Time & Model
Value, growth at reasonable price, contrarian, idiosyncratic research

Outerwall: A Maturing Cash Cow Offering A 17% FCF Yield

Outerwall (NASDAQ:OUTR) is selling for $1.17 billion and has free cash flow guidance of $200m to $240m. They are in the middle of a massive share repurchase program. Check out the piece of work they have done on their shares outstanding:

Check out the discrepancy between market capitalization and common stock price:

The common stock price fell by 1.8% and the market cap fell by a whopping 30%.

Check out the top of the corporation's three-year cash flow statement from the 2013 10-K (please try our Filings Reader Android app!):

(2013 10-K, p. 50; source: Time & Model's Filings Reader)

This looks like a healthy business.

One can see that GAAP net income has been...

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