Latest news with #ClearSecureInc
Yahoo
a day ago
- Business
- Yahoo
Clear Secure, Inc. (YOU): A Bull Case Theory
We came across a bullish thesis on Clear Secure, Inc. on Make Money, Make Time's Substack by Oliver | MMMT Wealth. In this article, we will summarize the bulls' thesis on YOU. Clear Secure, Inc.'s share was trading at $34.12 as of August 13th. YOU's trailing P/E was 20.42 according to Yahoo Finance. Milosz_M/ YOU operates a leading identity verification platform, most widely recognized for its CLEAR lanes at airports, where members use biometric data, including fingerprints and iris scans, to bypass security lines. The platform has expanded beyond airports into stadiums, venues, and other businesses, scaling to over 30 million members. Its growth is supported by substantial barriers to entry, including limited physical space, brand trust, and its strategic TSA PreCheck partnership. The company is also extending into high-margin digital identity and verification solutions, gaining adoption from government agencies, healthcare facilities, and major brands like LinkedIn and Uber, significantly broadening its total addressable market beyond travel. Financially, YOU has delivered a strong performance, with revenue up 17.5% year-over-year, total bookings up 13.1%, and an operating margin of 19.4%. The company is debt-free, holds over $500 million in cash, and maintains free cash flow margins above 40%. Forecasts project approximately $427 million in free cash flow by 2027, representing a compound annual growth rate of roughly 15%. Applying a 15x free cash flow multiple suggests a potential valuation of $6.4 billion, implying around 42% upside from current levels. YOU's combination of a dominant market position, expansion into high-margin digital verification services, strong balance sheet, and robust free cash flow generation presents a compelling investment case. The company benefits from multiple growth avenues and operational resilience, offering both revenue growth and free cash flow potential, making it an attractive opportunity with significant upside while maintaining limited downside risk. Investors may find value in both the ongoing expansion of its membership platform and the monetization of its digital identity solutions, positioning YOU for a meaningful rerating in the coming years. Previously, we covered a bullish thesis on Holdings, Inc. (BILL) by Compounding Your Wealth in May 2025, which highlighted strong subscription and transaction revenue growth, improving free cash flow margin, and strategic AI-powered finance initiatives. The company's stock price has depreciated by approximately 6.88% since our coverage. The thesis still stands as BILL continues to expand its AP/AR platform and invest in automation. Oliver from MMMT Wealth shares a similar bullish view but emphasizes YOU's leadership in identity verification and high-margin digital identity solutions. Clear Secure, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held YOU at the end of the first quarter which was 27 in the previous quarter. While we acknowledge the potential of YOU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None.
Yahoo
04-05-2025
- Business
- Yahoo
New CLT screening option hits roadblock
The public affairs director from facial recognition company CLEAR returned to Charlotte this week, the latest step in a months-long campaign to accelerate reaching an agreement to provide screening service at Charlotte Douglas International Airport. A spokesperson at parent company Clear Secure Inc. (NYSE: YOU) confirmed the visit by Jarryd Davis, CLEAR's public affairs director. Davis has met and spoken with several City Council members in recent months, both in person and virtually. They include Mayor Pro Tem Danté Anderson, LaWana Mayfield, James Mitchell and Tariq Bokhari, who resigned his council seat last month to take a job in the Federal Transit Administration. READ: Airport implements new elevator communication plan after traveler complaint Mayfield, during a council budget committee meeting in April, asked airport CEO Haley Gentry whether CLT has made progress on adding CLEAR security scanners as part of the main terminal lobby expansion. 'In terms of CLEAR, we have been in constant communication with CLEAR,' she said. 'However, there is some federal rulemaking that is underway now through the (Transportation Security Administration) involving CLEAR. And so, while this federal rulemaking is going on, we have stepped back from the table to see what happens with this, so we are sure of any investment that we make with them because the rules are changing.' Read more here. WATCH: Airport implements new elevator communication plan after traveler complaint
