We Think RCI Hospitality Holdings (NASDAQ:RICK) Is Taking Some Risk With Its Debt
We Think RCI Hospitality Holdings (NASDAQ:RICK) Is Taking Some Risk With Its Debt
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. We can see that RCI Hospitality Holdings, Inc. (NASDAQ:RICK) does use debt in its business. But should shareholders be worried about its use of debt?
禾倫·巴菲特曾經說過,「波動性與風險遠非同義詞」。當你評估一個公司的風險時,考慮到債務往往伴隨企業倒閉,查看公司資產負債表是很自然的。我們可以看到,rci hospitality holdings(納斯達克:RICK)在業務中確實使用了債務。但股東們應該擔心它使用債務嗎?
When Is Debt Dangerous?
債務何時有危險?
Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. The first step when considering a company's debt levels is to consider its cash and debt together.
債務可以幫助企業,直到企業無法通過新資本或自由現金流償付債務爲止。在最糟糕的情況下,如果一家公司無法償還債權人,它可以破產。雖然這不太常見,但我們經常看到負債累累的企業因爲貸款人迫使它們以惡性價格籌集資本而永久稀釋股東的利益。當然,債務可以成爲企業重要的工具,特別是對於重資產的企業而言。考慮企業債務水平的第一步是同時考慮其現金和債務。
How Much Debt Does RCI Hospitality Holdings Carry?
rci hospitality holdings承擔多少債務?
As you can see below, RCI Hospitality Holdings had US$245.4m of debt, at June 2024, which is about the same as the year before. You can click the chart for greater detail. However, because it has a cash reserve of US$34.9m, its net debt is less, at about US$210.5m.
正如您在下面看到的,rci hospitality holdings於2024年6月擁有24540萬美元的債務,與前一年大致相同。您可以點擊圖表查看更詳細的信息。然而,由於其有3490萬美元的現金儲備,其淨債務要少一些,大約是21050萬美元左右。
How Healthy Is RCI Hospitality Holdings' Balance Sheet?
RCI Hospitality Holdings的資產負債表健康情況如何?
The latest balance sheet data shows that RCI Hospitality Holdings had liabilities of US$57.7m due within a year, and liabilities of US$272.3m falling due after that. Offsetting these obligations, it had cash of US$34.9m as well as receivables valued at US$7.06m due within 12 months. So its liabilities outweigh the sum of its cash and (near-term) receivables by US$288.1m.
最新的資產負債表數據顯示,RCI Hospitality Holdings短期債務爲5770萬美元,長期債務爲27230萬美元。 抵消這些負債,其現金爲3490萬美元,以及12個月內到期的應收賬款價值爲706萬美元。 因此,其負債比其現金和(短期)應收賬款的總和高出28810萬美元。
This is a mountain of leverage relative to its market capitalization of US$417.5m. Should its lenders demand that it shore up the balance sheet, shareholders would likely face severe dilution.
相對於其市值爲41750萬美元,這是一座負債之山。 如果其債權人要求其加強資產負債表,股東可能面臨嚴重稀釋。
We use two main ratios to inform us about debt levels relative to earnings. The first is net debt divided by earnings before interest, tax, depreciation, and amortization (EBITDA), while the second is how many times its earnings before interest and tax (EBIT) covers its interest expense (or its interest cover, for short). Thus we consider debt relative to earnings both with and without depreciation and amortization expenses.
