Company Debt – HHQH http://hhqh.net/ Sat, 27 Nov 2021 16:16:58 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://hhqh.net/wp-content/uploads/2021/07/icon-2-150x150.png Company Debt – HHQH http://hhqh.net/ 32 32 Validea Warren Buffett Daily Strategy Update Report – 11/27/2021 https://hhqh.net/validea-warren-buffett-daily-strategy-update-report-11-27-2021/ Sat, 27 Nov 2021 15:00:00 +0000 https://hhqh.net/validea-warren-buffett-daily-strategy-update-report-11-27-2021/ THere are today’s upgrades for Validea’s patient investor model based on Warren Buffett’s published strategy. This strategy looks for companies with predictable long-term profitability and low leverage that are trading at reasonable valuations. WILLIAMS-SONOMA, INC. (WSM) is a large-cap growth stock in the (specialty) retail sector. The rating according to our strategy based on Warren […]]]>

THere are today’s upgrades for Validea’s patient investor model based on Warren Buffett’s published strategy. This strategy looks for companies with predictable long-term profitability and low leverage that are trading at reasonable valuations.

WILLIAMS-SONOMA, INC. (WSM) is a large-cap growth stock in the (specialty) retail sector. The rating according to our strategy based on Warren Buffett has increased from 86% to 93% depending on the underlying fundamentals of the company and the valuation of the stock. A score of 80% or more usually indicates that the strategy has some interest in the stock and a score above 90% generally indicates a strong interest.

Business Description: Williams-Sonoma, Inc. (Williams-Sonoma) is a specialty retailer of home products. The Company’s brands include Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation and Mark and Graham, which sell its products through the Company’s e-commerce websites, catalogs direct mail and retail stores. These brands are also part of the company’s free loyalty program which offers members exclusive benefits within the Williams-Sonoma family of brands. The Company operates approximately 581 stores, including 538 stores in 42 states, Washington, DC and Puerto Rico, 21 stores in Canada, 19 stores in Australia and three stores in the United Kingdom. It also has franchise agreements with third parties in the Middle East, Philippines, Mexico, South Korea, and India that operate approximately 136 franchise sites, as well as e-commerce websites in select locations.

The following table summarizes whether the title meets each of the tests for this strategy. Not all of the criteria in the table below are given the same weight or are independent, but the table gives a brief overview of the strengths and weaknesses of the title in the context of the strategy criteria.

PROFIT PREDICTABILITY: PAST
DEBT SERVICE: PAST
RETURN ON EQUITY: PAST
RETURN ON TOTAL CAPITAL: PAST
FREE MOVEMENT OF CAPITAL: PAST
USE OF UNDISPORTED PROFITS: PAST
REDEMPTION OF SHARES: PAST
INITIAL RATE OF RETURN: PAST
EXPECTED RETURN: PAST

Detailed analysis of WILLIAMS-SONOMA, INC.

Full Guru Analysis for WSM

Full Factor Report for WSM

WALKER & DUNLOP, INC. (WD) is a mid-cap growth stock in the consumer financial services industry. The rating according to our strategy based on Warren Buffett has increased from 77% to 85% depending on the underlying fundamentals of the company and the valuation of the stock. A score of 80% or more usually indicates that the strategy has some interest in the stock and a score above 90% generally indicates a strong interest.

Business Description: Walker & Dunlop, Inc. is a holding company that operates its business through Walker & Dunlop, LLC. The Company provides commercial and financial real estate services. She creates, sells and manages a range of commercial real estate lending and equity financing products and provides brokerage and valuation services for multi-family properties. It is also engaged in the management of commercial real estate investments. The Company provides housing market research and provides investment banking and advisory services related to real estate. Through its agency products, the Company contracts and sells loans under the programs of the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and the Federal Housing Administration. Through its debt brokerage products, the Company provides loans and, in some cases, services, to various life insurance companies, commercial banks, issuers of commercial mortgage-backed securities and other investors. institutional.

The following table summarizes whether the title meets each of the tests for this strategy. Not all of the criteria in the table below are given the same weight or are independent, but the table gives a brief overview of the strengths and weaknesses of the title in the context of the strategy criteria.

PROFIT PREDICTABILITY: PAST
RETURN ON EQUITY: PAST
RETURN ON ASSETS: PAST
FREE MOVEMENT OF CAPITAL: TO FAIL
USE OF UNDISPORTED PROFITS: PAST
REDEMPTION OF SHARES: NEUTRAL
INITIAL RATE OF RETURN: PAST
EXPECTED RETURN: PAST

Detailed analysis of WALKER & DUNLOP, INC.

Full Guru Analysis for WD

Full Factor Report for WD

FOX FACTORY HOLDING CORP (FOXF) is a mid-cap growth stock in the auto and truck parts industry. The rating according to our strategy based on Warren Buffett has increased from 73% to 80% depending on the underlying fundamentals of the company and the valuation of the stock. A score of 80% or more usually indicates that the strategy has some interest in the stock and a score above 90% generally indicates a strong interest.

Company Description: Fox Factory Holding Corp. is a designer, manufacturer and distributor of products and systems that define performance. The Company’s performance definition products and systems are primarily used on bicycles, side-by-side vehicles, road vehicles with and without off-road capabilities, off-road vehicles and trucks, off-road vehicles ( ATVs), snowmobiles, specialty vehicles and applications, motorcycles and commercial trucks. Its brands include FOX, FOX RACING SHOX and RACE FACE. Its products include 32, 34 and 36 Factory Series FLOAT FIT4, which reduces overall fork weight, offers external tuning with its fourth generation FOX Isolated Technology (FIT) closed cartridge damper, and includes the negative chamber air spring. self-adjusting for more quiet operation and ease of adjustment. X2 technology is used in its Factory Series FLOAT and DH rear shocks, allowing the rider to independently adjust compression at high and low speed and rebound at high and low speed.

