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TOBA, at 0.35X assets
Current, target price 486, 588 (+21%)
September 10th, 2021
1 minute read
Sales up again
Margins turning positive
1 minute read
Sales up again
- Cashflow receipts increased another 17% in the second quarter to 78 million dollars in the second quarter.
- The average quarter growth is a strong 20%.
- We predict another 12% a quarter in this next 12 months bringing receipts up to a new high 122 million dollars in the second quarter of 2022.
Margins turning positive
- Cashflow costs, operating minus receipts as a percent of receipts have improved to -98% in the first half of 2021.
- Average costs are at -126%.
- We use the average costs of 98% in our forecasts.
Cashflow, to turn positive
Balance sheet, higher leverage
Valuation,at 0.35X assets
- Cashflow was negative again in the second quarter -8 million dollars with investment spending of -1 million dollars.
- Average quarterly cashflow is now at -15 million dollars.
- We assume the same -1 million dollars investment which with higher sales & margins gives a positive 10 million dollars cashflow in the second quarter of next year.
Balance sheet, higher leverage
- With a dividend payout, cash declined from 37 to 19 million dollars in the second quarter.
- Liabilities increased from 498 to 508 million dollars, so net cash worsened from -461 to -489 million dollars.
- With our forecast positive cashflow & no equity payout, net cash will improve to -455 million dollars in 12 months time.
Valuation,at 0.35X assets
- TOBA capital from the last five years improved to -211 million dollars in the second quarter.
- At the current value 279 million dollars, based on our forecasts, it’s at 0.35X assets with no yield.
- Our cashflow forecast is 34 million dollars which is a 8X valuation. At 10X, this gives a 21% higher target price of 588.
