Is the market over-extending on the Frencken (E28) AI narrative?
Just did a deep dive into Frencken’s FY2025 annual report and the numbers tell a different story than the stock price. While the AI semiconductor tailwind is real, the market seems to be pricing in an 8% EBIT margin—a level they haven’t hit in years. Plus, there’s a massive free cash flow nuance involving a "temporary" working capital inflow that most people are overlooking. I've mapped out a reverse DCF showing what needs to go right just to justify the current $3+ price. It’s a lot more than just "AI growth."
Check out the full breakdown here: www.stockbutts.com/e28-frencken-may-2026/
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