Enviri (NYSE:NVRI) Use Of Debt Could Be Considered Risky
Enviri (NYSE:NVRI) Use Of Debt Could Be Considered Risky
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. We note that Enviri Corporation (NYSE:NVRI) does have debt on its balance sheet. But should shareholders be worried about its use of debt?
華倫•巴菲特曾經說過:“波動性與風險遠非同義詞。” 當我們考慮一家公司的風險程度時,我們總是喜歡看看它的負債使用情況,因爲負債過重可能會導致滅亡。 我們注意到Enviri Corporation(紐交所:NVRI)的資產負債表上確實有債務。 但股東們應該擔心它的債務使用嗎?
Why Does Debt Bring Risk?
爲什麼債務會帶來風險?
Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. If things get really bad, the lenders can take control of the business. However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. Of course, plenty of companies use debt to fund growth, without any negative consequences. The first step when considering a company's debt levels is to consider its cash and debt together.
通常情況下,公司只有當無法輕鬆償還債務時,才會真正遇到問題,無論是通過籌集資本還是利用自己的現金流。 如果情況變得非常糟糕,貸款人可以接管業務。 然而,更常見的情況(但仍然痛苦的情況)是它不得不低價發行新股票,從而永久性稀釋股東的利益。 當然,有很多公司使用負債來爲其業務增長提供資金支持,而沒有任何負面後果。 考慮公司的債務水平時的第一步是將其現金和債務一起考慮。
What Is Enviri's Debt?
Enviri的債務是什麼?
The image below, which you can click on for greater detail, shows that at March 2024 Enviri had debt of US$1.46b, up from US$1.37b in one year. On the flip side, it has US$106.1m in cash leading to net debt of about US$1.36b.
下圖(可點擊以獲取更多細節)顯示,2014年3月Enviri的債務達到了1.46億美元,比一年前的1.37億美元增加。 另一方面,它有1061萬美元的現金,導致淨負債約爲1.36億美元。
![big](https://newsfile.futunn.com/public/NN-PersistNewsContentImage/7781/20240716/0-ad7ab25b17ddeb2525852b8d4e9c39b3-0-bf358bfdd8e2fdafe16839d54ddfdcf6.png/big)
A Look At Enviri's Liabilities
看Enviri的負債
The latest balance sheet data shows that Enviri had liabilities of US$577.8m due within a year, and liabilities of US$1.67b falling due after that. Offsetting this, it had US$106.1m in cash and US$411.0m in receivables that were due within 12 months. So its liabilities total US$1.73b more than the combination of its cash and short-term receivables.
最新的資產負債表數據顯示,Enviri在一年內有要償還的577.8萬美元的債務,之後還有1.67億美元的債務。 相應地,它有1,061萬美元的現金和4,110萬美元的應收賬款,這些應收賬款在12個月內到期。 因此,其負債總額比其現金和短期應收賬款的組合多1.73億美元。
This deficit casts a shadow over the US$759.4m company, like a colossus towering over mere mortals. So we definitely think shareholders need to watch this one closely. At the end of the day, Enviri would probably need a major re-capitalization if its creditors were to demand repayment.
這種赤字讓這家價值7,594萬美元的公司像一座巨人一樣的壓在上面,威脅着它的生存。 所以,我們肯定認爲股東們需要密切關注這一點。 結束時,如果Enviri的債權人要求償還債務,則可能需要進行重大的資本重組。
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). The advantage of this approach is that we take into account both the absolute quantum of debt (with net debt to EBITDA) and the actual interest expenses associated with that debt (with its interest cover ratio).
