TNT is significantly undervalued By q3 2023, there were approximately 16.4Million shares outstanding. As of yesterday, they have repurchased almost 800,00 shares bringing down the total shares outstanding to 15.6M. It is projected to continue repurchases till April 17, bringing down the total shares outstanding to 15.3M shares.
The most recent dividend paid out per quarter was $7M. On an annualized basis, that’s around $28M. Assuming they pay the same dividend amount, that brings the dividend per share to $1.83 per share. At its current price, that’s a dividend yield of over 20%.
FFO has been consistently around $10M for the past 3 quarters. On an annualized basis, that’s around $40M or $2.61 per share.
Therefore the fair value of the company by using a conservative 8x multiple of ffo is $20.91. Another way to value the company is the fair dividend yield. Since this is a “riskier” investment, let’s give an implied dividend yield of 10%, which is still quite respectable. At a dividend yield of 10% when the dividend per share is $1.83, the stock would have to be at $18.3.
In other words, there is significant upside potential at its current price of $8.5-9.5.
Please feel free to comment if anyone disagrees.