the market is panic-selling it down to €18 because of some localized court suspension in brazil regarding meal vouchers. the chart looks terrible.
but when you strip out the news and run the raw math, the mispricing is crazy:
- it's yielding 7.4% right now.
- the free cash flow payout ratio is only 26%. the dividend is covered 3x over by actual cash.
- net debt to ebitda is literally negative (-0.37x). they have a fortress balance sheet.
- p/e is sitting at 8.2x for a company that compounded eps at 12% annually over the last 5 years.
my script calculates a fair value north of €28. it is being priced for a disaster while sitting on a pile of net cash.
anyone else tracking the european payments sector right now, or is everyone just distracted by the macro noise?
