Doing more and earning better on each one: volume and per-unit economics improving together, from the company's own acti
The model's full reasoning — Q3 2022 call → NOWe need to determine if management conveys both: (1) volume of business rising now, and (2) per-unit economics improving due to company's own changes, presented together as current state. From transcript: They mention loan portfolio growth, client NII growth, fees growth, insurance growth, etc. But also they mention credit provisions increasing, delinquency rising, market NII negative. They talk about adjustments in origination, improving credit quality of new loans, but that is about future improvement. They say "we are now at full speed into reforming the bank" and "we transformed our way of serving clients" but that is general. They mention "client NII continues to expand" and "client NIM also continues to evolve, up 10 bps in the quarter" - that is per-unit improvement? But they also say "net NIM impacted by higher provisioning" so overall not improving. They talk about "improved delinquency ratio, which should pick between first quarter '23 and second quarter '23 and improve thereafter" - that is future. They say "The drivers of our recovering the performance includes, improved delinquency ratio, which should pick..." - that is forecast. They also say "Our profits is expected to remain under pressure for a few quarters, but they should change more consistently in the second half of 2023." So improvement is future. Volume rising: loan portfolio grew 13.6% annual, fees grew, etc. But per-unit economics? They mention "client NII net of credit provision, which is 10% higher compared to 2021" but that is net of provisions, not per-unit. They mention "client NIM also continues to evolve, up 10 bps in the quarter" - that is per-unit improvement in client NIM, but they also say "net NIM impacted by the higher provisioning post the reduction." So overall not. They talk about "origination mix, that has been more concentrated in the short term lines that have higher margins" - that is per-unit improvement due to mix, but that is about new business. They also say "we have reduced appetite for both portfolio" and "we are reducing on an ongoing basis, our origination" - so volume is not rising in the risky segments, but overall loan portfolio grew. However, they are cutting back on low income segments. So volume is rising overall but they are cutting back on some.
| Ticker | Company | Call | Date | Call grade |
|---|---|---|---|---|
| CRGO | Freightos Limited | Q1 2024 | 2024-05-20 | C+ |
| WRBY | Warby Parker Inc. | Q1 2024 | 2024-05-09 | A |
| AZEK | The AZEK Company Inc. | Q2 2024 | 2024-05-08 | B+ |
| CTRA | Coterra Energy Inc. | Q1 2024 | 2024-05-03 | A |
| MNKD | MannKind Corporation | Q4 2023 | 2024-02-27 | C |
| LILA | Liberty Latin America Ltd. | Q4 2023 | 2024-02-23 | C |
| DASH | DoorDash, Inc. | Q3 2023 | 2023-11-01 | C+ |
| GRBK | Green Brick Partners, Inc. | Q3 2023 | 2023-11-01 | B |
| BZUN | Baozun Inc. | Q2 2023 | 2023-08-28 | D |
| IMAX | IMAX Corporation | Q2 2023 | 2023-07-26 | B+ |
| DAL | Delta Air Lines, Inc. | Q2 2023 | 2023-07-13 | A |
| GVP | GSE Systems, Inc. | Q1 2023 | 2023-05-15 | D |
| TGT | Target Corporation | Q4 2022 | 2023-02-28 | C |
| CNA | CNA Financial Corporation | Q4 2022 | 2023-02-06 | B |
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| TMCI | Treace Medical Concepts, Inc. | Q2 2022 | 2022-08-13 | B+ |
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| HPE | Hewlett Packard Enterprise Company | Q2 2018 | 2018-05-22 | B+ |
| LAUR | Laureate Education, Inc. | Q1 2018 | 2018-05-13 | B+ |
| NOVT | Novanta Inc. | Q4 2017 | 2018-05-12 | B+ |
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| ALLY | Ally Financial Inc. | Q1 2018 | 2018-04-26 | B+ |
| HLX | Helix Energy Solutions Group, Inc. | Q1 2018 | 2018-04-24 | B+ |
| TOUR | Tuniu Corporation | Q4 2017 | 2018-03-14 | D |
| UPLD | Upland Software, Inc. | Q4 2017 | 2018-03-08 | C+ |
| INST | Instructure's | Q4 2017 | 2018-02-12 | B+ |
| AVT | Avnet, Inc. | Q2 2018 | 2018-01-25 | B |
