I'll just post some notes about Magnesita I found searching on the net so far:
- I compared RHI numbers, the world market leader in the development, production and service of refractory materials, to Magnesita ones (RHI numbers were converted to BRL):
- The company announced investments of R$ 300 million in two projects for vertical integration into raw materials, aiming to reach 90% of vertically.
- It's trying to implement CCP model to price it's products. I didn't get that right.
- MAGG is charging about 100 millions in depreciation per year, so CFO is much higher than published earnings.
- FAMA has a nice share of the company.
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5 comments:
Why is the ROE so poor?
I think I found why the ROE is so poor: 2B of intangibles in the balance sheet. I think it came with the aquisition they made in 2008.
But I think that this amount paid for LWB should count when calculating return on capital: they could have distributed (dividends), invested other way...
But they chose to buy LWB and that's the return they got.
I only think that published earnings is far less than FCO.
There's a lot of "non-cash" costs in the cash flow Statement. I usually don't sum that up. In this case it's interests and monetary/exchange rate variations. They don't segregate the interests from the exchange rate variations, so I would not add that value to calculate the CFO.
http://www.valor.com.br/empresas/1003886/magnesita-vai-ampliar-fabrica-nos-estados-unidos
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