Vistra Stock: Free Cash Flow Yield Is Not What It Seems

Summary

  • Vistra management loves to tout the stock's impressive free cash flow yield.
  • Management is pouring as much of its cash as possible into buying back VST stock.
  • VST shares remain undervalued, but the value proposition is not quite as impressive as management makes it sound.
  • Looking for a portfolio of ideas like this one? Members of High Yield Investor get exclusive access to our model portfolio. Learn More »

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Vistra Corp. (NYSE:VST) is an energy utility business that generates and retails electricity and natural gas to residential, commercial and industrial customers across 20 states in the United States. They serve ~4.6 million residential, commercial, and industrial customers and

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This article was written by

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Samuel Smith has a diverse background that includes being lead analyst and Vice President at several highly regarded dividend stock research firms and running his own dividend investing YouTube channel. He is a Professional Engineer and Project Management Professional and holds a B.S. in Civil Engineering & Mathematics from the United States Military Academy at West Point and has a Masters in Engineering with a focus on applied mathematics and machine learning. Samuel leads the High Yield Investor investing group. Samuel teams up with Jussi Askola and Paul R. Drake where they focus on finding the right balance between safety, growth, yield, and value. High Yield Investor offers real-money core, retirement, and international portfolios. The services also features regular trade alerts, educational content, and an active chat room of like minded investors.

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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