TER

2.44%

20.0¢ terracom limited

Massive Free Cash-Flow Yield, page-20

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ptan

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29/09/22

10:01

Post #: 63937017
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Originally posted by ptan: ↑

I use FCF Yield to primarilyidentify under-valued stocks. Only companies with FCF yield over 15% will makethe first cut.
This is what CorporateFinance Institute says about FCF :-
“Free cash flow (FCF)measures a company’s financial performance. It shows the cash that a companycan produce after deducting the purchase of assets such as property, equipment, and other major investments from its operating cash flow. In other words, FCFmeasures a company’s ability to produce what investors care most about - cashthat’s available to be distributed in a discretionary way.Compared to earnings per se, free cash flow ismore transparent in showing the company’s potential to produce cash and profits”.

For stocks that makethe cut, I then use a quantitative and qualitative approach to dissect thecompanies further.

Investing thesis for TER is multi-fold – secular growth,low PE, low EV/EBITDA, high EBITDA yield, high FCF yield etc.
Based on the lastest FY reporting and management update,we can derive some interesting inference on TER.

-TER reported strong FCF $306m last FY.
-H2 FCF makes up 82% of full year FCF
-Q4 FCF should be immense (see management comments on Q4business update)
-TER repaid borrowings of $240 million
-FCF Yield based on last FY was 37% (based on current price)
-Upward adjustment of payout ratio and the payment of quarterlydividend reflect Management’s confidence of this FY

TER is indeed a uniqueCash Machine and, barring unforeseen circumstance, we should expect FCF (amountand yield) to easily surpass last FY – thus generating huge returns for shareholders.
Please do your owndue diligence.

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AUD is slipping badly against USD. This is a great opportunity for TER to sell forward USD to lock in AUD revenue. Will be very surprised if they have not done so already.

TER Price at posting: 99.0¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

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Last 20.0¢		Change -0.005(2.44%)		Mkt cap ! $160.1M

Open	High	Low	Value	Volume
20.5¢	20.5¢	20.0¢	$187.6K	923.2K

Buyers (Bids)

No.	Vol.	Price($)
51	2126264	20.0¢

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Price($)	Vol.	No.
20.5¢	103060	2

View Market Depth

No.	Vol.	Price($)
47	1424745	0.200
11	520042	0.195
10	409685	0.190
5	104216	0.185
7	347892	0.180

Price($)	Vol.	No.
0.205	103060	2
0.210	235800	4
0.215	654004	10
0.220	475621	11
0.225	2495823	12

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TER (ASX) Chart

Massive Free Cash-Flow Yield, page-20

IGO kicks off earn-in copper drilling on-site Encounter's Yeneena play as it adopts new identity

ASX Market Open: ASX200 to rise for Friday session | July 26

MinRes jumps 5% as the company meets production guidance – depressed iron ore prices be damned

Capital raisings wrap: Brainchip, Ovanti, Lake and VHM

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Nova locks in NASDAQ US market listing at a value of only US$3.3M as ASX gets quieter and quieter

Red Hawk upgrades Blacksmith with DSO mineral resource at the Eagle Deposit

Tissue Repairs soars nearly 32% on TGA approval for wound healing gel

Nine's staff strike as Paris Olympic coverage begins

Horizon firms up ore reserve for Boorara ahead of FY25 Q1 development decision

Featured News

Buyers (Bids)

Sellers (Offers)

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Massive Free Cash-Flow Yield, page-20

Top Stories

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ASX Market Open: ASX200 to rise for Friday session | July 26

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Capital raisings wrap: Brainchip, Ovanti, Lake and VHM

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Nova locks in NASDAQ US market listing at a value of only US$3.3M as ASX gets quieter and quieter

Red Hawk upgrades Blacksmith with DSO mineral resource at the Eagle Deposit

Tissue Repairs soars nearly 32% on TGA approval for wound healing gel

Nine's staff strike as Paris Olympic coverage begins

Horizon firms up ore reserve for Boorara ahead of FY25 Q1 development decision

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News