The Market Maven - Week 25
U-Haul, NCR Atleos
U-Haul Holding 🇺🇸 (NYSE: UHAL, EV: $15.8B, Last Close: $61.23)
While best known for it’s rental business, U-Haul has continued to grow through investment into new hybrid self-storage/rental facilities. They have a long runway to continue to do so at low to high double digit IRR’s.
CEO and Chairman Joe Shoen, owns ~$2.6bn of stock while his compensation is only $1m. Shares trade for 12x underlying FCF.
Silver Beech’s U-Haul Thesis from Their Q1 2023 Letter (Link, pg. 3).
A Podcast from Chit Chat Stocks on U-Haul (Link).
A Writeup from Young Hamilton(Link).
NCR Atleos 🇺🇸 (NYSE: NATL, EV: $4.6B, Last Close: $26.89)
NCR Corporation recently spun out their ATM manufacturer, Atleos. As a standalone company, Atleos is focused on transitioning it’s businesses model to a more recurring SaaS service to capitalize on the trend of banks outsourcing their ATM operations.
Management continues to push units from Maintain → Manage → Run, with the aim of having 125,000 ATMs within the Run category in the next 3–5 years. Shares trade for under 10x FCF, the majority of which is recurring.
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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.