Three-minute pitch #13

A very cheap US-biz with an unappreciated catalyst

Hello, Ultimate Value readers!

I am back with a new idea today. Here are some of the takeaways:

• US-listed, with a market cap of ~$550m and an EV of ~$850m.

• Liquidity is decent at $1.5m ADTV.

• The core business is a gem, with high margins (core EBITDA >40%), low capital intensity, and a long runway for growth.

• There is a new product launch that could result in a significant uplift to revenue and EBITDA this year. Most investors have yet to notice.

• It's very cheap: guidance puts it at ~9x 2024 FCFE, while I estimate ~6x levered free cash flow (ex-losses for its growth segment).

At a 10-13x FCF multiple, this could have a 60-100% upside over the next 12 months.

Let’s take a look.

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