Are these numbers still good considering covid though? Sorry if...

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Raspo1

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26/08/20

10:00

Post #: 46822481
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Originally posted by modelcitizen: ↑

I think we should clarify that is their operating cash flow we should factor in capex required and that $160 mill has been grossed up for tax which is quite cheeky of them

My take on it is:
Net Op CF: $128mill

less purchases of PPE: $142 mil

Real Free Cash Flow: - $14 mill

Now we cal play around and dissect what is included in the PPE and say that maintenance capex is closer to depreciation and truck & machinery costs which this year come to: $75 mil

So the steady state non expansionary Free cash flow to the business would be closer to $53 million which is pretty close to their NPAT

That said you have to figure their capital break down is:

Market value of Equity: circa $1.4 billion

plus market value of net debt: $0.310 billion

So total enterprise value of $1.7 billion (approx)

So on a high level if we want to figure out the yield on total market value of capital invested we are looking at:

75 mill / 1.7 billion: 4.41%

Granted no growth is factored into there from their capacity expansion and I always keep track of this business but geez there isnt a lot of money left over for equity holders at this rate

happy to hear about some growth aspects that could make those metrics above look a bit better

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Are these numbers still good considering covid though? Sorry if noob question

BIN Price at posting: $2.35 Sentiment: Buy Disclosure: Not Held
1 Upvote

0 Great analysis

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