The following table summarizes whether the title meets each of the tests for this strategy. Not all of the criteria in the table below are given the same weight or are independent, but the table gives a brief overview of the strengths and weaknesses of the title in the context of the strategy criteria.

PROFIT PREDICTABILITY: PAST
DEBT SERVICE: PAST
RETURN ON EQUITY: PAST
RETURN ON TOTAL CAPITAL: TO FAIL
FREE MOVEMENT OF CAPITAL: PAST
USE OF UNDISPORTED PROFITS: PAST
REDEMPTION OF SHARES: NEUTRAL
INITIAL RATE OF RETURN: PAST
EXPECTED RETURN: PAST

Detailed analysis of FOX FACTORY HOLDING CORP

Full Guru Analysis for FOXF

Full Factor Report for FOXF

More details on Validea’s Warren Buffett strategy

Ideas for actions Warren Buffett

About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As chairman of Berkshire Hathaway, Buffett consistently outperformed the S&P 500 for decades and thus became one of the richest men in the world. (Forbes estimates his net worth at $ 37 billion.) Despite his fortune, Buffett is known to lead a modest life, by billionaire standards. His primary residence remains the gray Nebraska stucco house he bought for $ 31,500 almost 50 years ago, according to Forbes, and his Midwestern folk ways and penchant for simple pleasures – a cherry coke. , a good burger and a good book are all close to the top of the list – have been well documented.

About Validea: Validea is an investment research service that tracks strategies published by investment legends. Validea offers both equity analysis and model portfolios based on gurus who have outperformed the market over the long term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information on Validea, click here

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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Electricité de France (EPA: EDF) is it too indebted? https://hhqh.net/electricite-de-france-epa-edf-is-it-too-indebted/ Thu, 25 Nov 2021 06:40:52 +0000 https://hhqh.net/electricite-de-france-epa-edf-is-it-too-indebted/ Howard Marks put it well when he said that, rather than worrying about stock price volatility, “the possibility of permanent loss is the risk I worry about … and every investor practice that I know is worried. So it can be obvious that you need to consider debt, when you think about how risky a […]]]>

Howard Marks put it well when he said that, rather than worrying about stock price volatility, “the possibility of permanent loss is the risk I worry about … and every investor practice that I know is worried. So it can be obvious that you need to consider debt, when you think about how risky a given stock is, because too much debt can sink a business. Above all, Electricité de France SA (EPA: EDF) carries the debt. But does this debt worry shareholders?

When is debt dangerous?

Debt is a tool to help businesses grow, but if a business is unable to repay its lenders, then it exists at their mercy. Ultimately, if the company cannot meet its legal debt repayment obligations, shareholders could walk away with nothing. However, a more common (but still costly) event is when a company has to issue stock at bargain prices, constantly diluting shareholders, just to strengthen its balance sheet. That said, the most common situation is where a business manages its debt reasonably well – and to its own advantage. When we look at debt levels, we first look at cash and debt levels, together.

See our latest analysis for Electricité de France

What is the debt of Electricité de France?

You can click on the graph below for historical figures, but it shows that Electricité de France had € 57.2 billion in debt in June 2021, up from € 73.3 billion a year earlier. On the other hand, it has 27.5 billion euros in liquidity leading to a net debt of around 29.7 billion euros.

ENXTPA: History of debt against EDF equity 25 November 2021

Is Electricité de France’s balance sheet healthy?

Zooming in on the latest balance sheet data, we see that Electricité de France had a liability of 61.2 billion euros at 12 months and a liability of 193.2 billion euros beyond. On the other hand, it had cash of € 27.5 billion and € 26.6 billion in receivables within one year. It therefore has total liabilities of 200.3 billion euros more than its combined cash and short-term receivables.

This deficit casts a shadow over the 40.0 billion euro company, like a colossus towering over mere mortals. We would therefore monitor its record closely, without a doubt. In the end, Electricité de France would probably need a major recapitalization if its creditors demanded repayment.

We use two main ratios to inform us about the levels of debt compared to earnings. The first is net debt divided by earnings before interest, taxes, depreciation, and amortization (EBITDA), while the second is the number of times its profit before interest and taxes (EBIT) covers its interest expense (or its coverage of interest, for short). Thus, we consider debt versus earnings with and without amortization expenses.

Electricité de France’s net debt to EBITDA ratio of around 1.8 suggests only moderate recourse to debt. And its strong 16.6-fold coverage interest makes us even more comfortable. Above all, Electricité de France has increased its EBIT by 35% over the past twelve months, and this growth will make it easier to process its debt. The balance sheet is clearly the area to focus on when analyzing debt. But it is ultimately the company’s future profitability that will decide whether Électricité de France will be able to strengthen its balance sheet over time. So, if you want to see what the professionals think, you might find this free analyst earnings forecast report interesting.

Finally, a business needs free cash flow to repay its debts; accounting profits are not enough. It is therefore worth checking to what extent this EBIT is supported by free cash flow. Over the past three years, Électricité de France has experienced significant negative free cash flow overall. While this may be the result of spending for growth, it makes debt much riskier.

