Will be interesting to listen to their conf call tomorrow. I guess there will be some questions regarding the future use of the cash. They had 49.4 m of net cash at 31/12/20. If I am not wrong, they have used 8 m to buy extra capacity and they will spend around 7.5 m for dividend. So, they will still have around 34 m after the 2 expenses above, which is significant compared to the annual Capex of 4 to 5 m during the last 2 years.
Overall, not sure there is much change to the story, as the company remains very cyclical and there is probably still significant risk from imports, in particular if AUD continues to increase. However, the valuation seems to fully discount these risks with an EV/EBITDA 20 of 2.6 x (and figures above for free cash flow yield).
CAA Price at posting:
$6.03 Sentiment: Buy Disclosure: Held
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