Using EBITDA as a proxy for Operating cash flow (pre-capex, etc.): - FCF: $150m (lower end) - Capex: $50m (higher end) - Lease Liab (principal): $17m
FCF = $83m.
At the payout ratio mentioned, you're getting between $41.5m and $66.4m paid out, using the conservative end of guidance in each case.
With 175m shares on issue @ $2.47 (all figures in NZD), you end up with a MC of $432m, whilst swimming in cash.
So, buying this today, I'm getting: - Minimum 19.2% FCF return post re-investment into the business - 9.6% - 15.37% dividend yield, depending on the chosen ratio (possibly higher if you end up on the better side of guidance) - A streaming service that's growing quite strongly - A satelite business that's not really losing customers - More cost savings to come in FY23
Am I missing something?
SKT Price at posting:
$2.33 Sentiment: None Disclosure: Not Held
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