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Events relating to the possibility of customer demand fluctuations, supply chain constraints, continuing inflationary pressures, the effects of foreign currency fluctuations and high interest rates, the potential of another U.S. government shutdown and the economic impacts, volatility and uncertainty resulting therefrom, geopolitical uncertainties including continuing hostilities and tensions, …
Operating margin is thin at 2.86%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue growth slowed to 0.1%, essentially flat. Margins also contracted 1.3pp. This is a business that needs a catalyst.
Free cash flow declined 44% versus the prior year, cash generation momentum has weakened. ROIC dropped from 5.81% to 2.69%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$2.70B
▲ +0.1% YoY
Net Income (TTM)
$34M
▼ -60.8% YoY
Op. Margin
3.19%
▼ -1.3pp YoY
ROIC
3.41%
▼ -3.1pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$91M
▼ -44.1% YoY
Op. Cash Flow (TTM)
$139M
▼ -34.5% YoY
Net Debt
-$2M
Net Cash Position
Cash & Equiv.
$325M
5Y CAGR: +5.3%
5Y CAGR: +0.6%
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