- The shares have sold off on worries about the company’s exposure to a deteriorating credit environment and a decline in union membership, but we think these worries are overdone.
- The company really is a steady grower, with above average margins and lots of free cash flow.
- The excess cash flow is used mostly for buybacks which have reduced the share count materially and produces double-digit EPS growth. We see no reason why this won’t continue.
- Given these advantages, we see the shares as really quite really quite reasonably priced.
Torchmark: What’s Not To Like?
January 14th, 2019 · No Comments