We Think Hillman Solutions (NASDAQ:HLMN) Can Stay On Top Of Its Debt
We Think Hillman Solutions (NASDAQ:HLMN) Can Stay On Top Of Its Debt
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' 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. We can see that Hillman Solutions Corp. (NASDAQ:HLMN) does use debt in its business. But the more important question is: how much risk is that debt creating?
禾倫·巴菲特曾經說過,“波動性還遠不能和風險劃等號。”當我們考慮一家公司的風險程度時,我們總是喜歡看一下它的債務使用情況,因爲債務過重會導致滅頂之災。我們可以看到,希爾曼解決方案公司(NASDAQ:HLMN)確實在業務中使用了債務。但更重要的問題是:這些債務帶來了多大的風險?
What Risk Does Debt Bring?
債務帶來了什麼風險?
Debt assists a business until the business has trouble paying it off, either with new capital or with free 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. Of course, plenty of companies use debt to fund growth, without any negative consequences. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.
債務一直可以幫助企業,直到企業無力償還新資金或自由現金流。如果公司無法履行償還債務的法律義務,股東可能什麼都拿不到。然而,更普遍(但仍然昂貴)的情況是,公司必須以便宜的股票價值稀釋股東權益,以控制債務。當然,很多公司利用債務資助增長,沒有任何負面影響。考慮到業務使用了多少債務,首先要做的是仔細查看其現金和債務。
What Is Hillman Solutions's Debt?
希爾曼解決方案的債務情況是什麼?
As you can see below, Hillman Solutions had US$752.3m of debt at March 2024, down from US$884.5m a year prior. However, it also had US$30.7m in cash, and so its net debt is US$721.7m.
正如您下面可以看到的,希爾曼解決方案在2024年3月有7.5億美元的債務,較去年同期的8.845億美元有所下降。然而,它還有3070萬美元的現金,因此淨債務爲7.217億美元。
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How Strong Is Hillman Solutions' Balance Sheet?
希爾曼解決方案的資產負債表有多強大?
The latest balance sheet data shows that Hillman Solutions had liabilities of US$236.2m due within a year, and liabilities of US$968.9m falling due after that. Offsetting these obligations, it had cash of US$30.7m as well as receivables valued at US$127.3m due within 12 months. So it has liabilities totalling US$1.05b more than its cash and near-term receivables, combined.
最新的資產負債表數據顯示,希爾曼解決方案有US$2.362億的負債在一年內到期,有US$9.689億的負債在之後到期。抵消這些負債,它有US$3,070萬現金以及US$1.273億的應收賬款在12個月內到期。因此,它的負債總額比其現金和短期應收賬款總額多了1.05億美元。
This deficit isn't so bad because Hillman Solutions is worth US$1.92b, and thus could probably raise enough capital to shore up its balance sheet, if the need arose. But it's clear that we should definitely closely examine whether it can manage its debt without dilution.
這種赤字並不太糟糕,因爲希爾曼解決方案價值19.2億美元,因此如果需要,可能可以籌集足夠的資本來支持其資產負債表。但顯然,我們確實需要仔細檢查它是否能夠在不稀釋的情況下管理其債務。
In order to size up a company's debt relative to its earnings, we calculate its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and its earnings before interest and tax (EBIT) divided by its interest expense (its 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).
爲了衡量公司相對於其收益的債務情況,我們計算其淨負債除以利息、稅項、折舊和攤銷前收益(EBITDA)和其利息支出除以利息前收益(EBIT)的比例(其利息覆蓋率)。這種方法的優點是,我們既考慮了債務的絕對量(淨負債與 EBITDA),又考慮到了與該債務相關的實際利息支出(其利息覆蓋率)。
While Hillman Solutions's debt to EBITDA ratio (3.4) suggests that it uses some debt, its interest cover is very weak, at 1.4, suggesting high leverage. It seems that the business incurs large depreciation and amortisation charges, so maybe its debt load is heavier than it would first appear, since EBITDA is arguably a generous measure of earnings. So shareholders should probably be aware that interest expenses appear to have really impacted the business lately. The good news is that Hillman Solutions grew its EBIT a smooth 31% over the last twelve months. Like the milk of human kindness that sort of growth increases resilience, making the company more capable of managing debt. The balance sheet is clearly the area to focus on when you are analysing debt. But it is future earnings, more than anything, that will determine Hillman 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.
