wateroperator wrote: Directcash
Directcash Payments Inc. (TSX:DCI) is Canada’s largest owner of private-label bank machines. The company also has operations in Australia, New Zealand, and the United Kingdom.
On first glance, the company’s 12.9% dividend looks to be unsustainable. It reported negative earnings over the last 12 months, and the technological threat facing ATMs are pretty obvious. Why use cash when it’ll soon be easy to pay with your phone?
Free cash flow tells a much different story. Over the last year the company reported a free cash flow of $56 million while only paying out $25 million in dividends. That’s a payout ratio of just 45%.
And nobody bothered to tell Directcash customers ATMs are about to go extinct. Both transactions per ATM and total ATMs outstanding went up over the last year.The good news is, Veresen has a pretty solid balance sheet. It owes just $1.06 billion in net debt compared to $4.6 billion in fixed assets. The company could likely afford .
Directcash
Directcash Payments Inc. (TSX:DCI) is Canada’s largest owner of private-label bank machines. The company also has operations in Australia, New Zealand, and the United Kingdom.
On first glance, the company’s 12.9% dividend looks to be unsustainable. It reported negative earnings over the last 12 months, and the technological threat facing ATMs are pretty obvious. Why use cash when it’ll soon be easy to pay with your phone?
Free cash flow tells a much different story. Over the last year the company reported a free cash flow of $56 million while only paying out $25 million in dividends. That’s a payout ratio of just 45%.
And nobody bothered to tell Directcash customers ATMs are about to go extinct. Both transactions per ATM and total ATMs outstanding went up over the last year.