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Concordia Healthcare Corp. T.CXR.R



TSX:CXR.R - Post by User

Post by drunk@noonon Oct 26, 2015 10:28am
179 Views
Post# 24226579

You are wrong sunshine. Debt is too high and growth is too

You are wrong sunshine. Debt is too high and growth is toolow for  what you are saying. Cashflow will be, what, 350 million next year, that's ebitda minus interest expense of 250 mill and taxes. That means it would take 10 years of next years cashflow to pay back debt, that's using all cahflow to pay debt, and that's not free cashflow. NOT 3 years as you state. And what about paying back the mountain of debt. And with growth in the high single digits. What's thazt 8%. That's slow growth. 
This company is very expense for such slow growth. Remeber market cap is 1.4  billlion $US and debt is $3.5 Billon. Therefore enterprise value is $4,9 billion US. What is next years casflow? 350 million. That means the company is trading at  14 TIMES!!!!! Enterprise value/ Cashflow with a piddly high single digit growth and debt at 2.5 times market cap.. And that's with 9% tax expense. And that's if interest rates stay low.
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