By Tue Nam Thien Vu, Matt Gullotta, Abby Jiang, Alex Koban-Hogue, Steve Kong and Jacob Webster
Recommendation
Points International (PCOM) is a micro-cap company that deals with the loyalty industry, mainly through buying and selling travel miles from loyalty programs. The company also enables airline customers to earn and redeem miles for hotels, car rentals… through its Points Travel and Platform Partners segments. Trading north of 4x EV/EBITDA, Points International is an asset-light, extremely niche (almost no direct competitor) technology company that generates significant free cash flow (20%+ FCF yield) and has a clean balance