Picture of GH's FCF over past ten years, Thank you SAGE!!Free Cash Flow, the remaining honey in the hive available after the bees have finished their work and they've eaten.
At Gamehost, the magic number is around $20mm per year.
Going forward we may see a range of $20mm-22mm.
Hopefully more.
NOTE: Chart is a WIDE picture, so you may have to scroll to the right at bottom of browser to view all data.
Little bit of easy math for us.
Conservative free cash flow 2024 = $20mm
Shares outstanding Q2 2024 = 21.5mm
We figure out how much FcF we own on a
per-share basis.
$20mm FcF / 21.5mm shares = $0.93/sh
Now, if the dividend was $0.36, and there was no more CAPEX and NCIB and Accelerated Debt repayment; what do you do with that remaining FcF?
Theoretically you could double the dividend to $0.72/yr and your payout ratio would be 77.4%.
Don't want a payout ratio above 80% during normal operating environment.
So there you have it. Sage has helped us visualize that GH could double the dividend at a future point in time. Ideally, you want to get gross debt to $50mm and the share price to $10-12, exhaust all attractive investment options for the company. Maybe a little property in GP... never know.
I can picture the news now............ "Gamehost announces a 100% dividend increase coinciding with the introduction of shiny new chrome Wood Bison in front of the Great Northern Casino."
Something to be proud of.