Zack Buckley
Person
Zack Buckley is the managing partner of Buckley Capital Management, an investment adviser focused on value investing. He is known for analyzing small-cap companies and publishing investment theses.
What Zack Buckley has said on podcasts
21 statements
Over 90% of Priority’s business is recurring or reoccurring, making revenue highly predictable.
“Over 90% of the company's business is either recurring or reoccurring, providing a very high level of predictability.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 4:21
Priority’s treasury segment has over 80% EBITDA margins and tripled EBITDA over four years.
“60% of its business comes from the high-quality treasury segment, which is effectively an 80%+ EBITDA margin recurring revenue software business that has tripled EBITDA in the last 4 years.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 4:29
Priority trades at four-to-five times free cash flow while free cash flow per share grows above 10%.
“Priority today is trading between 4 and 5 times free cash flow for a business that's consistently growing free cash flow per share at 10% plus.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 4:44
Treasury Solutions represents most of Priority’s current value.
“treasury is really the majority of the value today.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 5:45
Applying Payoneer’s valuation implies Priority is worth about $12 per share.
“if you just use that valuation, which I think undervalues Priority, you would still get $12 a share, and Priority trades around $5.50 today.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 9:33
AI will not displace Priority’s Treasury Solutions business.
“Treasury Solutions isn't going anywhere, like AI is not displacing that.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 12:11
Priority’s valuation implies business failure despite substantial cash generation.
“it's priced for a business that's going out of business, when in reality, it's actually generating a ton of cash.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 14:26
Priority’s business is performing well despite its environment and valuation.
“I think the business is doing quite well, especially given sort of the overall environment and valuation today.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 14:39
Priority currently has its lowest leverage in years and is safer than previously.
“This is actually the lowest leverage that it's had since, like, in years. And so if anything, I would say it's safer today than it was in the past.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 15:35
Zack estimates Priority’s intrinsic value at roughly $17–$19 per share.
“sum of the parts around $17 a share, like a more simplistic multiple analysis gets me to around $19 a share”
Open the episode · Zack Buckley on $PRTH's take privateListen at 17:27
The special committee process is likely to realize fair value for Priority.
“I think fair value is likely to be realized.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 19:50
Priority deserves a valuation premium over Payoneer.
“Priority deserves a premium to Payoneer.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 21:43
The take-private offer provides roughly 10% downside protection from the current price.
“in the very worst-case scenario, theoretically, you're looking at $6 to $6.15 a share, which is roughly 10% upside from here.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 25:41
Priority’s fair value is more than double its current price.
“fair value is certainly well north of 100% from here.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 25:52
The lengthy process does not imply that Priority’s transaction will fail.
“I can't say with absolute certainty that a transaction will occur here, but certainly I don't think the amount of time that's transpired means that a transaction won't occur.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 28:26
Priority’s Treasury Solutions business is exceptionally attractive.
“that Treasury Solutions business is a gem. Like, that is an incredible business.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 28:49
Priority’s transaction valuation should have an eight-to-nine-times EBITDA floor.
“I think 8 to 9 times is probably the floor of where a transaction should occur for this.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 30:18
An eight-to-nine-times EBITDA transaction implies Priority shares at $12 or more.
“8 to 9 times is a $12 stock or higher.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 30:28
Priority uniquely combines recurring revenue, barriers, growth, and sub-five-times free cash flow valuation.
“I just don't think there's any business out there I can point to where you have high recurring revenue, high barriers to entry, strong growth, and it's trading at less than 5 times free cash flow”
Open the episode · Zack Buckley on $PRTH's take privateListen at 36:58
Priority’s undervaluation will be realized through a transaction or continued public ownership.
“I think that will get realized one way or the other, whether it's through a private transaction or whether it's the stock staying public.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 37:22
Priority offers limited long-term downside and significant upside.
“I think very limited downside over a long period of time and a really significant upside.”
Open the episode · Zack Buckley on $PRTH's take privateListen at 38:59
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
