Understated earnings and cheap valuation give this company a higher chance of beating earnings in the short-term and outperforming the market in the long-term.
While this company has wasted shareholder capital in the past, new management seems committed to capital discipline, cost-cutting, and maximizing cash flows.
The market underestimates the barriers to entry in this industry, and as a result, valuations for many of the companies imply profits will permanently decline.