So this company has free cash flow in excess of $800M per year, on only 150M shares, with a share count that has been declining by 5% annually thanks to the buyback, minimal capital investment needs based on the maturity of the business, a downright CHEAP input price tied to an aluminum glut (remember they are not a miner, but a fabricator), and a low beta based on the relative safety of the underlying operations, with just enough leverage to juice returns.
What am I missing here? I make this as a roughly $55 - $60 stock, which is very undervalued at lower than $44. I know this is no growth stock, but I do think 9% is reasonable even in this environment. Am I wrong?
Well nearly 3 months later it's still @ $44. I would personally like ti see a dividend that is more rewarding for use of my cash... I'll remain on the sidelines of this market for now and wait for the coming broadbased retracement.