Tekno published its 2010 results. Nothing fundamentally changed, but I was expecting a little more. Revenue is still down regarding 2008 (and if we adjust for inflation, even worse...). But a new plant is going to start in begining 2012. The numbers are very good if we take into account the market value (average las 3 years):
P/E: 9.4
ROE: 12%
ROIC: >25% (withou the impact of huge cash owned)
Yield: 5%
FCF: 11% (and investing in a new plant!)
3 comments:
With a FCF of 24M and:
discount rate: 7%
growth for 10 years: 4% (conservative considering the investiment in the new plant)
growth after 10 years: 2%
intrinsic value: 574M
divided by the market value of 222M...
equals to an upside of 158% !!!
Tekno's payout for 2010 earnings will be of 73%:
2010 Report
9. Distribuição de resultados
Do lucro líquido de R$ 24.881, propõe a Administração, que sejam destinados R$ 1.244, para reserva legal;
R$ 11.067, para juros sobre o capital próprio (...); R$ 7.114 para dividendos (...) e R$ 5.456 para reserva de lucros.
That's good, a yield of 8%. It could maintain a higher payout with that huge cash.
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