FF - FutureFuel: Returning Value To Shareholders With A Special Dividend Announcement
2024-03-19 14:45:34 ET
Summary
- FF has a strong balance sheet that provides investors with a margin of safety against any continued potential decline within the biofuel segment.
- The company plans to return value to shareholders through a $2.50 special dividend and a $25 million share repurchase program. This is in addition to its regular dividend of $0.24.
- At current levels, the market is fully discounting the biofuel business from FF's valuation and any improvement within that business will provide significant upside.
- I believe FF provides investors with an adequate margin of safety when purchasing shares below my worst-case scenario value of $7.75.