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.
戴维·艾本提出了一个好观点:'波动性不是我们关心的风险,我们关心的是避免资本永久损失。' 因此,当你思考任何给定股票的风险时,需要考虑债务,因为过多的债务可能会使公司陷入困境。我们注意到SiteOne景观供应公司 (NYSE:SITE) 的负债表上确实存在债务。但真正的问题是,这些债务是否会使公司变得风险更大。
When Is Debt Dangerous?
债务何时有危险?
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.
当企业无法通过自由现金流或以有吸引力的价格筹集资本来轻松履行债务义务时,债务和其他负债会对企业构成风险。资本主义的一部分是“创造性破坏”的过程,即银行家无情地清算破产的企业。但更常见(但仍然昂贵)的情况是,一家公司必须以低廉的股价稀释股东,以便控制债务。当然,负债的好处在于它通常代表着廉价的资本,特别是当它代替公司具有以高回报率重新投资的能力时。当我们考虑公司使用债务时,我们首先关注现金和债务。
What Is SiteOne Landscape Supply's Debt?
SiteOne景观供应公司的债务是多少?
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景观供应公司在2024年3月的债务为4.48亿美元,比前一年的5.629亿美元有所下降。然而,它确实有5020万美元的现金抵消这笔债务,导致净债务约为3978万美元。
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How Strong Is SiteOne Landscape Supply's Balance Sheet?
SiteOne景观供应公司的资产负债表强度如何?
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.
放大最新的资产负债表数据,我们可以看到SiteOne景观供应公司有6,700万美元的负债在12个月内到期,837.6万美元的负债超过12个月到期。在另一方面,它有5020万美元的现金和531.3万美元的应收账款到期于一年内。因此,它的负债超过现时现金和应收账款的总和约为926.1万美元。
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.
当然,SiteOne景观供应公司的市值为6.34亿美元,因此这些负债可能是可管理的。但有足够的负债,我们肯定建议股东继续监控资产负债表的情况。
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.
我们通过将公司的净债务与其息税折旧摊销前利润(EBITDA)相除,并计算其息税前利润(EBIT)如何覆盖其利息费用(利息覆盖率)来衡量公司的债务负担相对于其盈利能力。因此,我们同时考虑债务的绝对数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.
净债务只有EBITDA的1.1倍,SiteOne景观供应公司的杠杆率可能相当保守。乐观的是,利息覆盖范围非常坚实,过去一年的EBIT对利息支出的覆盖范围是8.7倍。因为EBIT在过去一年减少了22%,所以SiteOne景观供应公司的负载并不重。当公司看到其盈利下降时,有时会发现与贷方的关系变得恶化。当分析债务水平时,资产负债表是显而易见的开始。但是,未来的收益,而不是其他任何东西,将决定SiteOne景观供应公司未来维持健康资产负债表的能力。因此,如果您关注未来,可以查看此自由报告,显示分析师的利润预测。
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,我们最终的考虑也很重要,因为公司不能用纸上利润支付债务,它需要有现金。因此,我们清楚地需要查看EBIT是否导致相应的自由现金流。在最近的三年中,SiteOne景观供应公司记录了价值相当于64%EBIT的自由现金流,这是正常的,因为自由现金流不包括利息和税收。这些自由现金流使公司处于偿还债务的有利位置。
Our View
我们的观点
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景观供应公司的EBIT增长率实际上是这项分析中的负面因素,尽管我们考虑的其他因素要好得多。毫无疑问,它有足够的能力将EBIT转化为自由现金流。当我们考虑上述所有因素时,我们对SiteOne景观供应公司使用债务的方式有些谨慎。虽然我们认为债务可以增强股本回报,但我们建议股东密切关注其债务水平,以免增加。随着时间的推移,股价往往会跟随每股盈利,因此如果您有兴趣研究SiteOne景观供应公司,可以单击此处查看其每股盈利历史的交互图表。
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.
说到底,有时更容易关注那些甚至不需要债务的公司。读者可以免费查看零净债务增长股票列表,立即获得。
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这篇文章是Simply Wall St的一般性文章。我们根据历史数据和分析师预测提供评论,只使用公正的方法论,我们的文章并不意味着提供任何金融建议。文章不构成买卖任何股票的建议,也不考虑您的目标或您的财务状况。我们的目标是带给您基本数据驱动的长期关注分析。请注意,我们的分析可能不考虑最新的价格敏感公司公告或定性材料。Simply Wall St没有任何股票头寸。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
对本文有反馈?对内容感到担忧?请直接与我们联系。或者,发送电子邮件至editorial-team@simplywallst.com。