I took a quick look at Metalfrio, one of the world’s largest manufacturers of plug-in commercial refrigeration equipment, particularly ice cold merchandiser (ICM) equipment, because its yield is currently high.
Average FCF in the last 3 years is 55.5 millions, which yields 22.2%. This may sound to good to be true. And it really is:
- 27.6 millions of FCF was due to assets/liabilities changes. This is not expected to be recurrent and/or sustainable.
- 30.0 millions was due to tax incentives on ICMS in MS, due in 2025.
So FCF will be about 27.8 millions (11.2%) until 2025, not considering assets/liabilities changes. And nearly zero thereupon.
It doesn't look much attractive to me, given the kind of company.
1 comments:
I have a bad feeling for almost all brazilian industrials. The company must be very interesting to impress me, like Weg, Randon, Marcopolo, etc.
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