The issue is that markets generally apply heavy discount rates...

The issue is that markets generally apply heavy discount rates to that cash flow if it's kept in house. This is why capital allocation frameworks are so heavily scrutinised because there's almost an expectation that management will blow the money. Hence why for example in the oil and gas space and mining over the last 10-15 years investors have favoured returns via dividend to the point it actually creates commodity cycles because majors don't invest in exploration or even capex nearly as much as they should.

Not saying that this is going on here or that management is not allocating things well (I think they are doing good) but it's a factor that needs to be taken into account because the market will take it into account.