Report by The Edge
This recent Spinoff from BorgWarner provides an enticing opportunity. PHIN, a supplier of automotive engineering and technology solutions, has witnessed heavy index selling pressure and is mispriced at current levels, trading at a 32% discount to its peers even though it has a lower leverage to its peers (1x vs. 2.2x), strong FCF generation & conversion (15% of FCF yield on a market cap) and has a pending dividend (in the 2% to 3% range). The Edge sees more than 50% upside from here.