RE:RE:RE:RE:Management CompensationI am OK with a low stock price as long as management buys back cheap stock.
Everyone gets to put their own assumptions in a DCF. For me stock easily gets to $10 a share with a DCF if company is managed for shareholders. How it doesn't with an NCIB year after year is beyond me.
Following are per share data using 49M shares
$13.50 sales last year.
$7.20 gross profit last year (53.3%)
$1.93 adjusted EBITDA from continuing operations (14.3%)
How are you modeling CapEx to PPE Depreciation? Company guided towards $10M ($.20 per share) in current year
How are you modeling CapEx to Gross Profit?
From a sharecount perspective
YR1 49M + 2M options - 5M buyback would be 46M shares
YR2 46M + 0.4M options - 4.4M buyback would be 42M shares
Assuming no revenue growth over next 2 years but gross profit margin of 56%. This is in an environment where retailers are raising prices I just want Reitmans to be less promotional. Not a big ask.
$15.76 sales
$8.83 gross profit (56%)
$2.37 adjusted EBITDA from continuing operations (15%)
Under this scenario where PPE Depreciation and Amortization are greater than or equal to CapEx if a DCF is not returning at least $10 per share the investor has a high discount rate.