0.5x EV/FCF, and still paying dividends

This stock has an average dividend yield of over 16% over the last 18 years, at todays price.

Some businesses wear their bruises like badges. This one’s got a black eye and a fat lip, but still walks with £400M in its wallet.

Here’s the setup:

A mid-sized business with a decades-long pedigree, generating decent cash flow, paying reliable dividends, and trading at a price that implies imminent obsolescence.

It isn’t glamorous. It isn’t growing. But it is by any rational, valuation-based lens, absurdly cheap.

How cheap?

You’re paying 0.5x average free cash flow (EV/FCF) for a business that has been yielding over 20% per year to shareholders for the last decade (at todays price). You’re buying it at 1.7x NCAV and an enterprise value barely above zero.

And the kicker: it’s still profitable, debt-light, and cash-rich.

Let’s dive in…