The Market Maven - Week 16
Subaru, Delivery Hero, Gencor Industries
Subaru 🇯🇵 (TYO: 7270, EV: ¥247B, Last Close: ¥2422)
While headquartered in Japan, Subaru makes and sells most of it’s vehicles in the U.S. They have ¥1T of cash on the balance sheet and have been free cash flow positive every year since 2009. Toyota, who own 21% of Subaru, have been asked to reduce cross-shareholdings and improve capital efficiency which could potentially lead to an acquisition. Of note, Toyota originally paid ~7x EBITDA for its Subaru stake versus todays EV/EBITDA of ~1x.
A Writeup From Anand Srinivasan (Link).
Voss Capital Mentions Subaru in Their Q4 2025 Letter (Link, pg. 5).
Delivery Hero 🇩🇪 (ETR: DHER, EV: €8.9B, Last Close: €23.44)
Delivery Hero is a food delivery app. Scale matters in this business and Delivery Hero derives over 90% of GMV from countries where they are the #1 player. The industry is starting to rationalize with Delivery Hero and competitors making a huge pivot to profitability over the last 2 years. Delivery Hero is complex but it’s clear they are undervalued. They listed their Middle East business, which trades for a value of €7.3B of which Delivery Hero owns 80% of. This accounts for 15% of group GMV. Uber also offered €800M for their Taiwan business which accounts for only 4% of the groups GMV. Delivery Hero is now free cash flow positive and continues to grow rapidly.
Gencor Industries, 🇺🇸 (NYSE: GENC, EV: $20.2M, Last Close: $11.20)
Gencor Industries designs, manufactures and sells equipment used for the production of asphalt. They have the largest installed base of production plants in the United States. The company has $144M in cash with no debt outstanding and has earned an average of $7.5M annually over the last 10 years. Insiders own 30% of shares.
Check Out: Steam Networks
Disclosure: This newsletter does not provide investment advice. Information presented is for informational purposes only and should not be considered a recommendation to buy or sell securities. The author may or may not own the securities discussed.