Cross-border payments for 6 times earnings and almost 10% dividend

This global cross-border remittance provider now looks like a model value title: its revenues have been declining slightly for several years, digital competition is pushing up fees and margins, but the business still generates hundreds of millions of dollars of free cash flow a year. The stock trades at around 6-7 times earnings, around 7-8 times free cash flow and pays a dividend yielding around 10%, which is supplemented by aggressive buybacks of its own shares.

DCF-type valuation models show a fair value somewhere around $13, while the market is pricing in a "slow decline" and the analyst consensus is at most neutral. Into this comes a plan for a major digital transformation, including Solana's own stablecoin and double-digit percentage growth in digital and new services. So the investment story breaks down on the question of whether this firm can translate its historic network and brand into the digital world before fintech competitors cut too big a slice of the pie.

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