Nice result , nice buy peterdoobes.
Operating cash flow to net profit ratio 1.4
Free cash flow positive.
No debt
Negative working cap
ROIC - 400 % (EBIT/ Net Working cap +net fixed assets)
ROE 45%
Average Return on operating assets (post tax) = 89%
EV/EBITDA -approx 17 i.e earnings yield of 5.88%
Being priced at implied long term growth rate (r-g) of approx 8 percent which is a high long term growth rate expectation. I like this to be around bond yields (2 % higher is ok) but considering its near term future growth prospects the market has been efficient in pricing it I think.
However from a EV/EBITDA perspective based on its ROC , if it can maintain such a high level of ROC over the next few years, this will be a nice one to have. A steady compounding machine. Its main capex will be smart acquisitions.
Not many have such great numbers. Now to keep an eye for the next year.
MNF Price at posting:
$2.50 Sentiment: Buy Disclosure: Held