A $435m Business Priced At 1x FCF
It's also trading at 0.3 TBV, still paying dividends, and is over 100 years old.
Mr Deep-Value also offers:
A 90%+ discount off Bloomberg’s No.1 competitor
Separately managed accounts for US clients
If you like businesses selling at ludicrous prices, today’s stock looks very interesting:
Market Cap = $73m
Enterprise Value = $11m
5Y avg FCF = $15m (per year)
This all produces the following ratios:
NCAV Ratio = 1.1
TBV Ratio = 0.3
EV/5Y FCF Ratio = 0.7
P/5Y FCF Ratio = 4.8
Using the enterprise value, and the 5Y FCF figure it trades at 1x FCF (slightly less actually).
The company has net-cash (after debts) of $63m, which is almost equal to the market cap alone, and generates roughly $435m in annual revenue.
The company also owns a collection of land and properties with a hidden value (off balance sheet) of approximately $15m.
The operating business has been FCF positive for the last 7 years, and remains so today.
This business is priced like it died yesterday, despite being a cash-rich, cash-flowing operation.
It’s also been going for over 100 years, and is still paying healthy dividends.
The market is betting it will die soon, but that looks highly unlikely.
Let’s dive in…