Our point of view

At first glance, the conversion of Electricité de France’s EBIT into free cash flow left us hesitant about the stock, and its total liability level was no more enticing than the only restaurant that was empty on the busiest night. of the year. But at least it’s decent enough to cover its interest costs with its EBIT; it’s encouraging. It should also be noted that companies in the Electric Utilities sector such as Électricité de France currently use debt without any problem. Once you consider all of the above factors together, it seems to us that Electricité de France’s debt makes it a bit risky. Some people like this kind of risk, but we are aware of the potential pitfalls, so we would probably prefer him to carry less debt. The balance sheet is clearly the area to focus on when analyzing debt. However, not all investment risks lie on the balance sheet – far from it. For example, we discovered 3 warning signs for Electricité de France which you should know before investing here.

If, after all of this, you’re more interested in a fast-growing company with a strong balance sheet, take a quick look at our list of cash-flow-growing stocks.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.


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Genpact (G) up on strong customer base and acquisitions, Debt Ails – November 22, 2021 https://hhqh.net/genpact-g-up-on-strong-customer-base-and-acquisitions-debt-ails-november-22-2021/ Mon, 22 Nov 2021 15:33:45 +0000 https://hhqh.net/genpact-g-up-on-strong-customer-base-and-acquisitions-debt-ails-november-22-2021/ Genpact Limited‘s (G Quick quoteg – Free Report) have gained 14.4% in the past six months, outperforming the 12.4% increase in the Zacks S&P 500 composite. The company is currently capitalizing on its dominant presence in the BPO services market, its strong customer base and its strategic acquisitions. Genpact recently released adjusted EPS of 66 […]]]>

Genpact Limited‘s (g Free Report) have gained 14.4% in the past six months, outperforming the 12.4% increase in the Zacks S&P 500 composite. The company is currently capitalizing on its dominant presence in the BPO services market, its strong customer base and its strategic acquisitions.

Genpact recently released adjusted EPS of 66 cents for the third quarter of 2021, beating Zacks’ consensus estimate by 15.8% and up 18% year-over-year. Revenue was $ 1.02 billion, which topped the consensus estimate of 0.4% and increased 9% year-over-year.

How is Genpact doing?

Genpact is a dominant name in the BPO services market based on expertise in business analysis, digital services and consulting. The company is a leading provider of industry-specific solutions for the Industrial Internet of Things (IIoT), user experience, order and supply chain management, data engineering, digital content management and risk management, direct procurement and logistics services, after-sales service support, industrial asset optimization and engineering services. Genpact’s focus on integrating processes, analytics and digital technologies, along with its deep domain expertise, helps it win regular customers. We expect a growing customer base, tight cost control, strategic acquisitions and aggressive share buybacks to drive Genpact’s overall results over the long term.

Artificial intelligence (AI) presents a significant growth opportunity for Genpact. The Company’s Intelligent Digital Business Processes (Digital SEPs) are a patented approach to improving the performance of customers’ business processes. Digital SEPs reduce inefficiency and improve process quality using AI, advanced domain-specific digital technologies, Lean Six Sigma methodologies, and experience-centric principles. In addition, Genpact Cora is an automation-to-AI platform that combines the company’s proprietary automation, analytics and AI technologies into a single common platform and accelerates digital transformations of businesses. clients. Acquisitions such as Rage Framework and design thinking-based companies such as Tandem Seven have also expanded Genpact’s AI product portfolio. We believe Genpact is well positioned to take advantage of future improvements in AI.

Genpact enjoys a strong customer base all over the world. The company serves nearly a quarter of the Global Fortune 500, including big names such as AstraZeneca, Novartis, Bayer, Dentsu, AXA, Hitachi, Konica Minolta, Heineken, Santander, Synchrony Financial and Sysco. The company’s global customer base has improved rapidly over the past five years (2015-2020) with revenues growing at a healthy 10% CAGR to reach $ 3.3 billion in 2020. Global customers, as a percentage of total income, increased by about 81%. in 2015 to approximately 88% in 2020. We believe that Genpact’s expertise in providing BPO services will continue to expand the customer base in the long term.

Genpact’s cash and cash equivalents balance of $ 922 million at the end of the third quarter of 2021 was well below the long-term debt level of $ 1.3 billion, which highlights that the company is not not have enough liquidity to meet this debt burden. However, the cash level can cover the short-term debt of $ 383 million.

Zacks rank and actions to consider

Genpact currently wears a Zacks Rank # 3 (Hold).

You can see the full list of today’s Zacks # 1 Rank (Strong buy) stocks here.

Some top-ranked stocks in the broader business services sector are Budget Notice (AUTO Free report) and Cross Country Health Care (CCRN Free Report) with a Zacks Rank # 1, and Charles River Partners (CRA Free Report), carrying a Zacks Rank # 2 (Buy).

Avis Budget has an expected profit growth rate of 398.1% for the current year. The company has a surprise earnings for the last four quarters of 76.9% on average.

Avis Budget shares have jumped 673.8% in the past year. The company shows long-term profit growth of 27.5%.

Cross Country Healthcare has an expected profit growth rate of 397.8% for the current year. The company has a surprise of 75% on average over the last four quarters.

Shares of Cross Country Healthcare have jumped 236.9% in the past year. The company shows long-term profit growth of 21.5%.

Charles River Associates has an expected earnings growth rate of 61.2% for the current year. The company has a surprise earnings for the last four quarters of 51%, on average.

Charles River shares have jumped 135.7% in the past year. The company shows long-term profit growth of 15.5%.


