Here's Why Perimeter Solutions (NYSE:PRM) Is Weighed Down By Its Debt Load
Here's Why Perimeter Solutions (NYSE:PRM) Is Weighed Down By Its Debt Load
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of permanent loss is the risk I worry about... and every practical investor I know worries about.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. We note that Perimeter Solutions, SA (NYSE:PRM) does have debt on its balance sheet. But the real question is whether this debt is making the company risky.
霍華德·馬克斯說得好,他說的不是擔心股價的波動,而是 “永久損失的可能性是我擔心的風險... 也是我認識的每位實際投資者所擔心的風險。”當你檢查公司的資產負債表的風險時,考慮它的資產負債表是很自然的,因爲企業倒閉時通常會涉及債務。我們注意到,南澳大利亞州Perimeter Solutions(紐約證券交易所代碼:PRM)的資產負債表上確實有債務。但真正的問題是這筆債務是否使公司面臨風險。
When Is Debt A Problem?
債務何時會成爲問題?
Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. By replacing dilution, though, debt can be an extremely good tool for businesses that need capital to invest in growth at high rates of return. The first step when considering a company's debt levels is to consider its cash and debt together.
債務可以幫助企業,直到企業難以償還債務,無論是新資本還是自由現金流。在最壞的情況下,如果公司無法向債權人付款,它可能會破產。但是,更常見(但仍然令人痛苦)的情況是,它必須以低廉的價格籌集新的股本,從而永久稀釋股東。但是,通過取代稀釋,債務可以成爲需要資本以高回報率投資增長的企業的極好工具。考慮公司的債務水平的第一步是同時考慮其現金和債務。
How Much Debt Does Perimeter Solutions Carry?
Perimeter Solutions 揹負了多少債務?
The chart below, which you can click on for greater detail, shows that Perimeter Solutions had US$775.1m in debt in December 2023; about the same as the year before. However, because it has a cash reserve of US$52.8m, its net debt is less, at about US$722.3m.
您可以點擊下圖查看更多詳細信息,該圖表顯示,2023年12月,Perimeter Solutions的債務爲7.751億美元;與前一年大致相同。但是,由於其現金儲備爲5,280萬美元,其淨負債較少,約爲7.223億美元。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240424/0-d174c401245d683a36f0b20b6d7e5f97-0-d197b4dec616bd132630e88e72430efe.png/big)
How Healthy Is Perimeter Solutions' Balance Sheet?
Perimeter Solutions的資產負債表有多健康?
The latest balance sheet data shows that Perimeter Solutions had liabilities of US$55.1m due within a year, and liabilities of US$1.11b falling due after that. On the other hand, it had cash of US$52.8m and US$41.3m worth of receivables due within a year. So it has liabilities totalling US$1.07b more than its cash and near-term receivables, combined.
最新的資產負債表數據顯示,Perimeter Solutions的負債爲5,510萬美元,之後到期的負債爲11.1億美元。另一方面,它有5,280萬美元的現金和價值4,130萬美元的應收賬款將在一年內到期。因此,它的負債總額比其現金和短期應收賬款的總和多出10.7億美元。
When you consider that this deficiency exceeds the company's US$1.06b market capitalization, you might well be inclined to review the balance sheet intently. Hypothetically, extremely heavy dilution would be required if the company were forced to pay down its liabilities by raising capital at the current share price.
當你考慮到這一缺口超過了公司10.6億美元的市值時,你很可能會傾向於仔細審查資產負債表。假設,如果公司被迫通過按當前股價籌集資金來償還負債,則需要進行極其嚴重的稀釋。
We use two main ratios to inform us about debt levels relative to earnings. The first is net debt divided by earnings before interest, tax, depreciation, and amortization (EBITDA), while the second is how many times its earnings before interest and tax (EBIT) covers its interest expense (or its interest cover, for short). The advantage of this approach is that we take into account both the absolute quantum of debt (with net debt to EBITDA) and the actual interest expenses associated with that debt (with its interest cover ratio).
