ISS EVA Research Roundup: July 31st, 2025

Weekly Research

Names in the News: V and EA (report)

This week, we cover two large cap ‘Expensive but Worth It’ U.S. names, V and EA. The firms published their quarterly release on Tuesday and reported better than expected earnings. V’s earnings beat estimates on strong growth in international payments volume. EA also posted strong numbers, with EVA Momentum now on the verge of inflecting positive, supported by strong growth in the PC segment.

Tariff, Growth, and Valuation Concerns: Underperformance Inevitable for India? (report)

Amidst slow progress on the trade deal and the recently announced 25% tariff by U.S. President Trump on Indian goods imports, we look at India through the EVA lens to see how equities in the country look at this stage and what has historically worked over the short- to long-term. We also look at some of the major BRICS economies to see how the grouping has fared in the past from an EVA perspective.

Europe: Screen of Attractive Names after Tariffs (report)

With the announcement of a trade deal between the European Union and the U.S. on July 27, 2025, we look to see which European names may look the most attractive given the imposed 15% tariffs. To determine the list, we looked at the average market return from July 26, 2025, to July 30, 2025, for all European Union companies under coverage. We then computed the average return for each industry, as well as the median return of all companies. Industries with average returns greater than the median return were considered more tariff resistant.

Global Beverages: EVA Fundamentals Still Searching For A Bottom (report)

The Global Beverages industry has seen both the level, and the trend of economic profitability face downward pressure over the last two years with large cap companies reporting declining volumes in the North American and European markets across all three segments of the industry: Soft Drinks & Non-alcoholic Beverages, Brewers, and Distilleries & Vintners.

Industry Snapshot: Global Property & Casualty Insurance (report)

On average, Large Cap firms look attractive in the PRVit framework with strong EVA Fundamentals in the last quarter. EVA Margin and EVA Momentum dipped in Q1 2025 but have inflected up at the end of Q2 2025. Both metrics are above their longer-term averages. Investors had been pricing in a decline in profitability at the beginning of the year but are now expecting incremental growth.

Better World: Good Growth for a Better World, Global ex U.S. (report)

We identify attractive names in our Global ex U.S. Large Cap universe with strong EVA growth scores (Profitability Trend, P2), attractive PRVit, and strong ESG Performance Scores. The PRVit framework compares a firm’s operational Quality to the Value paid in the market: the greater the disconnect between Quality and Value, the more favorable the stock.

Better World: Good Value for a Better World, Global ex U.S. (report)

We search for firms with cheap Value scores and strong ESG Performance scores within the Global ex U.S. Large Cap universe. Along with the picks, we include an update for our previous reports. These updates include a flag to indicate whether the firms continue to meet the criteria.

Quant Report

Quant Corner: July 31, 2025 (report)

PRVit spreads were positive in AxJ, Japan, and the Emerging Markets through the final week of July. Quality continued to struggle everywhere. Cheap Value outperformed expensive Value in all regions except the U.K.

Chart of the Week

We saw the Value trade pick up in June and the trade continued to work through July. The Chart of the Week shows cheap firms outperforming expensive firms across all regions except the U.K. On the flip side, Quality (P-R) continued to struggle through July, with all regions seeing negative spreads for the factor. See this week’s Quant Corner for more results.

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Originally Posted on July 31, 2025