Tag Archives: Grenke

Silver Chef (ISIN AU000000SIV4) – The “Better Grenke” from Down Under ?

Following my previous posts on Australian stocks and Australian leasing companies in particular, it is not a big suprise that my first Australian investment is an Australian leasing/financing company called Silver Chef.

The company / the business

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Silver Chef is an Australian company which according to the website “delivers equipment funding solutions that help small businesses reach their full potential.”

The company went public in 2005. Some key figures (at 9,20 AUD/stock)

Market cap: 323 mn AUD
P/E 2014/2015: 15,2,
P/B 3,11
Div. Yield 5,7%EV/EBIT 20,2
EV/EBITDA 4,9

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Free cashflow reporting: Doing it “Grenke style” (Grenke, Silver Chef)

After my post about Australian Leasing companies a few days ago, I decided to start with Silver Chef, a company I found interesting.

Negative Free cash flow at Silver Chef

As many other value investors have, I have incorporated the concept of Free Cash flow into my investment process. A company which produces great earnings but no free cash flow is often a big red flag (see for instance the Globo Plc case)

So a first look at Silver Chef seems to indicate that they  have a big problem. Great earnings but negative free cash flows and increasingly so:

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