A Wonderful Business at a Wonderful Price

Aggressive Share Buybacks. 20% Free Cash Flow Yield. 5x EV/EBIT.

Key Metrics:

• 20% FCF Yield

• 5x EV/EBIT

• Aggressive Share Buybacks

• No Debt

Warren Buffett once said:

“I try to invest in businesses that are so wonderful that an idiot can run them.”

I’ve always liked that idea.

But do you know what I like even more?

A wonderful business at a wonderful price.

And that’s exactly what today’s stock is.

It is not exciting. It is not fast growing. And it will never dominate headlines. Instead, it quietly prints cash, year after year.

It consistently produces free cash flow, earns high returns on capital, and has used that cash to aggressively buy back its own shares.

Since 1999, the company has reduced its share count by more than 80%, including 34% since 2022 alone.

Earnings per share have grown at a 10-year CAGR of 15%.

And yet, despite all of this, the stock still trades at an extremely attractive valuation of 5x EV/EBIT and a free cash flow yield of 20%.

Let’s take a closer look.