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Services-video tape rental company · E9 · FY ends Dec · Revenue $3.90B · 0.84% margin · $1M FCF
Operating margin is thin at 0.84%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue declined 2.5% YoY. Margins deteriorated 5.4pp alongside, both lines moving the wrong way.
Free cash flow declined 99% versus the prior year, cash generation momentum has weakened. ROIC dropped from 8.04% to 0.95%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$3.90B
▼ -2.5% YoY
Net Income (TTM)
-$30M
▼ -128.2% YoY
Op. Margin
0.84%
▼ -5.4pp YoY
ROIC
0.95%
▼ -7.1pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$1M
▼ -99.5% YoY
Op. Cash Flow (TTM)
$15M
▼ -94.8% YoY
Net Debt
$815M
Cash & Equiv.
$668M
5Y CAGR: -3.0%
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