Ebitda is usually a BS number. Like someone pointed out, this is a capital intensive business. And when you're under the pump like TPI is, it becomes all too tempting to start capitalising costs aggressively and getting creative with the interest expense. -Not saying they are doing this, but I've seen it happen all too often in similar situations. In analysing TPI, I would start with NPAT and then consider that they are in a low growth industry and have a history of poor operational management. In fact, I think they would actually be better off reversing the pre gfc acquisitions and splitting the company up so that the different businesses can get the management focus and attention they need.
Yes TPI has fallen a long way, but I think it could easily fall further in the long term. You could argue that the share price should be halved considering the current PE is around 19.
TPI Price at posting:
78.0¢ Sentiment: LT Sell Disclosure: Not Held
