We Think Utz Brands (NYSE:UTZ) Can Stay On Top Of Its Debt
We Think Utz Brands (NYSE:UTZ) Can Stay On Top Of Its Debt
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the permanent loss of capital.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. As with many other companies Utz Brands, Inc. (NYSE:UTZ) makes use of debt. But the real question is whether this debt is making the company risky.
正如David Iben 所說,“波動性並不是我們關心的風險。我們關心的是避免資本的永久損失。”無論我們認爲某家公司的風險有多大,我們總是喜歡看它的負債使用情況,因爲負債過重可能導致破產。與許多其他公司一樣,Utz Brands, Inc. (NYSE:UTZ)利用了債務。但真正的問題是,這些債務是否會使公司面臨風險。
When Is Debt A Problem?
什麼時候負債才是一個問題?
Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. However, a more usual (but still expensive) situation is where a company must dilute shareholders at a cheap share price simply to get debt under control. 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. When we examine debt levels, we first consider both cash and debt levels, together.
通常情況下,當公司無法通過籌資或自有現金流輕鬆償還債務時,債務才會成爲真正的問題。最終,如果公司無法履行償還債務的法律義務,股東可能什麼也得不到。然而,更常見(但仍然昂貴)的情況是,公司需要以低廉的股價稀釋股東,以控制債務。但是,通過取代股權稀釋,債務可以成爲需要資本以高回報率投資於增長的企業的非常好的工具。在我們審查債務水平時,我們首先考慮現金和債務水平。
What Is Utz Brands's Debt?
Utz Brands的債務是什麼?
As you can see below, Utz Brands had US$772.6m of debt at March 2024, down from US$894.6m a year prior. However, it also had US$47.0m in cash, and so its net debt is US$725.6m.
正如下面所示,2024年3月Utz Brands的債務爲7.726億美元,比前一年的8.946億美元有所下降。但它也擁有4700萬美元的現金,因此其淨債務爲7.256億美元。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240627/0-e9760827fcaf1dd05c6aed37bdd32c9d-0-9b5af47748e2195dabe6d7eaff7cd97e.png/big)
How Strong Is Utz Brands' Balance Sheet?
Utz Brands的財務狀況如何?
Zooming in on the latest balance sheet data, we can see that Utz Brands had liabilities of US$235.3m due within 12 months and liabilities of US$999.9m due beyond that. Offsetting these obligations, it had cash of US$47.0m as well as receivables valued at US$140.2m due within 12 months. So its liabilities total US$1.05b more than the combination of its cash and short-term receivables.
放大最新的資產負債表數據,我們可以看到Utz Brands的短期負債爲2.353億美元,長期負債爲9.999億美元。抵消這些負責,它還有4,700萬美元的現金以及在12個月內到期的賬款總計1.402億美元。因此,其負債總額超過了其現金和短期應收賬款的組合1.05億美元。
Utz Brands has a market capitalization of US$2.42b, so it could very likely raise cash to ameliorate its balance sheet, if the need arose. However, it is still worthwhile taking a close look at its ability to pay off debt.
Utz Brands的市值爲24.2億美元,因此,如果有需要,它很可能會籌集資金來改善它的資產負債表。然而,仔細查看其償債能力仍然非常值得。
We measure a company's debt load relative to its earnings power by looking at its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and by calculating how easily its earnings before interest and tax (EBIT) cover its interest expense (interest cover). 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).
我們通過查看淨債務與利息、稅、折舊和攤銷前收益(EBITDA)之比以及計算其利息支出由收益前利息和稅(EBIT)覆蓋的程度來度量一家公司的債務負載相對於其收益能力的程度。此方法的優點在於我們同時考慮了債務的絕對量(以淨債務爲EBITDA)以及與該債務相關的實際利息支出(以其利息覆蓋倍數計算)。
Utz Brands shareholders face the double whammy of a high net debt to EBITDA ratio (5.9), and fairly weak interest coverage, since EBIT is just 0.76 times the interest expense. This means we'd consider it to have a heavy debt load. However, it should be some comfort for shareholders to recall that Utz Brands actually grew its EBIT by a hefty 136%, over the last 12 months. If it can keep walking that path it will be in a position to shed its debt with relative ease. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately the future profitability of the business will decide if Utz Brands can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
Utz Brands的股東面臨一個雙重打擊:淨債務與EBITDA比率高(5.9),利息覆蓋率相當薄弱,因爲EBIT僅爲利息支出的0.76倍。這意味着我們認爲它的負債很重。然而,對於股東來說,值得注意的是,Utz Brands在過去12個月中實際上增加了136%的EBIT。如果它能繼續保持這個趨勢,將有可能相對容易地擺脫其債務。分析債務水平時,資產負債表是明顯的起點。但最終,企業未來的盈利能力將決定Utz Brands是否可以隨着時間的推移加強其資產負債表。因此,如果您想了解專業人士的看法,則可以查看這份免費的分析師利潤預測報告。
Finally, a company can only pay off debt with cold hard cash, not accounting profits. So it's worth checking how much of that EBIT is backed by free cash flow. Over the last two years, Utz Brands recorded free cash flow worth a fulsome 87% of its EBIT, which is stronger than we'd usually expect. That positions it well to pay down debt if desirable to do so.
最後,公司只能用冰冷、硬通貨現金償還債務,而不是會計利潤。因此,檢查其中多少是由自由現金流支撐的是值得的。在過去兩年中,Utz Brands記錄了價值額EBIT的充裕自由現金流(價值相當於EBIT的87%),這比我們通常所預期的要強。如果需要的話,它將很好地定位,以償還債務。
Our View
我們的觀點
We weren't impressed with Utz Brands's net debt to EBITDA, and its interest cover made us cautious. But its conversion of EBIT to free cash flow was significantly redeeming. Considering this range of data points, we think Utz Brands is in a good position to manage its debt levels. Having said that, the load is sufficiently heavy that we would recommend any shareholders keep a close eye on it. The balance sheet is clearly the area to focus on when you are analysing debt. However, not all investment risk resides within the balance sheet - far from it. For example, we've discovered 1 warning sign for Utz Brands that you should be aware of before investing here.
我們對Utz Brands的淨債務/EBITDA和其利息覆蓋率的表現並不滿意。但它將EBIt轉換爲自由現金流的表現令人印象深刻。考慮到這一系列數據點,我們認爲Utz Brands處於管理債務水平的良好位置。話雖如此,負載足夠重,我們建議任何股東都要密切關注。資產負債表顯然是分析債務時應重點關注的領域。然而,並非所有的投資風險都存在於資產負債表中——遠非如此。例如,在投資這裏之前,我們已經發現Utz Brands有1個警告標誌,您應該注意。
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,如果您是那種喜歡購買沒有債務負擔的股票的投資者,那麼不要猶豫,立即發現我們獨家的淨現金增長股票列表。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
對本文有反饋?關於內容有所顧慮?直接和我們聯繫。或電郵 editorial-team (at) simplywallst.com。
這篇文章是Simply Wall St的一般性文章。我們根據歷史數據和分析師預測提供評論,只使用公正的方法論,我們的文章並不意味着提供任何金融建議。文章不構成買賣任何股票的建議,也不考慮您的目標或您的財務狀況。我們的目標是帶給您基本數據驅動的長期關注分析。請注意,我們的分析可能不考慮最新的價格敏感公司公告或定性材料。Simply Wall St沒有任何股票頭寸。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
對本文有反饋?關於內容有所顧慮?直接和我們聯繫。或者,也可以發送電子郵件至editorial-team@simplywallst.com