One more for buy and hold and dividend keep coming in every 6 months and more every year
Some interesting figures to show the power of NVT's business model / capital structure.
Net capital employed in 2007 report (ex-intangible assets) was negative $59.59m
Reported EBIT in 2007 FY was $48m
Net capital employed in 2013 report (ex-intangible assets) was negative $102.24m*
Reported EBIT in 2013 FY was $116m
There is nothing like using interest free leverage to fund and grow your business. I have yet to see a business that takes it to this level and not only maintains negative capital employed, but increases it at high rates over time.
Deferred revenue received in advance is starting to grow again - my favourite line on the balance sheet. So is cash flow generation.
*Note that I have taken out $40m excess cash from the assets in 2013.
Some interesting figures to show the power of NVT's business model / capital structure.
Net capital employed in 2007 report (ex-intangible assets) was negative $59.59m
Reported EBIT in 2007 FY was $48m
Net capital employed in 2013 report (ex-intangible assets) was negative $102.24m*
Reported EBIT in 2013 FY was $116m
There is nothing like using interest free leverage to fund and grow your business. I have yet to see a business that takes it to this level and not only maintains negative capital employed, but increases it at high rates over time.
Deferred revenue received in advance is starting to grow again - my favourite line on the balance sheet. So is cash flow generation.
Don’t know – Don’t Care.
But if other people’s views rock your boat – here’s the latest Consensus Price Target.
View attachment 53693
I'd rather fly my own kite.
Maybe I am deluded in thinking that ASF is largely about sharing views and opinions....
Sorry Rick.
Broker Targets are a dime a a dozen as far as I'm concerned and just a Google search away. If you do fly your own kite then please do share your personal views, opinions, research, analysis
Didn't see this at the time - Robusta. I kinda disagree.My other favorite line is net debt falling to $94.9m from $117m on 30th of June 2012, I would love to see this fall further in the future with the reduction to a 80% payout ratio.
Didn't see this at the time - Robusta. I kinda disagree.
In a company where there is growth within a franchise that is achieving profitability rates well above it's cost of debt it is often very healthy to employ a little bit of leverage (especially if it can be used to employ capital that otherwise could not be funded). You often see this is mature companies because debt suddenly becomes cheaper than when they were smaller and more viable than equity finance.
In the case of NVT cashflow can definitely service the debt without introducing unncessary financing risk. And in this case returns on capital are very high, so any debt utilised to finance further capital deployment should increase the valuation of the company.
Paying down the debt may not be the wisest use of capital at this point in time, either.
Very significant drop in SP today on back of 2 announcements which did not impress me as being too negative. Was the drop something of an over-reaction?
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