BJ批發俱樂部控股公司的淨債務只有EBITDA的0.62倍。而其EBIT輕鬆覆蓋其利息費用,比例爲12.6倍。因此,我們對其超級保守的債務使用感到相當放心。雖然BJ批發俱樂部控股公司在EBIT方面沒有取得太多進展,但至少其盈利保持穩定。當分析債務水平時,資產負債表是顯然的切入點。但歸根結底,企業未來的盈利能力將決定BJ批發俱樂部控股公司能否隨着時間的推移加強資產負債表。因此,如果你要關注未來,可以查看一下這份免費的分析報告,了解分析師的盈利預測。
While Enviri's debt to EBITDA ratio (4.8) suggests that it uses some debt, its interest cover is very weak, at 1.1, suggesting high leverage. It seems that the business incurs large depreciation and amortisation charges, so maybe its debt load is heavier than it would first appear, since EBITDA is arguably a generous measure of earnings. It seems clear that the cost of borrowing money is negatively impacting returns for shareholders, of late. On the other hand, Enviri grew its EBIT by 27% in the last year. If it can maintain that kind of improvement, its debt load will begin to melt away like glaciers in a warming world. There's no doubt that we learn most about debt from the balance sheet. But it is future earnings, more than anything, that will determine Enviri'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.
儘管Enviri的債務至EBITDA比率(4.8)表明其使用了一些債務,但其利息覆蓋率非常薄弱,爲1.1,表明其槓桿率很高。 似乎該企業產生了大量的折舊和攤銷費用,因此因爲EBITDA是可爭議的收入測量標準,其債務負擔可能比首次出現時更重。 似乎借錢的成本對於股東的回報產生了負面影響。 另一方面,Enviri去年的EBIt增長了27%。 如果它能保持那種改進,其債務負擔將像溫暖的世界中的冰川一樣開始融化。從資產負債表中可以看出,債務是最重要的。但最終實現健康的資產負債表的能力還是由未來的收益決定的。 所以,如果您想了解專業人士的想法,您可能會發現此分析師盈利預測的免費報告很有趣。
Finally, while the tax-man may adore accounting profits, lenders only accept cold hard cash. So we always check how much of that EBIT is translated into free cash flow. During the last three years, Enviri burned a lot of cash. While investors are no doubt expecting a reversal of that situation in due course, it clearly does mean its use of debt is more risky.
最後,儘管稅務人員可能崇拜會計利潤,但貸款人只接受冰冷的現金。因此,我們總是檢查EBIt中有多少被轉化爲自由現金流。在過去的三年中,Enviri消耗了大量現金。儘管投資者無疑期望這種情況會逆轉,但這顯然意味着它的債務使用更加冒險。
Our View
我們的觀點
To be frank both Enviri's conversion of EBIT to free cash flow and its track record of staying on top of its total liabilities make us rather uncomfortable with its debt levels. But on the bright side, its EBIT growth rate is a good sign, and makes us more optimistic. We're quite clear that we consider Enviri 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. Given the risks around Enviri's use of debt, the sensible thing to do is to check if insiders have been unloading the stock.
老實說,Enviri的EBIt轉化爲自由現金流以及它掌控其總負債的記錄,使我們對其債務水平感到相當不舒服。但是,好的一面是,它的EBIt增長率是個好跡象,使我們更加樂觀。我們非常清楚,在健康的資產負債表方面,我們認爲Enviri的風險非常高。 因此,我們對於Enviri的股票也像飢餓的小貓掉進主人的魚塘中一樣小心翼翼:碰一次,會記一輩子。 考慮到Enviri使用債務的風險,明智的做法是查詢內部人員是否拋售股票。
If, after all that, you're more interested in a fast growing company with a rock-solid balance sheet, then check out our list of net cash growth stocks without delay.
如果您在所有這些工作之後,更感興趣於擁有堅實資產負債表的快速發展公司,請立即查看我們的淨現金成長股列表。
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
對本文有任何反饋?對內容有任何疑慮?請直接與我們聯繫。或者,發送電子郵件至editorial-team@simplywallst.com。
這篇文章是Simply Wall St的一般性文章。我們根據歷史數據和分析師預測提供評論,只使用公正的方法論,我們的文章並不意味着提供任何金融建議。文章不構成買賣任何股票的建議,也不考慮您的目標或您的財務狀況。我們的目標是帶給您基本數據驅動的長期關注分析。請注意,我們的分析可能不考慮最新的價格敏感公司公告或定性材料。Simply Wall St沒有任何股票頭寸。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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譯文內容由第三人軟體翻譯。