It does look quite cheap, but I guess one knock is the lack of underlying FCF growth.
In FY19, if you ignore NWC outflows, underlying FCF was roughly $1.18bn.
In FY24, that same figure is now $1.26bn.
That's basically 1% CAGR in a highly inflationary period. Are some of the businesses contending with some stiff headwinds and/or competitive+structural issues?
It does look quite cheap, but I guess one knock is the lack of underlying FCF growth.
In FY19, if you ignore NWC outflows, underlying FCF was roughly $1.18bn.
In FY24, that same figure is now $1.26bn.
That's basically 1% CAGR in a highly inflationary period. Are some of the businesses contending with some stiff headwinds and/or competitive+structural issues?
I don't consider investing in Primark and Sugar to be a negative.
GAAP EPS is probably a very good way to evaluate this business imo. If anything, the depreciation is likely to overstate maintenance capex somewhat.
At this valuation, you don't really need FCF growth, but it would be really interesting if the growth outlook was actually pretty good
Hey, thanks for the note. I think it's pretty interesting. Anything else you can share on the name ? Are there any good write ups ?
There are good writeups on seekingalpha.
No one cares to read them, is my point.