PayPoint PLC results coming out tomorrow and here are a few things I have learned from the company: -
1. Apart from last year, PayPoint has made ROCE of 40% plus in the last decade;
2. It consistently generates more cash profits than accounting profits. Over a 10-year period, this averages 26% higher;
3. Since 2005, its dividends payments totalled £182m is fully covered by free cash flow generation £255m;
4. The disposal of its online and mobile payment services raised £40m. At the same time, it is upgrading their Epos platform for the first time in 12 years.
It means PayPoint would need to invest substantial amounts of money for manufacturing because there are no upfront payment costs if retail agents were to upgrade their PayPoint system. Instead, there would be a milestone payment of £20 per week for the next two years.
Source: http://ift.tt/2rQJiGv
Analysts are expecting 63 pence per share earnings, this gives a forward-PE of 15 times.
1. Apart from last year, PayPoint has made ROCE of 40% plus in the last decade;
2. It consistently generates more cash profits than accounting profits. Over a 10-year period, this averages 26% higher;
3. Since 2005, its dividends payments totalled £182m is fully covered by free cash flow generation £255m;
4. The disposal of its online and mobile payment services raised £40m. At the same time, it is upgrading their Epos platform for the first time in 12 years.
It means PayPoint would need to invest substantial amounts of money for manufacturing because there are no upfront payment costs if retail agents were to upgrade their PayPoint system. Instead, there would be a milestone payment of £20 per week for the next two years.
Source: http://ift.tt/2rQJiGv
Analysts are expecting 63 pence per share earnings, this gives a forward-PE of 15 times.
What you need to know about PayPoint ahead of tomorrow results
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