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Antonio Tavares's avatar

Thank you for making this company known.

After a brief analysis, it seems to me to be clearly undervalued and with great potential for appreciation.

The question is always the same: when will the stock reflect its real value?

While we wait, we are well compensated through a juicy dividend and share buybacks.

I rate this stock a clear a buy.

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Mr Schmidt's avatar

Thanks for the write-up. I have a question on the relative valuation table, specifically Orsero EV FCF entry of 3.5. It seems inconsistent with the data regarding a MC of some 200M and net debt of 128M with a 2024 expectation of 20M in FCF - this would seem rather like 15x EV FCF to me. Can you comment how where that table entry stems from? Thanks!

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smallvalue's avatar

This number is the LTM ratio. You're right, looking forward to the full year 2024, the EV/FCF ratio is projected to be around 15x.

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Mr Schmidt's avatar

Thanks for getting back and clarifying - but you state that in 2023, due to acquisitions, the FCF was -9m (I didn't check). Did you adjust the FCF for acquisitions to get to that multiple?

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smallvalue's avatar

Yes, FCF is adjusted.

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Mr Schmidt's avatar

Ah ok, gotcha. Thanks

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