Great insights to the company. FYI there are 3 other write-ups on the name that each have a similar thesis overall, but with each one in its own flavor (and more condensed):
Could you provide a FCF reconciliation or details on how you calculated the FCF? Also, apologies if I missed it but do you think current capex approximates maintenance capex? I see depreciation that's a ton more than CapEx and I'm trying to understand that.
I think it's well explained in the article why D&A is temporarily much higher than maintenance capex and the reconciliation is done below. What else can I help with?
Current capex doesn't approximate maintenance capex but it's very close to it in FY2024. The only growth capex purchase they have done last year was LF160 rig that will be used for their decarbonisation efforts
Hey. I do still stand by my thesis but it is still the smallest position of mine. If next quarter confirms that 2024/2025 issues are temporary and that FY2025 really was indeed a transitional year, I’ll look to increase my position. I look forward to checking out your work!
Great insights to the company. FYI there are 3 other write-ups on the name that each have a similar thesis overall, but with each one in its own flavor (and more condensed):
https://roguefunds.substack.com/p/mitchell-services-is-a-potential-4-bagger-hidden-by-a-tax-write-off-scheme
https://valueinvestorsclub.com/idea/Mitchell_Services_Ltd/2377650240
https://overandunder.substack.com/p/mitchell-services-msv
Cheers
Thank you, Osten!
I read both Adrian's and Jacob's write-up. Great work by both of them!
Great Read!
Thanks!
Nit: Other expenses was actually $7M in FY24 ($5.4M in FY23). Let us know if you get an answer from them next week regarding this :)
You're right. My bad, I switched the two!
Great write-up, thank you!
Looking forward to your comments on your meeting with management.
Thanks Simon! I'll definitely be sharing them
Could you provide a FCF reconciliation or details on how you calculated the FCF? Also, apologies if I missed it but do you think current capex approximates maintenance capex? I see depreciation that's a ton more than CapEx and I'm trying to understand that.
I think it's well explained in the article why D&A is temporarily much higher than maintenance capex and the reconciliation is done below. What else can I help with?
Current capex doesn't approximate maintenance capex but it's very close to it in FY2024. The only growth capex purchase they have done last year was LF160 rig that will be used for their decarbonisation efforts
Loved this writeup! Very well done!
I'm glad you enjoyed it Sven! Thanks
Hey. I do still stand by my thesis but it is still the smallest position of mine. If next quarter confirms that 2024/2025 issues are temporary and that FY2025 really was indeed a transitional year, I’ll look to increase my position. I look forward to checking out your work!