A Swiss running shoe company just signed Kylian Mbappé away from Nike on a ten-year deal, paying him partly in equity rather than only cash. That detail is the interesting one, because it means he now has a direct stake in whether the business grows.

See why the shares trade at roughly half what the company is estimated to be worth.

Automotive

Lear Corporation (NYSE: LEA) expanded its share-repurchase authorization to $1.5 billion and extended the program through 2029. The authorization equals approximately 26% of the automotive supplier’s $5.8 billion market value.

At $118.25, Lear trades at 7.5 times forward earnings and 6.9 times trailing free cash flow. Its $849 million in free cash flow yields 14.6%, while the $3.08 annual dividend adds 2.6%.

Look beyond the low multiple, and you find improving operating results. Second-quarter adjusted EPS rose 23% to $4.28, free cash flow increased from $171 million to $288 million, and E-Systems adjusted margins climbed to 5.8% from 4.9%.

Repurchases Have Already Changed the Math

Lear has spent $6.1 billion repurchasing stock since 2011, reducing the original share count by approximately 60%. Shares outstanding fell another 5% during the past year. Continued purchases at the current valuation could support further EPS growth even if industry revenue advances slowly.

Auto Production Still Sets the Limit

Lear depends on vehicle production schedules controlled by major automakers, leaving earnings exposed to tariffs, factory disruptions, and weaker consumer demand. Its 2.4% net margin offers little protection from a sharp volume decline, while net debt stands near $2.4 billion. Your confidence in the new authorization should therefore rest on actual quarterly purchases and continued E-Systems margin improvement, rather than the headline amount alone.

Publishing

Scholastic Corporation (NASDAQ: SCHL) fell nearly 10% after reporting fiscal first-quarter revenue of $216.8 million, down 4%, alongside a wider-than-expected adjusted loss. Management still maintained its full-year outlook despite the weak start.

The company expects 2% to 4% revenue growth and $135 million to $145 million of adjusted EBITDA this year. With enterprise value near $768 million, Scholastic trades at roughly 5.5 times the midpoint of that guidance.

Comparable adjusted EBITDA improved slightly, Entertainment EBITDA rose to $5.7 million from $700,000, and Book Fair bookings entered the fall season ahead of last year. Together, those figures let you separate seasonal weakness from a broader operational decline.

The Important Quarters Are Still Ahead

Scholastic earns most of its profit later in the school year, making the first quarter a poor measure of annual earnings power. Management also spent $25.8 million on repurchases during the quarter, with another $157.4 million authorized, equal to roughly 23% of the company’s current market value.

Weak School Demand Remains the Test

Education revenue remains under pressure, free cash flow guidance of $35 million to $40 million looks modest, and another weak selling season would challenge the maintained outlook. Still, your valuation case begins with lower debt, stronger Book Fair bookings, and a 5.5x EBITDA multiple before Scholastic reaches its largest quarters.

Gaming

Brightstar Lottery PLC (NYSE: BRSL) received fresh support today after Stifel reiterated its Buy rating and $19 price target following meetings with management. Shares trade near $9.83 after falling 43% over the past year, a decline Stifel believes reflects technical pressure rather than weaker fundamentals.

Management still expects 2026 revenue of $2.50 billion to $2.55 billion, more than 5% organic growth, and adjusted EBITDA between $1.16 billion and $1.19 billion. New York and Texas contract decisions remain due before year-end, while expansion continues across Italy, Brazil, and other lottery markets.

With enterprise value near $5.65 billion, Brightstar trades at roughly 4.8 times midpoint EBITDA. Its $0.92 annual dividend yields about 9.4%, meaning you are being paid well while management works through its current investment cycle and pursues new contracts.

Contract Decisions Can Reset Expectations

Brightstar has $175 million remaining under its repurchase authorization, equal to roughly 7% of its current market value. Management is also targeting $1.3 billion of adjusted EBITDA by 2028 as revenue growth combines with cost savings and additional digital lottery activity.

Debt Keeps the Yield Honest

Capital spending remains heavy, net debt is elevated, and losing a major lottery contract would weaken the cash available for dividends and repurchases. Still, the 9% yield pays your way through the wait as New York and Texas contract decisions determine whether the sub-5x EBITDA valuation can recover.

On Holding (NYSE: ONON)

On makes Swiss running shoes with hollow rubber pods in the sole, the ones you now see on roughly half the people at any gym. It just signed Kylian Mbappé away from Nike on a reported ten-year deal, paid in a mix of cash and equity, and hired Thierry Henry to run a brand new football division. First boots land in 2027. The equity piece matters because it ties him to the business rather than just renting his face.

Hiring a World Cup winner to run the division points the same way, since marketing stunts do not usually come with that kind of operational appointment attached.

The shares trade at roughly half their estimated fair value, insiders have been net buyers, and the brand has spent five years proving it can charge premium prices without discounting. Football is the first genuine test of whether that pricing power travels outside running.

Samsara (NYSE: IOT)

Samsara puts cameras and sensors into commercial vehicle fleets, tracking where trucks are, how they are being driven, and whether anyone is about to have an accident. Asplundh, one of the largest tree and utility services operators in North America, just picked Samsara for tens of thousands of its vehicles and specialist equipment.

That is a genuinely large single deployment, and utility fleets are among the hardest customers to win because field failures carry real safety consequences rather than just inconvenience. The stock sits roughly 23% below its estimated fair value with a quality score in the low eighties.

What you are buying is software that becomes harder to remove the longer a fleet runs on it, since every month of driver data, maintenance history, and route optimization raises the cost of switching to somebody else.

Coeur Mining (NYSE: CDE)

Coeur digs silver and gold across North America. It just committed to $158 million of exploration drilling this year, twice what it spent last year and the largest program in the company's history, concentrated on its Palmarejo and Las Chispas mines in Mexico.

The point of drilling around mines you already operate is that the roads, power and processing plants are already built, so anything you find is cheaper to bring into production than a discovery somewhere remote.

Precious metals miners live or die on reserves, because every ounce pulled out of the ground has to be replaced or the business slowly shrinks itself into nothing. This is a company spending real money to avoid that, at a point in the cycle when plenty of peers are cutting exploration budgets instead.

That's our coverage for today; thanks for reading! Reply to this email with feedback or any stocks you want me to check out.

Best Regards,
—Noah Zelvis
Undervalued Edge