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These 4 measurements indicate that Dexco (BVMF: DXCO3) is using its debt safely https://hhqh.net/these-4-measurements-indicate-that-dexco-bvmf-dxco3-is-using-its-debt-safely/ Sat, 20 Nov 2021 11:30:47 +0000 https://hhqh.net/these-4-measurements-indicate-that-dexco-bvmf-dxco3-is-using-its-debt-safely/ Berkshire Hathaway’s Charlie Munger-backed external fund manager Li Lu is quick to say this when he says “The biggest risk in investing is not price volatility, but if you will suffer a loss. permanent capital “. When we think about how risky a business is, we always like to look at its use of debt […]]]>

Berkshire Hathaway’s Charlie Munger-backed external fund manager Li Lu is quick to say this when he says “The biggest risk in investing is not price volatility, but if you will suffer a loss. permanent capital “. When we think about how risky a business is, we always like to look at its use of debt because debt overload can lead to bankruptcy. We note that Dexco SA (BVMF: DXCO3) has a debt on its balance sheet. But the real question is whether this debt makes the business risky.

When is debt dangerous?

Generally speaking, debt only becomes a real problem when a company cannot repay it easily, either by raising capital or with its own cash flow. In the worst case scenario, a business can go bankrupt if it cannot pay its creditors. However, a more common (but still costly) event is when a company has to issue stock at bargain prices, constantly diluting shareholders, just to strengthen its balance sheet. By replacing dilution, however, debt can be a very good tool for companies that need capital to invest in growth at high rates of return. The first step in examining a company’s debt levels is to consider its cash flow and debt together.

See our latest review for Dexco

What is Dexco’s net debt?

You can click on the graph below for historical figures, but it shows that Dexco had R $ 3.11 billion in debt in September 2021, up from R $ 3.45 billion a year earlier. However, he also had 1.41 billion reais in cash, so his net debt is 1.71 billion reais.

BOVESPA: DXCO3 History of debt to equity 20 November 2021

How strong is Dexco’s balance sheet?

According to the latest published balance sheet, Dexco had liabilities of 2.68 billion reais due within 12 months and liabilities of 3.77 billion reais due beyond 12 months. In return, he had 1.41 billion reais in cash and 1.78 billion reais in receivables due within 12 months. It therefore has liabilities totaling 3.27 billion reais more than its combined cash and short-term receivables.

While that may sound like a lot, it’s not so bad since Dexco has a market capitalization of R $ 11.8 billion, and could therefore likely strengthen its balance sheet by raising capital if needed. However, it is always worth taking a close look at your ability to repay your debt.

In order to measure a company’s debt relative to its profits, we calculate its net debt divided by its earnings before interest, taxes, depreciation and amortization (EBITDA) and its profit before interest and taxes (EBIT) divided by its interest. debtors (its interest coverage). The advantage of this approach is that we take into account both the absolute amount of debt (with net debt versus EBITDA) and the actual interest charges associated with this debt (with its coverage rate). interests).

Dexco’s net debt is only 0.84 times its EBITDA. And its EBIT covers its interest costs 16.7 times more. So we’re pretty relaxed about its ultra-conservative use of debt. Even more impressive was the fact that Dexco increased its EBIT by 253% year over year. If sustained, this growth will make debt even more manageable in the years to come. The balance sheet is clearly the area to focus on when analyzing debt. But ultimately, the company’s future profitability will decide whether Dexco can strengthen its balance sheet over time. So, if you want to see what the professionals think, you might find this free analyst earnings forecast report interesting.

But our last consideration is also important, because a business cannot pay its debts with paper profits; he needs hard cash. We therefore always check how much of this EBIT is converted into free cash flow. Over the past three years, Dexco has actually generated more free cash flow than EBIT. This kind of cash conversion makes us as excited as the crowd when the beat drops at a Daft Punk concert.

Our point of view

The good news is that Dexco’s demonstrated ability to cover its interest costs with its EBIT delights us like a fluffy puppy does a toddler. And this is only the beginning of good news as its conversion from EBIT to free cash flow is also very encouraging. Overall, we don’t think Dexco is taking bad risks, as its leverage appears modest. We are therefore not worried about the use of a small leverage on the balance sheet. When analyzing debt levels, the balance sheet is the obvious starting point. But at the end of the day, every business can contain risks that exist off the balance sheet. We have identified 5 warning signs with Dexco (at least 1 which is significant), and understanding them should be part of your investment process.

At the end of the day, it’s often best to focus on businesses that don’t have net debt. You can access our special list of these companies (all with a history of profit growth). It’s free.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.


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Does ADL Bionatur Solutions (BME: ADL) use too much debt? https://hhqh.net/does-adl-bionatur-solutions-bme-adl-use-too-much-debt/ Thu, 18 Nov 2021 04:11:04 +0000 https://hhqh.net/does-adl-bionatur-solutions-bme-adl-use-too-much-debt/ Howard Marks put it well when he said that, rather than worrying about stock price volatility, “the possibility of permanent loss is the risk I worry about … and every investor practice that I know is worried. When we think about how risky a business is, we always like to look at its use of […]]]>

Howard Marks put it well when he said that, rather than worrying about stock price volatility, “the possibility of permanent loss is the risk I worry about … and every investor practice that I know is worried. When we think about how risky a business is, we always like to look at its use of debt, because overloading debt can lead to bankruptcy. We note that ADL Bionatur Solutions, SA (BME: ADL) has debt on its balance sheet. But the most important question is: what risk does this debt create?

