio of 10.20, a price-book ratio of 2.17, a EV-to-Ebitda ratio of 5.99 and a price-sales ratio of 0.83.
Beacon Roofing Supply Inc
During the quarter, Clayton, Dubilier & Rice, LLC bought 103,931 shares of NAS:BECN for a total holding of 14,878,067. The trade had a 0.06% impact on the equity portfolio. During the quarter, the stock traded for an average price of $56.66.
On 01/31/2023, Beacon Roofing Supply Inc traded for a price of $54.18 per share and a market cap of $3.53Bil. The stock has returned 1.27% over the past year.
GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 7 out of 10.
In terms of valuation, Beacon Roofing Supply Inc has a price-earnings ratio of 9.96, a price-book ratio of 1.93, a price-earnings-to-growth (PEG) ratio of 1.69, a EV-to-Ebitda ratio of 7.45 and a price-sales ratio of 0.46.
The price-to-GF Value ratio is 0.84, earning the stock a GF Value rank of 7.
Covetrus Inc
During the quarter, Clayton, Dubilier & Rice, LLC bought 15,436 shares of NAS:CVET for a total holding of 33,732,300. The trade had a 0% impact on the equity portfolio. During the quarter, the stock traded for an average price of $17.78.
On 01/31/2023, Covetrus Inc traded for a price of $20.99 per share and a market cap of $2.94Bil. The stock has returned 4.74% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 5 out of 10.
In terms of valuation, Covetrus Inc has a price-book ratio of 1.95, a EV-to-Ebitda ratio of 19.71 and a price-sales ratio of 0.62.
The price-to-GF Value ratio is 1.07, earning the stock a GF Value rank of 3.
Please note, the numbers and facts quoted are as of the writing of this article and may not factor in the latest trading data or company announcements.
When GuruFocus covers insider information, we only track open market or the private purchase and sale of common stock with the transaction code of P or S. Therefore, all the transactions mentioned in this article are only the ones with transaction code of P or S.
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