It is high. Over last 10 years or so DMP went on an expansion period, which was good as long as returns were good. Unfortunately they had problems with Japan and also other issues like inflation impacted margins. As a result they have been restructuring for 3 years now. Unfortunately both this phases was eating into FCF they were generating and more via debt. From 2026 that phase will be over and new management is going to be conservative in running the business. As a result they should have around $250m+ FCF for long years to come. They will be free to use for what ever highest return outcome. After taking tax implications they can take best option of paying dividends, debt, buy backs , bonus issues. This will be possible if they continue to maintain conservative approach new CEO is promising. Also I noticed they have too many corporate owned stores in Japan which can be unloaded once the remaining stores become profitable and attractive to the franchisees and pay debt down. I think the main factor is to stabilise revenue and margins for share price to move up.
DMP Price at posting:
$20.81 Sentiment: Hold Disclosure: Not Held
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