When Is Debt a Problem?

Debts and other liabilities become risky for a business when it cannot easily meet these obligations, either with free cash flow or by raising capital at an attractive price. If things really go wrong, lenders can take over the business. While it’s not too common, we often see indebted companies continually diluting their shareholders because lenders are forcing them to raise capital at a ridiculous price. Of course, many companies use debt to finance their growth without negative consequences. When we look at debt levels, we first look at cash and debt levels, together.

Check out our latest review for ADL Bionatur Solutions

What is the debt of ADL Bionatur Solutions?

As you can see below, ADL Bionatur Solutions had a debt of 4.05 million euros in June 2021, up from 67.9 million euros the previous year. On the other hand, it has 641.5 K € in cash, leading to a net debt of around 3.41 M €.

BME’s debt to equity history: ADL November 18, 2021

How healthy is ADL Bionatur Solutions’ balance sheet?

It can be seen from the most recent balance sheet that ADL Bionatur Solutions had a liability of € 4.19m maturing within one year, and a liability of € 12.5m maturing beyond. In return, he had € 641.5K in cash and € 2.12M in receivables due within 12 months. It therefore has a total liability of € 13.9 million more than its combined cash and short-term receivables.

This deficit is not that serious because ADL Bionatur Solutions is worth € 26.1 million, and could therefore probably raise enough capital to consolidate its balance sheet, if necessary. However, it is always worth taking a close look at your ability to repay your debt. The balance sheet is clearly the area to focus on when analyzing debt. But it is the results of ADL Bionatur Solutions that will influence the balance sheet in the future. So, when considering debt, it is really worth looking at the profit trend. Click here for an interactive snapshot.

Over the past year, ADL Bionatur Solutions has managed to generate its first revenue as a listed company, but given the lack of profits, shareholders are no doubt hoping to see big increases.

Emptor Warning

During the last twelve months, ADL Bionatur Solutions has made a profit before interest and taxes (EBIT). Indeed, it lost € 2.1 million in terms of EBIT. When we look at this and recall the liabilities on its balance sheet, versus the cash flow, it seems unwise to us that the company has debt. Quite frankly, we believe the record is far from up to par, although it could improve over time. For example, we would not want to see a repeat of the loss of 2.4 million euros from last year. In the meantime, we consider the title to be very risky. When analyzing debt levels, the balance sheet is the obvious starting point. However, not all investment risks lie on the balance sheet – far from it. Note that ADL Bionatur Solutions displays 4 warning signs in our investment analysis , you must know…

At the end of the day, it’s often best to focus on businesses with no net debt. You can access our special list of these companies (all with a history of profit growth). It’s free.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.


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Is Yara International (OB: YAR) using too much debt? https://hhqh.net/is-yara-international-ob-yar-using-too-much-debt/ https://hhqh.net/is-yara-international-ob-yar-using-too-much-debt/#respond Fri, 12 Nov 2021 05:47:14 +0000 https://hhqh.net/is-yara-international-ob-yar-using-too-much-debt/ Legendary fund manager Li Lu (who Charlie Munger supported) once said, “The biggest risk in investing is not price volatility, but the possibility that you will suffer a permanent loss of capital. So it seems like smart money knows that debt – which is usually involved in bankruptcies – is a very important factor, when […]]]>

Legendary fund manager Li Lu (who Charlie Munger supported) once said, “The biggest risk in investing is not price volatility, but the possibility that you will suffer a permanent loss of capital. So it seems like smart money knows that debt – which is usually involved in bankruptcies – is a very important factor, when you assess the level of risk of a business. We note that Yara International ASA (OB: YAR) has debt on its balance sheet. But the most important question is: what risk does this debt create?

When Is Debt a Problem?

Debt helps a business until the business struggles to repay it, either with new capital or with free cash flow. Ultimately, if the company cannot meet its legal debt repayment obligations, shareholders could walk away with nothing. However, a more common (but still painful) scenario is that he must raise new equity at low cost, thereby diluting shareholders over the long term. Of course, many companies use debt to finance their growth without negative consequences. The first step in examining a company’s debt levels is to consider its cash flow and debt together.

Check out our latest review for Yara International

What is Yara International’s debt?

As you can see below, Yara International was in debt of US $ 3.52 billion, as of September 2021, which is roughly the same as the year before. You can click on the graph for more details. However, given that it has a cash reserve of US $ 488.0 million, its net debt is less, at around US $ 3.03 billion.

OB: YAR History of debt to equity November 12, 2021

Is Yara International’s balance sheet healthy?

According to the latest published balance sheet, Yara International had liabilities of US $ 4.31 billion due within 12 months and liabilities of US $ 4.77 billion due beyond 12 months. On the other hand, he had $ 488.0 million in cash and $ 1.77 billion in receivables within a year. As a result, its liabilities exceed the sum of its cash and (short-term) receivables by $ 6.82 billion.

This deficit is not that big as Yara International is worth US $ 13.6 billion and could therefore probably raise enough capital to consolidate its balance sheet, should the need arise. But we absolutely want to keep our eyes open for indications that its debt is too risky.

In order to measure a company’s debt relative to its profits, we calculate its net debt divided by its earnings before interest, taxes, depreciation and amortization (EBITDA) and its profit before interest and taxes (EBIT) divided by its interest. debtors (its interest coverage). Thus, we consider debt versus earnings with and without amortization charges.

