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Miscellaneous electrical machinery, equipment & supplies company · MO · FY ends Sep · Revenue $2.98B · 21.48% margin · $159M FCF
Margins and capital returns are both well above average: 22.61% operating margin, ROIC at 17.23%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue growth slowed to 2.3%, essentially flat. This is a business that needs a catalyst.
Free cash flow declined 81% versus the prior year, cash generation momentum has weakened. Net debt of $3.33B represents 52.7x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$2.98B
▲ +2.3% YoY
Net Income (TTM)
$195M
▲ +527.3% YoY
Op. Margin
21.48%
▲ +3.7pp YoY
ROIC
16.52%
▲ +2.4pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$159M
▼ -80.9% YoY
Op. Cash Flow (TTM)
$231M
▼ -65.8% YoY
Net Debt
$3.28B
Cash & Equiv.
$173M
5Y CAGR: +1.5%
5Y CAGR: -27.3%
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