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0.8¢ rectifier technologies ltd

Ann: Preliminary Final Report, page-26

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paddington bear

18,135 Posts.

7986

05/09/19

14:51

Post #: 40324977
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Originally posted by 3500 ↑

Nothing to dislike in this report.
# EBITDA margin >20%.
# Net profit margin 11%.
# ROE circa 30%.
# ROIC similarly at 30%.
# Not afraid to take on debt...Borrowing increased 44% ....Debt/Equity a reasonable 29%....Debt is a cheaper form of funding than equity raising.
# Increasing net asset backing YoY without resorting to equity raising.
# Cash flow +ve after stocking large inventories....Adjusting for increase in inventories , its cash flow would have been $4m.
# Sound balance sheet.
In short....A high quality , well run business punching well above its weight of a small capital base.
---------
What about Inventories?
RFT's working capital is largely comprised of inventories rather than liquid current assets ....this ,in a declining market, may raise concerns about liquidity....But there is no sign of declining demand in the EV charging infrastructure space.
I perceive stocking of inventories as a bullish sign for this market & these products.

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Hello @3500. Nice to see you posting again.

RFT Price at posting: 6.0¢ Sentiment: None Disclosure: Not Held
1 Upvote

0 Great analysis

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(20min delay)
Last 0.8¢		Change 0.000(0.00%)		Mkt cap ! $11.05M

Open	High	Low	Value	Volume
0.8¢	0.8¢	0.8¢	$737	92.10K

Buyers (Bids)

No.	Vol.	Price($)
1	197232	0.8¢

Sellers (Offers)

Price($)	Vol.	No.
0.9¢	361231	2

View Market Depth

No.	Vol.	Price($)
1	197232	0.008
7	1719433	0.007
13	2245159	0.006
8	1900010	0.005
4	2300000	0.004

Price($)	Vol.	No.
0.009	361231	2
0.010	1442493	7
0.011	692914	1
0.012	1565355	7
0.013	475500	3

Last trade - 15.59pm 09/09/2024 (20 minute delay)

RFT (ASX) Chart