儘管希爾曼解決方案的債務與EBITDA比率(3.4)表明它使用了一些債務,但它的利息覆蓋率非常薄弱,爲1.4,表明它具有高槓杆作用。似乎該業務產生了大量的折舊和攤銷費用,因此或許其債務負擔比首次表現的來得要重,因爲EBITDA可以說是一項慷慨的盈利指標。因此,股東們應該真正意識到,利息費用似乎最近確實對業務產生了真正的影響。好消息是,希爾曼解決方案在過去的12個月裏平穩增長了31%的EBIt。這樣的增長,像人類善良的乳汁一樣,增加了韌性,使公司更能夠管理債務。當您分析債務時,顯然要重點關注資產負債表。但更重要的是未來的收益,這將決定希爾曼解決方案在未來能否保持健康的資產負債表。因此,如果您關注的是未來,可以查看這份免費的分析師盈利預測報告。
Finally, a company can only pay off debt with cold hard cash, not accounting profits. So we clearly need to look at whether that EBIT is leading to corresponding free cash flow. Over the most recent three years, Hillman Solutions recorded free cash flow worth 52% of its EBIT, which is around normal, given free cash flow excludes interest and tax. This cold hard cash means it can reduce its debt when it wants to.
最後,公司只能用冰冷的現金而不是會計利潤償還債務。因此,我們明顯需要看一下EBIt是否導致了相應的自由現金流。在過去的三年中,希爾曼解決方案錄得的自由現金流值相當於其EBIt的52%,這大約是正常水平,因爲自由現金流不包括利息和稅收。這種冰冷的現金意味着它可以在想要時減少其債務。
Our View
我們的觀點
On our analysis Hillman Solutions's EBIT growth rate should signal that it won't have too much trouble with its debt. However, our other observations weren't so heartening. To be specific, it seems about as good at covering its interest expense with its EBIT as wet socks are at keeping your feet warm. Looking at all this data makes us feel a little cautious about Hillman Solutions's debt levels. While we appreciate debt can enhance returns on equity, we'd suggest that shareholders keep close watch on its debt levels, lest they increase. We'd be motivated to research the stock further if we found out that Hillman Solutions insiders have bought shares recently. If you would too, then you're in luck, since today we're sharing our list of reported insider transactions for free.
根據我們的分析,希爾曼解決方案的EBIt增長率應該表明它不會在債務方面遇到太多問題。但我們的其他觀察結果並不那麼令人振奮。具體而言,它的EBIt與利息費用的覆蓋率似乎像溼襪子一樣不適於保暖。查看所有這些數據使我們對希爾曼解決方案的債務水平感到有些謹慎。雖然我們知道債務可以增加股本回報,但我們建議股東們密切關注其債務水平,以免其增加。如果我們發現希爾曼解決方案的內部人士最近購買了股票,則會有動力進一步研究該股票。如果您也想了解更多,請訪問今天我們免費分享的上報內部交易清單。
If, after all that, you're more interested in a fast growing company with a rock-solid balance sheet, then check out our list of net cash growth stocks without delay.
如果您在所有這些工作之後,更感興趣於擁有堅實資產負債表的快速發展公司,請立即查看我們的淨現金成長股列表。
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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.
對本文有任何反饋?對內容有任何疑慮?請直接與我們聯繫。或者,發送電子郵件至editorial-team@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
對本文有任何反饋?對內容有任何疑慮?請直接與我們聯繫。或者,發送電子郵件至editorial-team@simplywallst.com。