$FDJU: A National Monopoly Trading at a 9.3% Dividend Yield 🎰🇫🇷

u/NerfLapras · Reddit — r/ValueInvesting · February 12, 2026 at 13:31 · ⬆ 11 pts · 💬 20 comments  | View on Reddit ↗
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Author argues FDJU.PA is mispriced after a 35% decline, citing a French gambling monopoly, Kindred-driven digital growth, a ~9% dividend yield, short-interest dynamics, and Feb 19 annual results as a catalyst.

FDJU.PA — LONG The author says FDJU.PA is a mispriced French gambling monopoly after a 35% share-price decline, citing a legal monopoly, 30,000+ points of sale, a 24% recurring EBITDA margin, and a 35% core lottery margin. The Kindred/Unibet acquisition raised digital revenue from 12% to over 30%, and despite the €2.5B debt taken on and a French tax hike, the author views it as a cash-cow business that can deleverage by 2026. Management's 75% payout policy supports a roughly €2.10 dividend and a ~9% yield, while 5.89% short interest and about 21 days to cover could amplify upside. The Feb 19 annual results are the catalyst, with the main stated risk being debt/tax headwinds and execution on Kindred integration and deleveraging.

After a 35% decline in the share price over the past year, I believe the market has created a significant mispricing on a company with a near-impenetrable moat.

Score 11
Comments 20
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u/NerfLapras Reddit r/ValueInvesting
Mispriced French gambling monopoly with 9% yield and Feb 19 catalyst
The author says FDJU.PA is a mispriced French gambling monopoly after a 35% share-price decline, citing a legal monopoly, 30,000+ points of sale, a 24% recurring EBITDA margin, and a 35% core lottery margin. The Kindred/Unibet acquisition raised digital revenue from 12% to over 30%, and despite the €2.5B debt taken on and a French tax hike, the author views it as a cash-cow business that can deleverage by 2026. Management's 75% payout policy supports a roughly €2.10 dividend and a ~9% yield, while 5.89% short interest and about 21 days to cover could amplify upside. The Feb 19 annual results are the catalyst, with the main stated risk being debt/tax headwinds and execution on Kindred integration and deleveraging.
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This Reddit post, published February 12, 2026, features u/NerfLapras discussing FDJU.PA. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: u/NerfLapras  · Tickers: FDJU.PA