Quick Value #237 - Special Situation
Recently completed split-off; this large cap trades at 8.5x FCF with meaningful FCF growth on the horizon
Welcome to Quick Value
Every few weeks I’ll repost this reminder on what Quick Value is all about… Each week I’ll cover a stock on my watchlist in a Quick Value review. Here’s the scoop:
Idea generation — The goal is to keep the new idea process churning by working the watchlist. These are meant to be a jumping off point for deeper research (i.e. a surface level review).
Format — My format is similar to Steinhardt’s 4 questions: what they do, why it’s interesting, and what it’s worth. [Technically, Steinhardt’s were: the idea, consensus view, variant perception, and catalyst.]
Weekly posts — Covers 1 new idea each week and rotates between free and premium posts. Premium posts lean toward micro/small caps and special sits.
Coverage focus — You’ll see lots of special situations (including virtually every spin-off) and an emphasis on small caps.
Past ideas — Check out past ideas here to get a feel for what’s been covered.
Today’s idea:
Shares are cheap — trading at 8.5x FCF / 7x EBITDA
Recently completed split/merger which simplifies capital structure
Share cannibal repurchased 48% of shares since 2013 (6.2% CAGR)
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