ORAGIN Foods Inc V.OG.H

RE:Expenses to revenue

[Torontojay]

Torontojay wrote:

Here are the total expense to revenue ratio for the history of the company. I've omitted the right of use depreciation numbers and goodwill impairment for 2019 to make it easier to compare over the years. 2016 was a shorter year and the company only had 2 locations compared to the current 4 locations. 

2016: 38.53%
2017: 34.77%
2018: 36.01%
2019: 36.17%
2020 ttm: 31.26%
2020 q2: 26.49% 

We have a situation where we are seeing gross margin expansion which could be partially related to the pandemic and cost cutting measures that are in place. 2021 could prove to be even better for the company with a shift to a decentralized distribution model rather than a centralized one. The companies enterprise value to ttm cash flow  excluding working capital is around 4. A great turnaround story and potential for huge capital appreciation over the next 12 months. 

 

 

2020 q3: ~ 29% 

Expect these numbers to go down even further with the planned shift to a decentralized distribution model. An extra 1 million in cost savings makes this investment really attractive at the moment.