TER

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22.5¢ terracom limited

AUD is slipping badly against USD. This is a great opportunity...

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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
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0 Great analysis

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(20min delay)
Last 22.5¢		Change 0.000(0.00%)		Mkt cap ! $180.2M

Open	High	Low	Value	Volume
22.5¢	22.5¢	22.0¢	$345.1K	1.539M

Buyers (Bids)

No.	Vol.	Price($)
8	141198	22.0¢

Sellers (Offers)

Price($)	Vol.	No.
22.5¢	28039	1

View Market Depth

No.	Vol.	Price($)
6	94744	0.220
10	279581	0.215
12	851048	0.210
8	385525	0.205
18	813250	0.200

Price($)	Vol.	No.
0.225	28039	1
0.230	141404	5
0.235	405660	6
0.240	910393	9
0.245	22700	2

Last trade - 16.10pm 05/07/2024 (20 minute delay)

TER (ASX) Chart

AUD is slipping badly against USD. This is a great opportunity...

The Big Deal: Free-to-air TV swings the axe, but will it be enough as enormous sports deal bills loom?

Has uranium run out of steam? An update on nuclear markets & developments ahead in FY25

Week 27 Wrap: "Election year" is here as UK Labour win contrasts France; Trump wins immunity & annual report season hushes ASX

Fast-track assaying yields 182 g/t gold for iTech at new NT play

Saturn’s stars have aligned for the gold explorer’s Apollo Project

Leo Lithium announces major divestment of flagship Goulamina project to Ganfeng

Red Hill Minerals Signs $6.5 Million Agreement with Peel Mining to Explore Curnamona Project, NSW

Climate change to drive market trends to the moon

Tivan and EARTH AI gear up to commence fresh drilling at Sandover lead-silver project, NT

KGL sniffs 19% Cu from drilling at Rockface play in NT

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

AUD is slipping badly against USD. This is a great opportunity...

Top Stories

The Big Deal: Free-to-air TV swings the axe, but will it be enough as enormous sports deal bills loom?

Has uranium run out of steam? An update on nuclear markets & developments ahead in FY25

Week 27 Wrap: "Election year" is here as UK Labour win contrasts France; Trump wins immunity & annual report season hushes ASX

Fast-track assaying yields 182 g/t gold for iTech at new NT play

Saturn’s stars have aligned for the gold explorer’s Apollo Project

Leo Lithium announces major divestment of flagship Goulamina project to Ganfeng

Red Hill Minerals Signs $6.5 Million Agreement with Peel Mining to Explore Curnamona Project, NSW

Climate change to drive market trends to the moon

Tivan and EARTH AI gear up to commence fresh drilling at Sandover lead-silver project, NT

KGL sniffs 19% Cu from drilling at Rockface play in NT

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News