Yara International has a low net debt to EBITDA ratio of just 1.3. And its EBIT easily covers its interest costs, being 26.4 times higher. We could therefore say that he is no more threatened by his debt than an elephant is by a mouse. On top of that, we are happy to report that Yara International has increased its EBIT by 38%, reducing the specter of future debt repayments. When analyzing debt levels, the balance sheet is the obvious starting point. But ultimately, the company’s future profitability will decide whether Yara International can strengthen its balance sheet over time. So if you are focused on the future you can check this out free report showing analysts’ earnings forecasts.

But our last consideration is also important, because a business cannot pay its debts with paper profits; he needs hard cash. We must therefore clearly check whether this EBIT generates a corresponding free cash flow. Over the past three years, Yara International has generated strong free cash flow equivalent to 77% of its EBIT, roughly what we expected. This free cash flow puts the business in a good position to repay debt, if any.

Our point of view

Fortunately, Yara International’s impressive interest coverage means it has the upper hand over its debt. But, on a darker note, we’re a little concerned with its total liability level. Looking at the big picture, we think Yara International’s use of debt looks very reasonable and we don’t care. After all, reasonable leverage can increase returns on equity. When analyzing debt levels, the balance sheet is the obvious starting point. But at the end of the day, every business can contain risks that exist off the balance sheet. For example – Yara International has 3 warning signs we think you should be aware.

If, after all of this, you’re more interested in a fast-growing company with a strong balance sheet, take a quick look at our list of cash net growth stocks.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.


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House of Agriculture Spiroy (ATH: SPIR) Debt use could be considered risky https://hhqh.net/house-of-agriculture-spiroy-ath-spir-debt-use-could-be-considered-risky/ https://hhqh.net/house-of-agriculture-spiroy-ath-spir-debt-use-could-be-considered-risky/#respond Sun, 07 Nov 2021 08:02:42 +0000 https://hhqh.net/house-of-agriculture-spiroy-ath-spir-debt-use-could-be-considered-risky/ Howard Marks put it well when he said that, rather than worrying about stock price volatility, “The possibility of permanent loss is the risk I worry about … and every investor practice that I know is worried. ” It’s only natural to consider a company’s balance sheet when looking at its level of risk, as […]]]>

Howard Marks put it well when he said that, rather than worrying about stock price volatility, “The possibility of permanent loss is the risk I worry about … and every investor practice that I know is worried. ” It’s only natural to consider a company’s balance sheet when looking at its level of risk, as debt is often involved when a business collapses. We note that The House of Agriculture Spiroy SA (ATH: SPIR) has debt on its balance sheet. But the most important question is: what risk does this debt create?

When Is Debt a Problem?

Debt is a tool to help businesses grow, but if a business is unable to repay its lenders, then it exists at their mercy. If things really go wrong, lenders can take over the business. While it’s not too common, we often see indebted companies continually diluting their shareholders because lenders are forcing them to raise capital at a ridiculous price. Of course, debt can be an important tool in businesses, especially capital intensive businesses. The first thing to do when considering how much debt a business uses is to look at its cash flow and debt together.

Discover our latest analysis for Maison de l’Agriculture Spiroy

What is House of Agriculture Spiroy’s net debt?

The image below, which you can click for more details, shows that in June 2021, the Maison de l’Agriculture Spiroy had a debt of € 17.2 million, compared to € 15.8 million in one year. . On the other hand, it has € 1.36 million in cash, leading to a net debt of around € 15.8 million.

ATSE: SPIR History of debt to equity November 7, 2021

How healthy is House of Agriculture Spiroy’s track record?

We can see from the most recent balance sheet that House of Agriculture Spiroy had liabilities of € 26.5 million due within one year, and liabilities of € 3.52 million due beyond. On the other hand, it had cash of € 1.36 million and € 4.97 million in receivables within one year. Its liabilities therefore amount to € 23.7 million more than the combination of its cash and short-term receivables.

The shortfall here hangs over the € 6.23million company itself, as if a child struggles under the weight of a huge backpack full of books, his sports equipment and a trumpet . So we would be watching its record closely, without a doubt. Ultimately, House of Agriculture Spiroy would likely need a major recapitalization if its creditors demanded repayment.

We use two main ratios to inform us about the levels of debt compared to earnings. The first is net debt divided by earnings before interest, taxes, depreciation, and amortization (EBITDA), while the second is the number of times its profit before interest and taxes (EBIT) covers its interest expense (or its coverage of interest, for short). The advantage of this approach is that we take into account both the absolute amount of debt (with net debt versus EBITDA) and the actual interest charges associated with this debt (with its coverage rate). interests).

The shareholders of House of Agriculture Spiroy are faced with the double whammy of a high net debt / EBITDA ratio (10.2) and relatively low interest coverage, since EBIT is only 0.50 times interest charges. The debt burden here is considerable. A buyout factor for House of Agriculture Spiroy is that it turned last year’s EBIT loss into a gain of € 624,000, over the past twelve months. There is no doubt that we learn the most about debt from the balance sheet. But it is the profits of House of Agriculture Spiroy that will influence the balance sheet in the future. So, when considering debt, it is really worth looking at the profit trend. Click here for an interactive snapshot.

Finally, a business can only pay off its debts with hard cash, not with book profits. It is therefore worth checking to what extent earnings before interest and taxes (EBIT) are backed by free cash flow. During the past year, House of Agriculture Spiroy recorded a significant negative free cash flow in total. While investors no doubt expect this situation to reverse in due course, this clearly means its use of debt is riskier.

Our point of view

To be frank, House of Agriculture Spiroy’s EBIT conversion to free cash flow and its track record of controlling its total liabilities make us rather uncomfortable with its debt levels. That said, his ability to increase his EBIT is not that much of a concern. We believe that the chances that House of Agriculture Spiroy have too much debt are very high. For us, that makes the stock rather risky, like walking through a dog park with your eyes closed. But some investors may think differently. There is no doubt that we learn the most about debt from the balance sheet. However, not all investment risks lie on the balance sheet – far from it. These risks can be difficult to spot. Every business has them, and we’ve spotted 3 warning signs for the Maison de l’Agriculture Spiroy (2 of which don’t sit too well with us!) you should know.

At the end of the day, it’s often best to focus on businesses that don’t have net debt. You can access our special list of these companies (all with a history of profit growth). It’s free.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.


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Is Ping Identity Holding (NYSE: PING) Using Too Much Debt? https://hhqh.net/is-ping-identity-holding-nyse-ping-using-too-much-debt/ https://hhqh.net/is-ping-identity-holding-nyse-ping-using-too-much-debt/#respond Fri, 05 Nov 2021 15:26:57 +0000 https://hhqh.net/is-ping-identity-holding-nyse-ping-using-too-much-debt/ Berkshire Hathaway’s Charlie Munger-backed external fund manager Li Lu is quick to say “The biggest risk in investing is not price volatility, but suffering a permanent loss of capital.” . So it can be obvious that you need to consider debt, when you think about how risky a given stock is because too much debt […]]]>

Berkshire Hathaway’s Charlie Munger-backed external fund manager Li Lu is quick to say “The biggest risk in investing is not price volatility, but suffering a permanent loss of capital.” . So it can be obvious that you need to consider debt, when you think about how risky a given stock is because too much debt can sink a business. Above all, Ping Identity Holding Corp. (NYSE: PING) carries debt. But the real question is whether this debt makes the business risky.

What risk does debt entail?

Generally speaking, debt only becomes a real problem when a company cannot repay it easily, either by raising capital or with its own cash flow. Ultimately, if the company cannot meet its legal debt repayment obligations, shareholders could walk away with nothing. However, a more common (but still painful) scenario is that he must raise new equity at low cost, thereby diluting shareholders over the long term. By replacing dilution, however, debt can be a very good tool for companies that need capital to invest in growth at high rates of return. The first step in examining a company’s debt levels is to consider its cash flow and debt together.

What is the debt of Ping Identity Holding?

As you can see below, Ping Identity Holding had debt of US $ 119.2 million in September 2021, up from US $ 149.0 million the year before. On the other hand, it has $ 51.0 million in cash, resulting in net debt of around $ 68.2 million.

NYSE: PING History of Debt to Equity November 5, 2021

A look at the liabilities of Ping Identity Holding

We can see from the most recent balance sheet that Ping Identity Holding had liabilities of US $ 81.7 million maturing within one year and liabilities of US $ 145.9 million maturing within one year. of the. On the other hand, it had $ 51.0 million in cash and $ 130.7 million in less than one year receivables. As a result, its liabilities exceed the sum of its cash and (short-term) receivables by $ 45.9 million.

This state of affairs indicates that Ping Identity Holding’s balance sheet looks quite strong, as its total liabilities roughly equal its cash. So the $ 2.34 billion company is highly unlikely to run out of cash, but it’s still worth keeping an eye on the balance sheet. When analyzing debt levels, the balance sheet is the obvious starting point. But it is future profits, more than anything, that will determine Ping Identity Holding’s ability to maintain a healthy balance sheet going forward. So, if you want to see what the professionals think, you might find this free analyst earnings forecast report interesting.

Over the past year, Ping Identity Holding has not been profitable in EBIT, but has managed to increase its revenue by 16%, to US $ 287 million. This rate of growth is a bit slow for our taste, but it takes all types to make a world.

Emptor Warning

During the last twelve months, Ping Identity Holding recorded a loss of profit before interest and taxes (EBIT). Indeed, it lost US $ 61 million in EBIT. Considering that besides the liabilities mentioned above, we are not convinced that the company should use so much debt. We therefore believe that its record is a bit strained, but not irreparable. We’d be better off if he turned his twelve-month, $ 42 million loss into profit. So, to be frank, we think it’s risky. There is no doubt that we learn the most about debt from the balance sheet. However, not all investment risks lie on the balance sheet – far from it. Note that Ping Identity Holding displays 1 warning sign in our investment analysis , you must know…

If, after all of this, you’re more interested in a fast-growing company with a strong balance sheet, take a quick look at our list of cash-flow net-growth stocks.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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Ecommerce aggregator Una Brands raises $ 15 million Series A five months after launch – TechCrunch https://hhqh.net/ecommerce-aggregator-una-brands-raises-15-million-series-a-five-months-after-launch-techcrunch/ https://hhqh.net/ecommerce-aggregator-una-brands-raises-15-million-series-a-five-months-after-launch-techcrunch/#respond Wed, 03 Nov 2021 01:01:49 +0000 https://hhqh.net/ecommerce-aggregator-una-brands-raises-15-million-series-a-five-months-after-launch-techcrunch/ Una Brands, the Asia-Pacific brand-focused e-commerce aggregator, today announced that it has raised $ 15 million for its Series A. The funding round was co-led by White Star Capital and Alpha JWC, with the participation of returning investors. and Ninjavan co-founder, Alvin Teo. The news comes just five months after Una launched with a $ […]]]>

Una Brands, the Asia-Pacific brand-focused e-commerce aggregator, today announced that it has raised $ 15 million for its Series A. The funding round was co-led by White Star Capital and Alpha JWC, with the participation of returning investors. and Ninjavan co-founder, Alvin Teo.

