John Woodman of Southeastern Asset Management presented his in-depth investment thesis on FlatexDegiro AG (Germany: FTK) at Wide-Moat Investing Summit 2022.

Thesis summary:

FlatexDegiro is a competitively advantaged lowest-cost online broker with owned in-house technology.

The business generates strong customer growth from underpenetrated European broking markets and offline legacy incumbents. It has a highly scalable model with strong incremental margins, generating impressive returns on customer acquisition costs. John sees opportunity for increased customer wallet penetration via joint ventures in adjacent products.

The shares recently traded at a P/E of 9x despite a high-growth, cash generative, competitively advantaged business. This represents a discount to the peer group of more than 50% and is well below John’s estimate of long-term intrinsic value.

Finally, FlatexDegiro represents a potentially attractive M&A asset for financial institutions or private equity buyers.

The full session is available exclusively to members of MOI Global.

Members, log in below to access the full session.

Not a member?

Thank you for your interest.  Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form:

About the instructor:

John Woodman joined Southeastern’s London office in 2016 and is a Senior Analyst and co-portfolio manager of our Concentrated European Strategy. He has 20 years of investment experience and previously held roles as Senior Vice President of the Certification and Business Enhancement division for SGS in New York, Executive Director at Goldman Sachs in the Global Research division in London, and Vice President at Citigroup in London. Mr. Woodman received his bachelor’s degree in Geography and Environmental Science from the University of Oxford.

The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.