We Think SiteOne Landscape Supply (NYSE:SITE) Can Stay On Top Of Its Debt
We Think SiteOne Landscape Supply (NYSE:SITE) 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.' So it might be obvious that you need to consider debt, when you think about how risky any given stock is, because too much debt can sink a company. We note that SiteOne Landscape Supply, Inc. (NYSE:SITE) does have debt on its balance sheet. But the real question is whether this debt is making the company risky.
戴維·艾本提出了一個好觀點:'波動性不是我們關心的風險,我們關心的是避免資本永久損失。' 因此,當你思考任何給定股票的風險時,需要考慮債務,因爲過多的債務可能會使公司陷入困境。我們注意到SiteOne景觀供應公司 (NYSE:SITE) 的負債表上確實存在債務。但真正的問題是,這些債務是否會使公司變得風險更大。
When Is Debt Dangerous?
債務何時有危險?
Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. 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. Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return. When we think about a company's use of debt, we first look at cash and debt together.
當企業無法通過自由現金流或以有吸引力的價格籌集資本來輕鬆履行債務義務時,債務和其他負債會對企業構成風險。資本主義的一部分是“創造性破壞”的過程,即銀行家無情地清算破產的企業。但更常見(但仍然昂貴)的情況是,一家公司必須以低廉的股價稀釋股東,以便控制債務。當然,負債的好處在於它通常代表着廉價的資本,特別是當它代替公司具有以高回報率重新投資的能力時。當我們考慮公司使用債務時,我們首先關注現金和債務。
What Is SiteOne Landscape Supply's Debt?
SiteOne景觀供應公司的債務是多少?
As you can see below, SiteOne Landscape Supply had US$448.0m of debt at March 2024, down from US$562.9m a year prior. However, it does have US$50.2m in cash offsetting this, leading to net debt of about US$397.8m.
如下所示,SiteOne景觀供應公司在2024年3月的債務爲4.48億美元,比前一年的5.629億美元有所下降。然而,它確實有5020萬美元的現金抵消這筆債務,導致淨債務約爲3978萬美元。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240719/0-5713512a09c377f3528ea8672994aa2f-0-94c1ecf3d088ff1e180fe5ea76e53b1a.png/big)
How Strong Is SiteOne Landscape Supply's Balance Sheet?
SiteOne景觀供應公司的資產負債表強度如何?
Zooming in on the latest balance sheet data, we can see that SiteOne Landscape Supply had liabilities of US$670.0m due within 12 months and liabilities of US$837.6m due beyond that. On the other hand, it had cash of US$50.2m and US$531.3m worth of receivables due within a year. So its liabilities outweigh the sum of its cash and (near-term) receivables by US$926.1m.
放大最新的資產負債表數據,我們可以看到SiteOne景觀供應公司有6,700萬美元的負債在12個月內到期,837.6萬美元的負債超過12個月到期。在另一方面,它有5020萬美元的現金和531.3萬美元的應收賬款到期於一年內。因此,它的負債超過現時現金和應收賬款的總和約爲926.1萬美元。
Of course, SiteOne Landscape Supply has a market capitalization of US$6.34b, so these liabilities are probably manageable. But there are sufficient liabilities that we would certainly recommend shareholders continue to monitor the balance sheet, going forward.
當然,SiteOne景觀供應公司的市值爲6.34億美元,因此這些負債可能是可管理的。但有足夠的負債,我們肯定建議股東繼續監控資產負債表的情況。
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). This way, we consider both the absolute quantum of the debt, as well as the interest rates paid on it.
我們通過將公司的淨債務與其息稅折舊攤銷前利潤(EBITDA)相除,並計算其息稅前利潤(EBIT)如何覆蓋其利息費用(利息覆蓋率)來衡量公司的債務負擔相對於其盈利能力。因此,我們同時考慮債務的絕對數量以及所支付的利率。
With net debt sitting at just 1.1 times EBITDA, SiteOne Landscape Supply is arguably pretty conservatively geared. And this view is supported by the solid interest coverage, with EBIT coming in at 8.7 times the interest expense over the last year. It is just as well that SiteOne Landscape Supply's load is not too heavy, because its EBIT was down 22% over the last year. When a company sees its earnings tank, it can sometimes find its relationships with its lenders turn sour. When analysing debt levels, the balance sheet is the obvious place to start. But it is future earnings, more than anything, that will determine SiteOne Landscape Supply'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.
淨債務只有EBITDA的1.1倍,SiteOne景觀供應公司的槓桿率可能相當保守。樂觀的是,利息覆蓋範圍非常堅實,過去一年的EBIT對利息支出的覆蓋範圍是8.7倍。因爲EBIT在過去一年減少了22%,所以SiteOne景觀供應公司的負載並不重。當公司看到其盈利下降時,有時會發現與貸方的關係變得惡化。當分析債務水平時,資產負債表是顯而易見的開始。但是,未來的收益,而不是其他任何東西,將決定SiteOne景觀供應公司未來維持健康資產負債表的能力。因此,如果您關注未來,可以查看此自由報告,顯示分析師的利潤預測。
But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. So we clearly need to look at whether that EBIT is leading to corresponding free cash flow. Over the most recent three years, SiteOne Landscape Supply recorded free cash flow worth 64% of its EBIT, which is around normal, given free cash flow excludes interest and tax. This free cash flow puts the company in a good position to pay down debt, when appropriate.
但是,我們最終的考慮也很重要,因爲公司不能用紙上利潤支付債務,它需要有現金。因此,我們清楚地需要查看EBIT是否導致相應的自由現金流。在最近的三年中,SiteOne景觀供應公司記錄了價值相當於64%EBIT的自由現金流,這是正常的,因爲自由現金流不包括利息和稅收。這些自由現金流使公司處於償還債務的有利位置。
Our View
我們的觀點
SiteOne Landscape Supply's EBIT growth rate was a real negative on this analysis, although the other factors we considered were considerably better. There's no doubt that it has an adequate capacity to convert EBIT to free cash flow. When we consider all the factors mentioned above, we do feel a bit cautious about SiteOne Landscape Supply's use of debt. While we appreciate debt can enhance returns on equity, we'd suggest that shareholders keep close watch on its debt levels, lest they increase. Over time, share prices tend to follow earnings per share, so if you're interested in SiteOne Landscape Supply, you may well want to click here to check an interactive graph of its earnings per share history.
SiteOne景觀供應公司的EBIT增長率實際上是這項分析中的負面因素,儘管我們考慮的其他因素要好得多。毫無疑問,它有足夠的能力將EBIT轉化爲自由現金流。當我們考慮上述所有因素時,我們對SiteOne景觀供應公司使用債務的方式有些謹慎。雖然我們認爲債務可以增強股本回報,但我們建議股東密切關注其債務水平,以免增加。隨着時間的推移,股價往往會跟隨每股盈利,因此如果您有興趣研究SiteOne景觀供應公司,可以單擊此處查看其每股盈利歷史的交互圖表。
When all is said and done, sometimes its easier to focus on companies that don't even need debt. Readers can access a list of growth stocks with zero net debt 100% free, right now.
說到底,有時更容易關注那些甚至不需要債務的公司。讀者可以免費查看零淨債務增長股票列表,立即獲得。
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?對內容感到擔憂?請直接與我們聯繫。或者,發送電子郵件至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?對內容感到擔憂?請直接與我們聯繫。或者,發送電子郵件至editorial-team@simplywallst.com。