Thanks for pointing this out, @anthonyms! Sure, they’re slowing down, but they’re generating meaningful (and growing) profits, and they’re priced for very little (if any) growth, whereas I think they’ll continue to grow incrementally with their customers. And at a market cap just over $3 billion, it feels like the upside outweighs the downside.
One negative I guess is that they have more debt than cash…but the debt is 0% convertible notes, and with strongly positive FCF they’ll be able to pay it back easily. The cash is down because they’ve spent it buying back shares. Can’t argue with that use of cash.
Not a super exciting company, and growth won’t be hyper, but I think it’s a bit undervalued. I’m in for a ~1% position and I’ll follow them for a bit.
Thanks,
Bear