我們使用兩個主要的比率來告訴我們相對於收益的債務水平。第一個是淨債務除以利息、稅、折舊和攤銷前利潤(EBITDA),而第二個是其利潤前利息和稅(EBIT)覆蓋其利息費用的次數(或其利息覆蓋率,簡稱)。因此,我們考慮與折舊和攤銷費用相關的盈利以及沒有相關費用的盈利相對於債務水平。
While we wouldn't worry about RCI Hospitality Holdings's net debt to EBITDA ratio of 3.8, we think its super-low interest cover of 2.4 times is a sign of high leverage. It seems clear that the cost of borrowing money is negatively impacting returns for shareholders, of late. Worse, RCI Hospitality Holdings's EBIT was down 40% over the last year. If earnings keep going like that over the long term, it has a snowball's chance in hell of paying off that debt. The balance sheet is clearly the area to focus on when you are analysing debt. But it is future earnings, more than anything, that will determine RCI Hospitality Holdings's ability to maintain a healthy balance sheet going forward. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
雖然我們不會擔心RCI Hospitality Holdings的淨債務與EBITDA比率爲3.8,但我們認爲其超低利息覆蓋率爲2.4倍表明了高槓杆債務。 似乎清楚地看到,借款成本負面影響了股東的回報。 更糟糕的是,RCI Hospitality Holdings的EBIT在過去一年下降了40%。 如果收入長時間保持這種狀況,那麼償還債務的機會微乎其微。 分析債務時,資產負債表顯然是要重點關注的領域。 但重要的是未來收入,最終會決定RCI Hospitality Holdings未來能否保持健康的資產負債表。 因此,如果想了解專業人士的看法,您可能會發現對分析師盈利預測的免費報告很有趣。
But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. So we clearly need to look at whether that EBIT is leading to corresponding free cash flow. Looking at the most recent three years, RCI Hospitality Holdings recorded free cash flow of 49% of its EBIT, which is weaker than we'd expect. That's not great, when it comes to paying down debt.
但我們的最終考慮也很重要,因爲公司無法用虛擬利潤償還債務;它需要現金。 因此,我們明顯需要看看EBIt是否帶來相應的自由現金流。 回顧最近的三年,RCI Hospitality Holdings的自由現金流佔其EBIt的比率爲49%,這比我們預期的要弱。 在償還債務方面,這並不理想。
Our View
我們的觀點
Mulling over RCI Hospitality Holdings's attempt at (not) growing its EBIT, we're certainly not enthusiastic. But at least its conversion of EBIT to free cash flow is not so bad. We're quite clear that we consider RCI Hospitality Holdings to be really rather risky, as a result of its balance sheet health. So we're almost as wary of this stock as a hungry kitten is about falling into its owner's fish pond: once bitten, twice shy, as they say. There's no doubt that we learn most about debt from the balance sheet. However, not all investment risk resides within the balance sheet - far from it. To that end, you should learn about the 4 warning signs we've spotted with RCI Hospitality Holdings (including 1 which is potentially serious) .
考慮到 rci hospitality holdings 試圖(不)增長其 EBIt,我們確實不太熱情。 但至少它將 EBIt 轉化爲自由現金流的能力並不那麼糟糕。 我們非常清楚,由於其資產負債表健康狀況,我們認爲 rci hospitality holdings 實際上相當風險。 因此,我們對這支股票幾乎像飢餓的小貓對待掉進主人魚塘裏一樣警惕:俗話說得好,吃一塹長一智。 毫無疑問,我們從資產負債表中最能了解債務情況。 但並非所有投資風險都存在於資產負債表內 - 遠非如此。 爲此,您應該了解我們發現的 rci hospitality holdings 存在的 4 個警告信號(其中 1 個可能相當嚴重)。
When all is said and done, sometimes its easier to focus on companies that don't even need debt. Readers can access a list of growth stocks with zero net debt 100% free, right now.
當一切塵埃落定時,有時更容易專注於那些甚至不需要債務的公司。讀者可以立即免費查看零淨債務的成長股列表。
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Simply Wall St的這篇文章是一般性質的。我們僅基於歷史數據和分析師預測提供評論,使用公正的方法,我們的文章並非意在提供財務建議。這並不構成買入或賣出任何股票的建議,並且不考慮您的目標或財務狀況。我們旨在爲您帶來基於基礎數據驅動的長期聚焦分析。請注意,我們的分析可能未考慮最新的價格敏感公司公告或定性材料。Simply Wall St對提及的任何股票都沒有持倉。
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