https://kohls.gcs-web.com/static-files/69bb5ef4-94be-4108-9565-ea19aa1e76d8
Low valuation due to retail doom. Company is still making money and forecast EPS is $4.5 for 2019.
Debt is not excessive with interest coverage of ~4x based o operating profit and 6x on op cash.
Debt is eventually spaced out with next debt maturity of 530MM in 2023, 650MM in 2025 and the next big one is 427MM at 2045. In between is small amount maturity which can be handled by its cash holdings. total long term debt is 1.8B vs cash of 0.5B and equity of 5.3B. 9M operating cash flow is already 1B indicating its strong cash generation ability. Company is also actively paying down debt and engaging in the digital transformation which will pay fruits in future. The revenue drop is stablised but profit is lowered due to these investment.
Current valuation is not compelling and is a good entry point. Property and fix assets is 7B indicating a good source for unlocking value should management decide to sell off their assets.
Dividend payout is ~60% on net profit with yield of ~5% which is attractive.
Monday, January 13, 2020
DTEGY DEUTSCHE Telecom Review
https://www.telekom.com/en/investor-relations/publications/financial-results-2019#559390
Net debt: EUR 78.8 B which increase 42% a year ago mainly due to accounting principle change not because of company taking in new debt.
9M Operating Profit = 7.6B vs interest net expense of 1.8B
Interest coverage = 4x vs 5x in 2018 --> worsening financing ability
9M Operating Cash flow = 17.5B and FCF = 7.5B
Dividends Payout = 3.5B --> Coverage ratio is good. Not overpaying S/H. Dividend safety is high.
Interest coverage in terms of FCF and Operating Cash flow is much higher.
Overall no financing issues. Ability to pay banks and S/H is there.
Total Cash on Balancesheet = 6.4B vs ST Debt = 14B and LT Debt = 55B and LT Lease = 16B
20B debt expire within 5 years while 35B will expire beyond 5 years. No near term liquidity crunch as company's cash generation ability is there.
Net debt: EUR 78.8 B which increase 42% a year ago mainly due to accounting principle change not because of company taking in new debt.
9M Operating Profit = 7.6B vs interest net expense of 1.8B
Interest coverage = 4x vs 5x in 2018 --> worsening financing ability
9M Operating Cash flow = 17.5B and FCF = 7.5B
Dividends Payout = 3.5B --> Coverage ratio is good. Not overpaying S/H. Dividend safety is high.
Interest coverage in terms of FCF and Operating Cash flow is much higher.
Overall no financing issues. Ability to pay banks and S/H is there.
Total Cash on Balancesheet = 6.4B vs ST Debt = 14B and LT Debt = 55B and LT Lease = 16B
20B debt expire within 5 years while 35B will expire beyond 5 years. No near term liquidity crunch as company's cash generation ability is there.
Thursday, January 9, 2020
Overseas Education Limited OEL Review
https://links.sgx.com/FileOpen/OEL%20Financial%20Results%20Q3%202019.ashx?App=Announcement&FileID=585222
3Q19 financial statement.
>100 MM loan. total 2 mil of interest + capital repayment requirement every quarter while company is making ~2 MM of net profit. coverage ratio is on low side and without much margin.
The debt is for financing their new campus which is largely completed and they have shifted to new campus. Dividend payout is large with 8% yield. If business turn sour, they will have to cut dividend.
Need to look at cash flow to ascertain the safety
3Q19 financial statement.
>100 MM loan. total 2 mil of interest + capital repayment requirement every quarter while company is making ~2 MM of net profit. coverage ratio is on low side and without much margin.
The debt is for financing their new campus which is largely completed and they have shifted to new campus. Dividend payout is large with 8% yield. If business turn sour, they will have to cut dividend.
Need to look at cash flow to ascertain the safety
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