我們使用兩個主要比率來告知我們相對於收益的債務水平。第一個是淨負債除以利息、稅項、折舊和攤銷前的收益(EBITDA),第二個是其利息和稅前收益(EBIT)覆蓋其利息支出(或簡稱利息保障)的多少倍。這種方法的優勢在於,我們既考慮了債務的絕對數量(包括淨負債與息稅折舊攤銷前利潤),也考慮了與該債務相關的實際利息支出(及其利息覆蓋率)。
Perimeter Solutions has a debt to EBITDA ratio of 3.6 and its EBIT covered its interest expense 3.3 times. This suggests that while the debt levels are significant, we'd stop short of calling them problematic. Investors should also be troubled by the fact that Perimeter Solutions saw its EBIT drop by 13% over the last twelve months. If things keep going like that, handling the debt will about as easy as bundling an angry house cat into its travel box. There's no doubt that we learn most about debt from the balance sheet. But it is future earnings, more than anything, that will determine Perimeter Solutions's ability to maintain a healthy balance sheet going forward. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
Perimeter Solutions的債務與息稅折舊攤銷前利潤的比率爲3.6,其息稅前利潤覆蓋了利息支出的3.3倍。這表明,儘管債務水平很高,但我們不會稱其爲有問題。在過去的十二個月中,Perimeter Solutions的息稅前利潤下降了13%,這一事實也應該讓投資者感到困擾。如果事情繼續這樣下去,那麼處理債務就像把一隻憤怒的家貓捆到旅行箱裏一樣容易。毫無疑問,我們從資產負債表中學到的關於債務的知識最多。但是,未來的收益將決定Perimeter Solutions未來維持健康資產負債表的能力。因此,如果您專注於未來,可以查看這份顯示分析師利潤預測的免費報告。
But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. So we always check how much of that EBIT is translated into free cash flow. Over the last two years, Perimeter Solutions saw substantial negative free cash flow, in total. While investors are no doubt expecting a reversal of that situation in due course, it clearly does mean its use of debt is more risky.
但是我們最終的考慮因素也很重要,因爲公司無法用紙面利潤來償還債務;它需要冷硬現金。因此,我們總是檢查息稅前利潤中有多少轉化爲自由現金流。在過去的兩年中,Perimeter Solutions的總自由現金流爲負數。儘管投資者無疑預計這種情況將在適當的時候逆轉,但這顯然意味着其使用債務的風險更大。
Our View
我們的觀點
We'd go so far as to say Perimeter Solutions's conversion of EBIT to free cash flow was disappointing. And furthermore, its interest cover also fails to instill confidence. After considering the datapoints discussed, we think Perimeter Solutions has too much debt. That sort of riskiness is ok for some, but it certainly doesn't float our boat. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately, every company can contain risks that exist outside of the balance sheet. These risks can be hard to spot. Every company has them, and we've spotted 2 warning signs for Perimeter Solutions (of which 1 can't be ignored!) you should know about.
我們甚至可以說,Perimeter Solutions將息稅前利潤轉換爲自由現金流令人失望。此外,其利息保障也未能灌輸信心。在考慮了所討論的數據點之後,我們認爲Perimeter Solutions的債務太多了。這種風險對某些人來說是可以的,但它肯定無法滿足我們的需求。資產負債表顯然是分析債務時需要關注的領域。但歸根結底,每家公司都可以控制資產負債表之外存在的風險。這些風險可能很難發現。每家公司都有,我們發現了 2 個邊界解決方案的警告信號(其中 1 個不容忽視!)你應該知道。
Of course, if you're the type of investor who prefers buying stocks without the burden of debt, then don't hesitate to discover our exclusive list of net cash growth stocks, today.
當然,如果你是那種喜歡在沒有債務負擔的情況下購買股票的投資者,那麼請立即查看我們的獨家淨現金增長股票清單。
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Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。