Author Topic: ECL.AU - Excelsior Capital Limited  (Read 5342 times)


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Re: ECL.AU - Excelsior Capital Limited
« Reply #20 on: April 25, 2019, 04:08:21 AM »
I donít think the coal industry in Australia is terminal, metallurgical coal is pretty much alive. I think one thing I donít like about dividend payers in Australia is the high withholding tax of 30%. At least when held in an IRA, there is no way of getting it back.
To be a realist, one has to believe in miracles.


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Re: ECL.AU - Excelsior Capital Limited
« Reply #21 on: August 29, 2019, 06:58:49 AM »
Excelsior Capital reported earnings yesterday:

For the year ended June 30th, 2019 the Electrical Components segment earned pre-tax profits of $7.72 million vs $6.98 million in the prior year.

Overall, the company reported net income of $4.25 million for the year (adjusted for non-controlling interests). I make a few adjustments to net income to arrive at free cash flow for the underlying business. I add back the gain or loss on the investment portfolio net of tax ($.799 million), add back depreciation & amortization ($.386 million) subtract capital expenditures ($.322 million), and make an adjustment to normalize taxes ($.263 million).

I get FCF of $5.38 million ($.185 per share) for the year.

Here are the current figures:

Share price: $1.265
Market capitalization: $36.68 million
Net cash and investments: $18.41 million
Annualized free cash flow of the underlying business: $5.38 million
Net current asset value + securities: $38.98 million
Enterprise Value (market cap net of cash & investments): $18.27 million

At todayís market price of $1.265, Excelsior Capital is trading for an enterprise value of $18.27 million and the underlying business is producing $5.38 million in annual FCF. At the present price, Excelsior Capital is trading for just 3.4 times FCF net of cash & investments.

I'm quite happy with how the business is performing and the stock remains deeply undervalued.