LSAF LeaderShares AlphaFactor US Core Equity ETF

LeaderShares AlphaFactor US Core Equity ETF (LSAF) currently reports 101 stock positions (subject to change), placing it in the broad-based range by holdings breadth. The top line-up is APA (1.70%), TER (1.49%), OVV (1.49%), with APA as the largest single weight at 1.70%. Together, the top three holdings account for 4.68%, which does not represent a dominant share, indicating less concentration in the very top of the book. The overall construction balances concentrated exposure at the top with broader diversification through the rest of the book.

Through the lens of capital efficiency, ROIC is 22.29%, WACC is 8.45%, and the economic spread is 13.85%. On balance, the gap between operating returns and funding costs is healthy, pointing to businesses with genuine pricing and reinvestment advantages. Supporting metrics show ROE at 24.49% and ROA at 7.60%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a portfolio with credible compounding capacity if current operating execution persists.

Assessed on a multiple basis, trailing P/E of 17.93, forward P/E of 13.33, PEG of 1.77. Forward P/E tracks closely with trailing P/E — a sign that the market sees the current earnings run rate as a reasonable baseline going forward. Growth-adjusted, the multiple is in an acceptable range — the portfolio is neither pricing in perfection nor offering a meaningful valuation discount. The portfolio's weighted current ratio of 2.06 reflects adequate near-term financial stability. Overall, the valuation setup reads as a balance between expected growth and execution risk, with liquidity acting as an important stabilizer if macro conditions become less favorable.

The margin profile breaks down as follows: gross margin sits at 46.98%, operating margin at 16.96%, and free cash flow margin at 16.94%. Gross margins are in good shape, suggesting the holdings maintain pricing discipline at the revenue-to-cost interface. Operating margins are solid, reflecting adequate cost control relative to the revenue base. The portfolio's FCF margin is healthy, indicating solid cash conversion after capital expenditure needs. The mixed margin profile here calls for selectivity — the portfolio's quality of earnings is not uniform across the holding set.

The growth and outlook picture reads as follows: TTM revenue growth of 6.08% pointing to reasonable revenue execution across the underlying holdings. In parallel, analysts project moderate appreciation over the next 12 months based on current consensus targets. The gap between trailing fundamentals and forward expectations matters most at inflection points — and the current environment is not without those. For long-term holders, the central question is whether today's execution quality is a leading indicator of what's already priced into analyst targets. The estimated 12-month price change is a weighted composite of analyst price target estimates adjusted by each holding's ETF weight, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

The data points reviewed collectively point toward a positive outcome if execution holds — the setup is favorable even accounting for the inherent uncertainty in forward estimates.

These findings are based solely on the metrics presented and do not constitute an investment recommendation. Always perform your own due diligence before committing capital.