– A founder-led company with an incredibly strong history of value creation – every $1 invested in IDT in 2012 is worth over $35 today.
– Owning IDT today gives investors exposure to three high-growth subsidiaries within IDT, a traditional communications business that is a run rating of around $100mm EBITDA, as well as a large net cash balance sheet and management’s capital allocation prowess.
– Leverages existing customer relationships to launch new products, services, and business lines.
– One of the businesses, National Retail Solutions, a point of sale and payments platform with 20k installed terminals and growing at 40%CAGR, is worth more than the entire enterprise value of IDT today.
– Two straight quarters of meaningful share repurchase for the first time in years is also a positive signal.
– Valuing the Traditional Communications business at 4x 2023 EBITDA and high-growth businesses at 3x-8x 2023 revenues, results in a SOTP target of $64/share.
Exp. gain: +125% to $64/share.
Full write-up (free guest account required):
IDT Corporation (IDT), mcap=$811m, price $31.80 vs $28.00