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Online Share Trading

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Cashbuild

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Not applicable
Threshold, you ever had a look at this one? They generate bucketloads of cash. Looks interesting to me - going to work through the numbers in the next couple of days.
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6 REPLIES 6
louisg
Super Contributor
Great cash-flow. R720m cash, R2.5B market cap. That's 29% of mkt. cap in cash. NO DEBT.
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Not applicable
dude - where you been. Haven't heard from you in ages!
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THRESHOLD
Super Contributor
Not great cash generation:- R170m of cash generated by ops. came from working capital effects - mainly a build-up in creditors. So only about R200 was generated above that. Granted there is about R30m of interest received to be added but then there is a dividend policy to be supported that removes over R70 and more than depletes this. AND we need to see the effect that WALMART has on this industry. Not really cheap - 15x earnings / 12x time normalised earnings /12x cash generated by ops. I like the capital structure though it gives huge leverage of earnings growth to share price.
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louisg
Super Contributor
The PE is at 15x if one includes BEE deal. HEPs were stated at about 905c. That's about a 10.5x PE. Just waiting for them to bring their div cover down to 2 or below. The cash is piling up fast. Quality business available at a fair price.
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louisg
Super Contributor
HEPS ex BEE up 28% to 916.4c. Including BEE down 7% to 668.6c. @ 9500c a share, PE = 10.4 and 14.2 respectively.
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louisg
Super Contributor
Hi Skaaptjop, how you doing? Ya, it's been a while.
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