| UNH | UnitedHealth Group Incorporated | Q4 2017 | 2018-01-16 | A |
| CPK | Chesapeake Utilities Corporation | Q3 2017 | 2017-11-10 | A |
| HOLX | Hologic, Inc. | Q4 2017 | 2017-11-08 | D |
| RACE | Ferrari N.V. | Q3 2017 | 2017-11-02 | C+ |
| PII | Polaris Inc. | Q3 2017 | 2017-10-24 | C+ |
| IBTX | Independent Bank Group, Inc. | Q3 2017 | 2017-10-24 | A |
| BCE | BCE Inc. | Q2 2017 | 2017-08-05 | B+ |
| CCOI | Cogent Communications Holdings, Inc. | Q2 2017 | 2017-08-03 | B |
| LEA | Lear Corporation | Q2 2017 | 2017-07-26 | B+ |
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| DAN | Dana Incorporated | Q1 2017 | 2017-05-02 | B |
| SHOO | Steven Madden, Ltd. | Q1 2017 | 2017-04-21 | C |
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| SOHO | Sotherly Hotels Inc. | Q3 2016 | 2016-11-08 | D |
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| NDSN | Nordson Corporation | Q3 2016 | 2016-08-23 | A |
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| ESE | ESCO Technologies Inc. | Q2 2016 | 2016-05-03 | A |
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| HD | The Home Depot, Inc. | Q4 2015 | 2016-02-23 | A |
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| HXL | Hexcel Corporation | Q4 2015 | 2016-01-22 | B+ |
SYY · Q1 2023 → YESThe question is whether management conveys TWO improvements happening AT THE SAME TIME: (1) volume of business RISING NOW, and (2) economics or productivity OF EACH UNIT getting BETTER due to company'...YES The transcript shows management describing both rising volume (sales +16.2%, U.S. Foodservice volume +7.3%, local case volume +5.4%, more than 1.4× market growth, net new customer wins) and improving per-unit economics (GP per case grew in all four 5th consecutive quarter; gross profit dollars per case increasing) as already occurring in the current quarter. They attribute the per-unit gains to company actions—strategic sourcing, team-based selling, Sysco Your Way service model, pricing tools, and supply-chain productivity improvements—while also noting inflation pass-through. Management presents these 2 improvements together as the present state of the business (not merely a target), even though OpEx productivity is still below historical levels and expected to improve later in the year. The answer is therefore YES. No other transcript section contradicts the dual improvement being conveyed as current. The question is answered YES.
IMAX · Q2 2023 → YESThe question is whether management conveys TWO improvements happening AT THE SAME TIME: (1) volume of business RISING NOW, and (2) economics or productivity OF EACH UNIT getting BETTER due to company ...YES The transcript shows both volume rising (signings up to 84 YTD vs 47 last year, installations doubled in Q2, box office +8% to $268M, revenue +32%) and per-unit economics improving (gross margins 59%, gross profit +31% with 15% growth 64% margin segment and 42% growth 36% margin segment, SG&A % of revenue down 700 bps to 33%, EBITDA margin 35.4%, driven by mix, profit flow-through, sales/hybrid arrangements, cost discipline, and operating leverage from company actions like programming and system mix). Management presents these as current state, not targets. So the answer is YES. The two improvements are happening simultaneously as described.
NDSN · Q3 2016 → YESThe question is: Does management convey that TWO improvements are happening at the same time: (1) volume of business is RISING NOW, and (2) the economics or productivity OF EACH UNIT are simultaneousl...YES Management describes both rising volume (6% sales growth, 4% organic, strong order rates, 22% backlog increase) and improving per-unit economics (operating margin up 3 points, gross margin up 2 points, incremental margin 77%, driven by volume leverage plus continuous improvement initiatives and the Nord business system) as already occurring in the current quarter. They attribute the per-unit gains mainly to company actions (new products, tiering, Nordson business system, restructuring-enabled improvements) rather than external prices or market conditions. The two improvements are presented together as the present state of the business.