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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.

Edition 165 - 21 Jul 23