No, Rubis SCA does not have negative free cash flow. The company’s free cash flow is positive, as evidenced by its recent financial results:
For the trailing twelve months (TTM) ended in June 2024, Rubis SCA’s Free Cash Flow per Share was $3.69.
In the first half of 2024, Rubis reported a strong increase in cash flow from operating activities, reaching €286 million, which is an 18% increase compared to the same period in the previous year.
The company’s cash flow generation before cost of net financial debt and tax stood at €352 million in H1 2024, which is 6% higher than in H1 2023.
These figures indicate that Rubis SCA is generating positive free cash flow, demonstrating the company’s ability to generate cash from its operations after accounting for capital expenditures.
Sorry, my french is a bit rusty. Do you have a link to a cashflow statement?
Fun fact: asked AI when a concert of “El Drogas” was on a festival in Spain, Friday or Saturday. Answered that it was Friday. Buying the ticket they offered me 40 chips for beers if I bought tickets for both days, so I did. “El Drogas” was on Saturday. Never bothered to ask A.I. anything useful again.
Thanks a lot. That is one of the reasons I prefer U.S. listed stocks: the rules.
I think operating cashflow contains things that are probably not allowed in GAAP, not sure about that. I always check the details of the cashflow and have to correct some things.
I think financial costs must be contained in operating cashflow, so we have a difference of 84 million Euros there. Impact of change of working capital is a strange position too. Just in my head, I think the dividends are just a little over 100% of FCF.
There is one alarm sounding: the goodwill. It is higher than the share capital if I interpret the numbers correctly. Goodwill is probably the single most used position to cheat. Does not mean that they cheated, but it requires more investigation. What did they buy for that much more than it was “worth”?
So no, they would probably not make it into any of my mechanical portfolios. They would not make it anyhow as they are not listed on any U.S. stock market.
That’s an interesting one, thank you for pointing it out. After some quick research I could find the following about the content of the goodwill asset:
I see that the acquisitions were already partially written down, but there is still a lot of goodwill left. Not sure if the french rules are as hard as GAAP on having to write down goodwill. