Tenneco Inc.
Thesis
Tenneco is positioned to benefit from increasingly stringent emissions standards and enforcement, which will drive demand for its emissions reduction products. The company has a strong market share and is expected to grow its organic revenues faster than vehicle unit volumes due to significant per-vehicle content additions. Additionally, Tenneco's share repurchase program is expected to boost EPS in the near term, and the company has opportunities in adjacent markets.
Did it work?
The long thesis for Tenneco was based on expected growth from emissions standards and share repurchase programs, but the stock has declined by 15.1% over 131 months, indicating that the anticipated benefits did not materialize. The significant drop in price suggests that the company's performance did not meet the expectations set forth in the thesis, leading to a failure of the investment thesis.
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