Current Valuation ($500M)Excluding increases in working capital (which are supposed to stabilize right about now), we're looking at a 10% operational cash flow return (2022) on the current market cap. We also have $260 million - that is to say, more than 50%! - of the current market cap in net cash, marketable securities and financial assets.
While 2023 may see a temporary setback for cash flows - although I don't think it will be a major one, since in the annual report they specifically say strong cash flows will continue - I believe the long-term trajectory for cash flows is UP from current levels. 60% of the innovative portfolio is still in the promotional phase and we likely have many launches coming up in 2024 (both innovative and BGx).
In addition to the current portfolio and pipeline, we still have plenty of capital left to allocate. It's been quiet on this front -- when will they find new deals? We know that in addition to building the pipeline and acquiring suitable products that immediately generate cash, they're looking for solutions to scale both Canada and Mexico.