This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
Main Street Capital (NYSE: MAIN) Q3 2024 Earnings Call Nov 08, 2024 , 10:00 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Greetings, and welcome to the Main Street Capital third-quarter earnings conference call. Image source: The Motley Fool. You may begin.
Efficient capacity management and strategic financial initiatives aimed at debt reduction have been key factors in its success. billion in debt, the company expects to achieve annual interest savings of $145 million, contributing to a debt reduction of $500 million. Total debt at the quarter's end was $27.0
Both businesses are capital-intensive. billion into capital improvements. wireless industry, Verizon and T-Mobile , and a combination of high capital intensity and network effects makes it unlikely another competitor will emerge. AT&T has a lot of debt, partly a legacy of its failed media acquisitions.
The company is debt free and had a liquidity position of about $1.3 And free cash flow and return on investedcapital are on the rise, showing Chewy is benefiting from its investments. I also like Chewy's financial health. billion at the close of the latest quarter.
The industry's long-term issue comes down to its inability to generate a return on capital necessary to cover its cost of capital. But it's not bad news for debt providers because they have been rewarded for putting up capital, with their investment backed up by a relatively liquid asset, the airplanes themselves.
steel import levels; construction activity; demand for finished steel products; the expected capabilities, benefits, and timeline for construction of new facilities; the company's operations; the company's strategic growth plan; legal proceedings; the company's future results of operations; financial measures; and capital spending.
The airline declared a dividend of 10 cents per share, saying the resumption reflected progress on its three-year financial plan that has already seen about $10 billion in debt reduction. For all of the debt it has paid down, its levels are still above where they were pre-crisis. per share consensus estimate.
ITW Return on InvestedCapital data by YCharts. The company has prudently acquired companies over the years (more than two dozen acquisitions), steadily increasing its return on investedcapital (ROIC). While Illinois Tool Works leans on debt, it doesn't do so too heavily. TTM = trailing 12 months.
Trust in superior capital allocation Capital allocation in the oil space can be difficult because a company's survival is often prioritized over shareholder profits. All this is to say that capital allocation is key when it comes to identifying profitable oil stocks. Today, oil prices are hovering around $70 per barrel.
In fact, Microsoft and Nvidia have more cash and equivalents like marketable securities than long-term debt, hence the negative figures. NVDA net total long-term debt (quarterly) data by YCharts. Oil and gas is capital intensive, and so is investing in AI. Microsoft pays more dividends than any other U.S.-based
The LP has delivered an average return on investedcapital (ROIC) of 12% over the last 10 years. Servicing debt shouldn't disrupt Enterprise Products Partners' distribution payouts either. The company manages its debt well. And it's the only midstream debt issuer with an A- credit rating.
The oil industry is extremely capital-intensive. Producers must stay ahead of this decline by reinvesting capital into new wells and related infrastructure. Some producers earn higher returns on their reinvested capital dollars than rivals. That's evident in ExxonMobil's long-term investment strategy.
This rising return on investedcapital (ROIC) is essential to investors as it shows the company is improving its ability to generate profits from its debt and equity -- a feat that frequently leads to a stock outperforming. TNC Net Profit Margin and ROIC data by YCharts. remains near 10-year highs.
It defines leverage as net debt adjusted for equity credit in junior subordinated notes (hybrids) divided by adjusted EBITDA. The company is also in solid financial shape concerning its debt load. Last year, Enterprise picked up its growth capital expenditures to $3.5 Enterprise ended the quarter with leverage of 3x.
Return on investedcapital also has been on the rise over the past year. AMZN Return on InvestedCapital data by YCharts These moves should benefit the company in better times, too. Investors' biggest concern about Carnival has been the company's debt levels.
Over the last 20 years, AutoZone has delivered total returns of roughly 4,000%, making it a 41-bagger in a relatively short period -- for true long-term investors, at least. With masterful capital allocators at the helm, AutoZone has provided investors with market-smashing returns -- and looks poised to continue doing so.
He also places a high value on companies that generate profits that can be reinvested in the business at high rates of return. Apple certainly passes the latter test, earning an extraordinary return on investedcapital of 56%. Buffett admires Apple's ability to make products that people can't live without.
The company's return on investedcapital (ROIC), an important metric that measures operational efficiency, has been over 10% for nearly two decades. PepsiCo's debt-to-equity ratio is around 2, so its capital structure includes more debt than Emerson's. With only $7.6 Data by YCharts. The stock's 3.2%
Best-in-class profitability Home to over 100 brands sold in 80 countries, Hershey has a proven track record of generating healthy returns on investedcapital as it expanded across the United States in its younger years and globally more recently.
billion of cash flow this year and have reached a key financial milestone while returning to a fully unsecured capital structure that will support our growth ambitions and expanding capital allocation. And this quarter, we reached a key financial milestone by returning to a fully unsecured capital structure.
billion through 2026 on new RNG facilities, Waste Management aims to generate an additional $450 million in free cash flow (FCF) annually once its capital expenditures (capex) start paying off. WM Return on InvestedCapital data by YCharts Measuring the company's profitability to its debt and equity, Waste Management's 10.5%
It doesn't have a great track record for investing its capital efficiently As an investor, it's important to know whether a business is going to make good use of the capital it has on hand, as well as the capital it can draw on in the form of debt and shareholders' equity.
