Q: Thank you for your earlier response. This is a follow up question to that response. Should your free cash flow numbers be multiplied by 1.35 since results for SPB are quoted in US dollars and the share price of $7.94 is in Canadian dollars? Then full-year 2025 FCF yield would be approximately 14.8%. Am I correct or am I making mistake? If I am correct, what do you think of this free cash flow yield?
5i Research Answer:
Yikes! Yes. We are short of coffee this morning, clearly. We have adjusted the prior post. It certainly is a good number. We also like the high proportion of buybacks. That being said, debt is high and no one liked the dividend cut. The stock has recovered though, and we think SPB is setting up well, providing revenue growth can pick up. Revenue in 2026 is going to be essentially at the same level as 2022.