I come at it from a different angle, but the conclusion is the same:
Even without invoking any synergy benefits, nor any further improvement in Gross Margin, I foresee NTD generating some $23m in FCF in FY2022, the debut full-year contribution from T4U.
$23m in FCF equates to 20c per share.
Compared to an 85c share price.
So, even if the Goodyear/Cooper saga means the company does not make profits ever again after Year 7 [*], I get my equity capital recouped in a little over 4 years.
So, 2 years of "bonus" FCF. Under a worst case scenario.
Don't mind stating that, like others here I suspect, I increased my investment in NTD quite meaningfully yesterday.
[*] Extremely unlikely... I think there's a FAR better than 50% chance that it will be business as usual... and if it isn't, well then NTD have some 6.5 years to design and implement an appropriate competitive response,)
NTD Price at posting:
88.5¢ Sentiment: None Disclosure: Held
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