Q: I am a longterm holder of DOL. They should continue to prosper as long as they continue to execute as they have been doing.
The one concern we hear about is the company debt. I would appreciate your comments on risk going forward as it relates to this company's debt?
Thank you,
Patrick
The one concern we hear about is the company debt. I would appreciate your comments on risk going forward as it relates to this company's debt?
Thank you,
Patrick
5i Research Answer:
Current obligations (net of cash on hand) are $4.3B. Operating cash flow for the most recent 12 months was $1.5B. Free cash flow was $1.3B. While leveraged, considering its historically high free cash flow we would not see this level of debt as particularly problematic. Some debt has gone towards share buybacks, as well, with the number of shares down by nearly 90 million (to 277M) in the last decade. We would not see debt as a real concern here. If the company stopped buybacks it could pay down debt faster if it desired.