Long/short equity

Willdan: 20% Free Cash Flow Yield, A Ft. Knox Balance Sheet, And Promising Opportunities In Energy Efficiency And Transport Infrastructure

Willdan Group (NASDAQ:WLDN)


We focus on smaller companies with Ft. Knox balance sheets and large & sustainable free cash flow yields and we are typically seeking a mid-teens FCF yield or higher on an unleveraged basis. The objective is for the sustainable FCF to eventually drive up the share price to a more reasonable valuation, through share buybacks, debt reductions, dividends, or accretive acquisitions. Obviously, it is important we have a management team that cares about shareholder value. We also focus on small and micro-cap stocks because there is a much better chance to find an attractive investment opportunity which is under-followed or undiscovered.

This idea is a small company with limited trading and is most appropriate

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