Bullish thesis on British small cap Future plc (FUTR) trading at roughly 3x forward PE with strong free cash flow and a comparison business (GoCompare) worth more than the whole market cap.
FUTR.L — LONG The author argues Future plc trades at roughly 3x forward PE despite stable-to-slightly-declining revenue, flat EPS, and very strong free cash flow, with its GoCompare insurance comparison business acquired for £594 million being larger than the entire current market cap. The author attributes the past year's sell-off to a slight revenue decline and fears about AI insurance comparison competitor Insurify, which he considers unrealistic due to regulation and notes FUTR now has its own OpenAI partnership. Catalysts include continued smart acquisitions, daily share buybacks, and read-across from peer £MONY's strong earnings and £RCH's upcoming early-March results; the author's FCF-based fair value is £12-£14 versus a current £4 price.
they have a fair value using FCF analysis of perhaps £12-£14, and are currently valued at £4, despite being a healthy business PRINTING cash, with good margin.