5.8x Earnings. 3.4x EV/FCF.
Founder-led, debt-free, and quietly compounding for decades.
Key Metrics:
5.8x earnings
3.4x EV/FCF
No long-term debt
56% of its market cap in cash
I am not a complicated investor.
Over the years I have settled on a pretty simple formula.
Find a business that has been doing the same thing for 30 years or more.
Make sure it is founder led.
Make sure there is little or no debt.
A strong cash position helps.
And the price has to make sense, as in the kind of price that makes you look twice and think: is this real?
That’s pretty much the whole thing.
I don’t necessarily need a hot sector. I just need a boring business that has been quietly compounding for decades, run by someone with skin in the game, selling for a price that leaves room for error.
Today’s business fits that description about as well as anything I have come across in a while.
Earnings per share have grown at 16% annually over the past decade.
Carries no long-term debt and holds roughly 60% of its market cap in cash.
Has been around for decades and the founder is still running the show.
It provides a service the world cannot really do without.
And the whole thing trades at 5.8x earnings and 3.4x EV/FCF.
Exactly the kind of simple setup I like to find.