Four Mid-Cap Stocks Fit the Leveraged Buyout Template

Corporate Action
โดย 24/7 Wall St.·Read original
Summary · why it matters

Four mid-cap companies—OpenText, Brink's, Genpact, and DXC Technology—check every box for a leveraged buyout, according to an analysis by 24/7 Wall St. OpenText, trading at a forward P/E of 5x with 82% recurring revenue and a new CEO conducting a strategic review, is seen as the cleanest LBO setup. Brink's generates $436.4 million in free cash flow and trades at an EV/EBITDA of 9x, with insiders accumulating shares. Genpact, a BPO firm with private-equity roots, trades at a trailing P/E of 9x and saw its Advanced Technology Solutions segment grow 24.3% in the first quarter. DXC Technology, the deepest value name, has a market cap of roughly $1.6 billion against operating cash flow of $1.036 billion and an EV/EBITDA of 2.4x. Historically, private-equity buyouts have delivered a 20% to 40% cash premium to shareholders.

Impact on stocks 4

Cloud & Digital Infrastructure▲ · 2 stocks
Open Text Corp
OTEX
▲ PositiveCapitalrelevance

OpenText is described as the cleanest LBO setup with low P/E, high recurring revenue, and a strategic review, indicating buyout premium.

DXC Technology Co
DXC
▲ PositiveCapitalrelevance

DXC Technology is highlighted as a deep value LBO target with low EV/EBITDA and high cash flow, implying upside from a buyout premium.

Industrials▲ · 1 stocks
Brinks Company
BCO
▲ PositiveCapitalrelevance

Brink's is identified as a strong LBO candidate with high free cash flow and insider buying, suggesting potential premium from a buyout.

Artificial Intelligence▲ · 1 stocks
Genpact Limited
G
▲ PositiveCapitalrelevance

Genpact is noted as a potential LBO candidate with private-equity roots and attractive valuation, suggesting buyout premium potential.

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