A $300m US Operating Business for Free

The operating cash flow is positive and it's currently priced below TBV.

Introducing today’s stock:

NCAV Ratio = 2

TBV Ratio = 0.9

EV/5Y FCF Ratio = 4

P/5Y FCF Ratio = 5

This is an interesting business because it is another beneficiary of the COVID boom.

Revenues went through the roof, cash rained down from every direction and they’re now using that cash to permanently expand the business.

I find this type of situation regularly as I sift through the markets.

I wrote other (smaller) examples here, and here.

This particular stock has some interesting characteristics:

It’s sitting on a pile of highly liquid assets and tangible property, which is 91% of the market cap.

Its operating cash flow has been positive for the last two years, and continues to be profitable on a TTM basis in 2025.

They have been furiously using their COVID cash to expand their business and increase revenues.

So far, they have managed to grow revenues almost 10x from pre-COVID levels.

So, stripping out the COVID boom completely, this business has refocused, invested and grown its core business beyond recognition.

These ‘new’ revenues have also grown around 10% since 2023 too. What’s more encouraging is that the growth re-accelerated during Q3 2025.

The growth plan seems to have traction.

The current price implies that the operating business is worth virtually nothing.

At this stage, you’re simply paying for the tangible assets and getting the profitable operating business for free.

The only question we have to answer is whether or not the business has an operating business worth ‘something’, or whether it will just wither away into a liquidation.

After researching this business for quite a while, it seems to me that this is a mispricing and that the business is definitely not dying.

In fact, it seems to be thriving.

Let’s dive in…