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POWR, a 7% yield
Current 640 Target 1,274 +99%
November 5th 2021
1 minute read
Sales declined-2%
Costs lower
Cashflow higher again at the average
Balance sheet, lower leverage
Valuation, a 7% yield
1 minute read
Sales declined-2%
- Sales declined -2% in the third quarter to 126 million dollars vs our 129 million dollars forecast.
- This brings the quarterly average to 4% growth.
- We predict average growth of 4% in this next 12 months to bring sales to 147 million dollars in the third quarter of 2022.
Costs lower
- The cash cost ratio was lower at -71% in the third quarter giving a higher 26 million dollars net profit.
- The average Cashflow cost ratio is at -67% now.
- We use the latest -71% cost ratio to predict a 30 million dollars profit in the third quarter of 2022.
Cashflow higher again at the average
- Free cashflow was higher again at 36 million dollars in the third quarter with higher -5 million dollars investment spend.
- Average quarterly Cashflow is at 37 million dollars now.
- We assume -5 million dollars investment spending which with higher sales gives a 38 million dollars Cashflow in the third quarter of 2022.
Balance sheet, lower leverage
- Cash increased from 267 to 326 million dollars in the third quarter.
- Liabilities increased slightly from 665 to 670 million dollars so net cash improved from -398 to -344 million dollars
- With our forecast cashflow & a -56 million dollars equity payout net cash will be -256 million dollars in 12 months time.
Valuation, a 7% yield
- POWR capital from the last 23 quarters was flat at 171 million dollars in the third quarter but will double to 314 million dollars in12 months time.
- At the current market value of 779 million dollars based on our forecasts it’s at 0.58 X assets with a 7 years payback & a 7% yield.
- Our cashflow forecast is 143 million dollars which means an 5 X valuation. A 10 X valuation gives a 99% higher target price of 1,274 rupiah.
