Lexmark International, Inc. (NYSE:LXK)
Lexmark International, Inc. ("Lexmark", "LXK" or the "Company") is a leading printing and imaging solutions supplier and enterprise content management provider. In FY2012, the Company derived 96% of revenue from its ISS segment, and 4% from Perceptive Software. The Company generated $3.6B in revenue and $563MM in EBITDA for TTM 6/30/2013, respectively.
Lexmark currently trades at an undemanding multiple of 3.2x EV/EBITDA, for a Company with a leading market share, highly cash generative business along with a catalyst in place as the Company is slowly going private through share repurchases. Why does this opportunity exist? It exists as the bear case against LXK is evident with a 20% short interest, as the...