Introduction
This month’s Opportunity Report profiles a behind-the-scenes giant in modern commerce that provides the payment infrastructure used by businesses ranging from small retailers and restaurants to large stadiums and global e-commerce networks. Despite producing excellent profitability—adjusted operating margins in the ~45% vicinity—the shares trade at a rock-bottom mid-single digit P/E after being battered by an unexpected, complex, and transformative “buy-and-sell” transaction. While Wall Street is wary of the large-scale integration, a noteworthy activist investor has amassed a material position, providing a vote of confidence in the business while also gaining board representation to quickly effect changes. With a 2028 FCF projection that suggests a whopping 24% FCF yield on today’s share price, this out-of-favor stock may be highly mispriced.
