Hi. I have a technical question. I would like to buy lindbergh on IBKR, but it shows that order quantity should be a multiple of board lot. It does not work even if i want 100 shares. Do you you something about it? Thanks
Great write up, thanks David! What do you make of the recent sell from the Chairman/CoFounder who decreased his holding from over 26.3% to 22.3%. The announcement says that two institutional investors bought the shares. Do you see this as net positive or net negative? Thanks!
Thank you! A net negative. My best guess is that Marco is in need of cash (for some personal reason or something), as he first sold some to Michele and then some to an institution.
Very interesting, thanks! Sounds like a great co with great management.
You estimate "high single-digit EV/owner earnings (FY ’23)", I'm having trouble figuring out how you arrived at that, because it implies owner earnings of say €2M, but net income and FCF are far below that (TTM). Would you mind giving me a pointer on how you get to that owner earnings estimate?
Thank you, Jaap! Basically, your average OCF/EBITDA conversion should be at least 85% and growing as you scale due to more favorable A/P vs. A/R days outstanding. Your maintenance capex requirements are negligible (no more than 0.5 million a year), but you could increase them to be conservative. Lindbergh did 1.8 million in EBITDA in H12023 alone, and management has said:"Also, the second half year is expected to bring about an increase in Group business, with the same intensity as the first six-month period. More specifically, the Waste Management/Circular Economy BU is expected to grow well.
Add it all up, and voilà.
Btw, I didn't calculate the normalized earnings this way, but I think it's still a decent simplified framework for how one can think about it. If I do decide to share the calculation, I'll do it via post so I can properly explain why and how I did what
You'll find the "best" info and most thoroughly explained notes in the prospectus. Also, if something doesn't make sense to you, IR is very helpful in providing necessary info
I was trying to tease out a reasonable number for maintenance capex, but failed. Looking at the cash flow statements there's lots of "investments in (tangible/intangible/financial) assets", but I can't find much detail on what those are.
If those "investments" are mostly just them acquiring businesses (like France, Hinet, SMIT, etc) then it makes sense that "actual" capex would be quite low, but I can't really find any data on that. Am I looking in the wrong place?
Hi. I have a technical question. I would like to buy lindbergh on IBKR, but it shows that order quantity should be a multiple of board lot. It does not work even if i want 100 shares. Do you you something about it? Thanks
Hi Matej. From memory, I believe the smallest lot is 1000 shares so if you want in you'd have to buy (a multiple of) 1000 shares
Great write up, thanks David! What do you make of the recent sell from the Chairman/CoFounder who decreased his holding from over 26.3% to 22.3%. The announcement says that two institutional investors bought the shares. Do you see this as net positive or net negative? Thanks!
Thank you! A net negative. My best guess is that Marco is in need of cash (for some personal reason or something), as he first sold some to Michele and then some to an institution.
Very interesting, thanks! Sounds like a great co with great management.
You estimate "high single-digit EV/owner earnings (FY ’23)", I'm having trouble figuring out how you arrived at that, because it implies owner earnings of say €2M, but net income and FCF are far below that (TTM). Would you mind giving me a pointer on how you get to that owner earnings estimate?
Cheers!
Thank you, Jaap! Basically, your average OCF/EBITDA conversion should be at least 85% and growing as you scale due to more favorable A/P vs. A/R days outstanding. Your maintenance capex requirements are negligible (no more than 0.5 million a year), but you could increase them to be conservative. Lindbergh did 1.8 million in EBITDA in H12023 alone, and management has said:"Also, the second half year is expected to bring about an increase in Group business, with the same intensity as the first six-month period. More specifically, the Waste Management/Circular Economy BU is expected to grow well.
Add it all up, and voilà.
Btw, I didn't calculate the normalized earnings this way, but I think it's still a decent simplified framework for how one can think about it. If I do decide to share the calculation, I'll do it via post so I can properly explain why and how I did what
You'll find the "best" info and most thoroughly explained notes in the prospectus. Also, if something doesn't make sense to you, IR is very helpful in providing necessary info
Gotcha, thanks a lot!
And adjust the leases, of course
Thanks David!
I was trying to tease out a reasonable number for maintenance capex, but failed. Looking at the cash flow statements there's lots of "investments in (tangible/intangible/financial) assets", but I can't find much detail on what those are.
If those "investments" are mostly just them acquiring businesses (like France, Hinet, SMIT, etc) then it makes sense that "actual" capex would be quite low, but I can't really find any data on that. Am I looking in the wrong place?