The news comes just five months after Una launched with a $ 40 million round of equity and debt. The startup did not disclose the debt to equity ratio (like many other ecommerce aggregators, Una uses debt financing to buy brands because it is not dilutive). Co-founder and CEO Kiren Tanna told TechCrunch that Series A is a fundraising round that is more than five times the valuation of Una’s last fundraising. In addition to raising equity, Una also extended the size of its credit facility with Claret Capital.

“We have a very good pipeline of brands through APAC that we are working on, and as we have already made a few deals, we are seeing bigger and bigger brands approaching us,” Tanna said. Series A was lifted to accelerate the growth of its brand portfolio and Una’s operations, and it plans to raise more debt and equity, he added. The company now has 90 employees in seven offices in Asia-Pacific: Singapore, Australia, India, China, Indonesia and Malaysia.

Unlike many other ecommerce aggregators that focus on Amazon sellers, Una describes herself as “industry agnostic” due to the number of marketplaces used in APAC, including Tokopedia, Lazada, Shopee, Rakuten, and eBay. Una looks for profitable brands that generate between $ 1 million and $ 50 million in revenue per year. After acquisitions, Una develops its brands by adding new distribution channels or developing them in new countries.

Since launching, Una has purchased more than 15 brands and says the first ones it acquired have seen their sales and profits increase by 50%. The average EBITDA of its acquired brands is around 26%, putting the company on the path to profitability, Tanna said.

He added that Una is developing technology to help its brands grow. Since most are not on Amazon and many are seller-shipped, sometimes from home, Una pushes them to their professional warehouse handling infrastructure. Tanna said the company is building its own technology to get transaction-level data from multiple channels to integrate it into its ERP system and track operational performance.

In a statement, Alpha JWC Managing Partner Jefrey Joe said, “Digitally native brands in APAC are an age-old trend that is growing 4 times faster than those in the West. We believe Una’s value proposition will resonate with brands across the region and further propel D2C growth in countries like Indonesia.


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World Premiere of QUANTUM DEBT presented at The Players Theater https://hhqh.net/world-premiere-of-quantum-debt-presented-at-the-players-theater/ https://hhqh.net/world-premiere-of-quantum-debt-presented-at-the-players-theater/#respond Mon, 01 Nov 2021 22:18:06 +0000 https://hhqh.net/world-premiere-of-quantum-debt-presented-at-the-players-theater/ Silver Glass Productions will present the world premiere of QUANTUM DEBT, a new movement-based drama designed, written and directed by Suzanne Willett. Previews begin December 2 at the Players Theater on Off-Broadway. QUANTUM DEBT is a look at student debt through the prism of quantum physics. A first-generation college student grapples with growing college debt […]]]>

Silver Glass Productions will present the world premiere of QUANTUM DEBT, a new movement-based drama designed, written and directed by Suzanne Willett. Previews begin December 2 at the Players Theater on Off-Broadway.

QUANTUM DEBT is a look at student debt through the prism of quantum physics. A first-generation college student grapples with growing college debt as she returns home to help the family, causing her to question her self-esteem. This movement-based piece is rooted in the different realities of the American Dream for GenXs and Millennials.

Quantum Debt stars Caitlin Ferguson, Claire Main, Collin McConnell, Laura Murphy, Josephine Pizzino, David Skakopi and Rebecca Wolf. The production team includes
Zach Dulny (lighting), Kristine Schlachter (direction) and Simone Schieffer (decoration / costumes).

Suzanne Willett is a winner of the Samuel French OOB Short Play Festival 2021, an Eugene O’Neill Playwrights Conference, Bridge Award, Women’s Works Short Play Lab and Fresh Ground Pepper Play Ground Play Group finalist. NY Productions: Life (Players Theater, 2019) Chaos / Absolute Zero (Players Theater, 2018), Rock, Paper, Scissors (Arctic Fridge Fest, 2017), Wonder Company (Dixon Place, 2017) Fall Pieces, a collection of short films experimental (Place Dixon 2015); Tompkins ’88, a play about the Tompkins Square Park riot in 1988 (Metropolitan Playhouse 2015); Robert McIntyre, A Man’s Struggle With His Paralyzed Hand (Manhattan Rep 2014). She received a Players Theater residency, an LMCC Creative Engagement, and an ART NY Space Grant for her work. MFA in Drama Writing, Hollins University. Member: Dramatist Guild, 29th St. Playwrights Collective.

Silver Glass Productions was founded in 2009 with a mission to develop and produce socially relevant theater from a unique perspective that fosters community dialogue. Past productions include Chaos / Absolute Zero; Life, an exploration of artificial intelligence; City Sounds, about New York’s changing soundscape during the pandemic; and the New Seeds Festival of new works. The company also runs experimental theater writing workshops periodically and has received a 2020 Creative Engagement Grant from the Lower Manhattan Cultural Council. For more information, visit www.silverglassprods.org.

QUANTUM DEBT takes place from December 2 to 19, Thursday to Sunday at 7 p.m. The Players Theater is located at 115 MacDougal Street, New York NY 10012 (accessible from A, C, E trains at West 4th Street). Tickets are $ 52 to $ 72. For tickets and more information, visit www.quantumdebt.org.


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