Good summary. One thing to note on the high working capital is that it's mostly highest-quality oak being dried/aged before processing. This means book value of NWC is materially understated if they were to liquidate their wood supply as these will become more valuable over time.
Yes, it's correct. Recently I read one interview with the current CEO and he said the same comment. However, my thoughts are more related to don't have a strong reinvestment capacity more than levels or value of the inventory. Thank you for read the post and for your comment! I appreciated it!
Gracias por la tesis. en abierto Empresa que cómo dices a largo plazo puede ir bien (esta un el PER más bajo de los últimos años), pero con mucho working Capital, y mucho CAPEX. NO me gusta
Gracias a ti por leerla y comentar! El WK más el capex actúa como barrera de entrada a competidores, pero deja poco lugar de reinversión. Ya depende de cada inversor valorar si la empresa es de la calidad que exije o no :)
Good summary. One thing to note on the high working capital is that it's mostly highest-quality oak being dried/aged before processing. This means book value of NWC is materially understated if they were to liquidate their wood supply as these will become more valuable over time.
Yes, it's correct. Recently I read one interview with the current CEO and he said the same comment. However, my thoughts are more related to don't have a strong reinvestment capacity more than levels or value of the inventory. Thank you for read the post and for your comment! I appreciated it!
Gracias por la tesis. en abierto Empresa que cómo dices a largo plazo puede ir bien (esta un el PER más bajo de los últimos años), pero con mucho working Capital, y mucho CAPEX. NO me gusta
Gracias a ti por leerla y comentar! El WK más el capex actúa como barrera de entrada a competidores, pero deja poco lugar de reinversión. Ya depende de cada inversor valorar si la empresa es de la calidad que exije o no :)