Over the last 10 years, capex has exceeded depreciation 8 times out of 10, however the accumulated depreciation ratio to gross PPE & leasehold improvements is 59%, when 5 years ago it was 42%. The difference is 17%, which if you multiply by current gross PPE & leases hold improvements, you get 39.56m. To me that sum looks like catch up capex TRS is going to have to spend over the next 5 or so years (if it wishes to restore PPE to more appropriate levels). Its quite a chuck given if you divide it by 5 you get 7.9m which is 21% of the most recent annual EBITDA, & this theoretical cost would roll for 5 years. Of course TRS might decide to maintain PPE & leaseholds at current rates, however surely they cant let it run to 70% or beyond. Depreciation is a real charge.
Morever its alarming TRS capex has so frequently been above its depreciation rate on a yearly basis, yet its core assets are losing value YoY. TRS might be more capital intensive than its historical capex has led to believe.
TRS Price at posting:
$6.16 Sentiment: Hold Disclosure: Not Held
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