31, the company still carried almost $29 billion in long-term debt on its balance sheet. The capital-intensive nature of Carnival's operations is also not a favorable trait. This is evidenced by the company's extremely low return on investedcapital (ROIC). To be fair, this balance has been coming down steadily.
However, after posting total returns of over 5,000% since the turn of the millennium, the company certainly qualifies. Despite this incredible run, Badger Meter remains a relatively small enterprise with a market capitalization of just $4 billion. BMI Return on InvestedCapital data by YCharts.
This dynamic has favored both retailers, allowing Home Depot to generate wide operating margins and high returns on investedcapital. It had a trailing 12-month return on investedcapital ( ROIC ) of 31.9%, which was down from 41.5%
Steady profitability, a rising dividend, and a once-in-a-decade valuation Zoetis' history of successful research and development (R&D) can clearly be seen in its consistently improving return on investedcapital (ROIC) , which recently hit 20%.
We can measure Toro's ability to successfully integrate its acquisitions by using return on investedcapital (ROIC) as our measuring stick. Comparing a company's profitability to its debt and equity, ROIC highlights how efficiently a company deploys its capital -- or, in Toro's case, how well it makes its acquisitions.
In investing circles, Bill Ackman is a prominent figure. He's the founder of hedge fund Pershing Square Capital Management. The winner is: Alphabet That's right, the only AI-related stock held in Pershing Square Capital's ultra-concentrated portfolio is Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). Image source: Getty Images.
Capital-allocation policy Devon Energy's capital allocation policy targets using 30% of FCF to support the balance sheet, partly in connection with the acquisition. billion debt-reduction program.) Devon will initiate a $2.5 The remaining 70% will be used for share repurchases, a quarterly fixed dividend of $0.22
Requiring a 15% annualized return for five years, an investment needs to slightly outperform the market's historical annualized total return of roughly 11% to 12% to accomplish this feat. United Parcel Service (NYSE: UPS) and Murphy USA (NYSE: MUSA) are two companies that fit this simple billing.
Diageo is quickly shifting its portfolio to capitalize on the growth levers listed above, including adding 11 net new super premium and premium brands through mergers and acquisitions (M&A) while disposing of 49 standard and value labels.
Given Bitcoin's current price of roughly $60,000, that would imply a more than 13,000% return on investment. Over time, Saylor suggests that the differences between Bitcoin and traditional currencies will become even starker, and that will lead to capital flowing into assets denominated in Bitcoin rather than dollars.
Being able to accurately forecast its operating cash flow is vitally important when it comes to outlaying capital for bolt-on acquisitions and new projects. Multiple years of reduced capital spending by major energy companies during the pandemic has constrained the global supply of oil. during the pandemic.
A stellar return on investedcapital Leveraging the power of its leadership position in the pool supplies and pool-related products market, Pool Corp. However, despite these short-term struggles, history may suggest that buying Pool right now could be a good long-term decision. Let's explore three key reasons why.
Since the spinoff, it has achieved its commitments stated at that time, which include industry-leading cash generation and debt reduction, as well as disciplined capital allocation, and return on investedcapital (ROIC) that's sustainably higher than 13%.
Three examples are businesses with consistently growing dividend payments and a low payout ratio, steady share repurchases, and a high and rising return on investedcapital. Particular financial metrics have been proven to indicate market-beating potential when analyzing stocks. This is important to investors.
It also expects to have a net-debt-to-adjusted- EBITDA ratio of 3.8, Kinder Morgan was levered up with debt, but it had previously been making a ton of money. For 2024, Kinder Morgan is forecasting that it will pay a dividend of $1.15 per share while collecting $1.21 in earnings per share and $8 billion in adjusted EBITDA.
Due to this slowdown, Etsy's market capitalization plummeted from above $30 billion to its current mark of around $6 billion, which required the S&P 500 to remove it from its index. A high and rising cash ROIC like Etsy's, comparing the company's cash generation to its debt and equity, is often an indicator of future outperformance.
First, the company acquired Blue Sky Data and its state law compliance data on over 40,000 equity and debt securities for a mere $12 million. While sales and net income only rose by 4% and 3% in the company's most recent quarter due to low volatility in the stock market, OTC Markets quietly made two acquisitions in 2022 to restart its growth.
It's a great industry to invest in, but there is one logical problem with it: Historically, airlines don't actually cover their cost of capital. The former is simply the profits generated from the capitalinvested in the business, while the latter is the weighted cost of its equity and debt.
The logic behind the spinoff was that it would unlock shareholder value and allow each company to more easily pursue mergers and acquisitions (M&A), allocate capital, and compensate employees as a pure play focused on one industry. The logistics services provider has come a long way since it was spun off from XPO in 2021.
IBM expects to grow revenue by 3% to 5% this year, driven by strong demand for digital-transformation projects that deliver clear returns on investment for customers. IBM certainly isn't the fastest growing tech company, but valued at just 14 times forward free cash flow, it doesn't need to be to produce solid returns for investors.
Supported by our tenacious approach to innovation, I believe we're best positioned by far to capitalize on this billion-dollar market opportunity as dentistry quickly pivots to 3D printing technology for the future. The largest use of cash during the year was $87 million used to repurchase $111 million of debt in March. Good morning.
Even if you can't get an SBA loan (which can be hard to get for acquiring businesses), if you have some capital of your own to invest, and you can work with the seller to find some financing options, there are various ways to make the deal happen. Tim saw this happen for Elma Wine & Liquor after he bought the business.
We organize all of the trending information in your field so you don't have to. Join 5,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content