Stealth Group Holdings Ltd

ASX:SGI

Stealth Group Holdings Ltd

ASX:SGI
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$1.040 (+2%)
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#2
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Reports (6) My Report Forum Investors
Forum Topics SGI SGI SGI valuation

Pinned valuation:

Valuation deleted
Greenblatt
Added 3 years ago

Some pushback, respectfully:

  • Net debt in excess of $10m. effectively double the market cap to get your EV (what actually matters IMO)
  • $9k in actual net profit (LTM), I looked at this business years ago, and deceptively love to track EBITDA but that excludes what is a fairly capital intensive business, with high lease liabilities and relatively high PP&E. Also conveniently excludes the interest on the debt.
  • Note with (very) low margins and ~30 day credit terms, there is high capital intensity on accruals, leading to very poor cash conversion in the event of any organic growth.

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Strawman
Added 3 years ago

Excellent points @Greenblatt

They really need to see volumes continue to grow and margins to expand. Hoping recent investments can allow them to more effectively scale too.

(i should clarify, i only hit 'update' on my valuation from 6 months ago because it still feels a about right for me -- but I forgot that that adds it back into the newsfeed. There's no new content added)


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