A net-debt-free global market leader, over 5% dividend yield, over 14% FCF yield, buying back shares aggressively, revenue and profitability still growing in these difficult times, and still able to invest in growth. Furthermore, the previous track record for growth investments and acquisitions is excellent. In my opinion, the question is: who dares to buy domestic IT service sector “dogs” at these valuations when well-known premium quality is currently available in the bargain bin?
The dividend level alone is such that it might rise to around 6–7% at most during the worst market panics, but it’s unlikely to be a permanent phenomenon. If you start buying on Monday, you might not catch the absolute bottom, but you’ll get it at a low price, and the downside is very limited. The upside, once the overall economic cycle improves, is significant. A completely asymmetrical investment at these valuation multiples.