Quote:
Originally Posted by jyl
Info on M -
Cash $1.3BN, debt ST $1.6BN and LT $8.8BN
L4Q FCF $1.3BN, 39% trailing FCF yield on $3.3BN mkt cap
Debt/EBITDA is 3.3X and EBITDA/IntExp is 5.5X.
$950MM debt matures 2009, about $200MM matures 2010.
Price/Sales appx 0.12X, at lows of 1990/91 for typical multiline retailer
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I haven't researched M, but if I were looking at them as a potential stock purchase, besides looking at their corporate debt, I'd be looking at any exposure they have in the "consumer credit market."
What exposure do they have to potential defaults on their store credit cards? How is such debt accounted for right now? Could there suddenly be some unexpected write-down from defaults on store cards that would surprise investors?