Hi @Pauli_Lohi and have a nice weekend.
I have been a Tamtron shareholder since the IPO and I’m fairly satisfied with the performance. I consider the dividend now announced to be high in relation to the company’s growth targets and cash flow. What do you think yourself, and am I on the right track with the approach below?
According to my calculations, the 2022–2025 free cash flow (adjusted for acquisitions from investments) has been about half of Inderes’ adjusted EPS. In the table below, 2022–2025 FCF is 0.69 / EPS (adj.) is 1.35.
If Tamtron’s annual EPS capability is now around €0.4 and half of that, i.e., €0.2, remains as free cash flow, then after a €0.15 dividend, only 1/4 of the free cash flow (€0.05/share) is left to be used for growth? So, is the company’s growth intended to be funded mainly through debt and its own shares?
On the other hand, could the free cash flow be higher relative to the result? Or is my thinking flawed in that the cash flow from investments also includes growth investments? Do you have a breakdown of the ratio of maintenance investments and growth investments within the total?
2022 2023 2024 2025
Cumulative EPS (adj.)
0.29 0.62 0.99 1.35
Cumulative OCF/Share
0.14 0.32 1.14 1.63
Cumulative FCF/Share
−0.10 −0.09 0.47 0.69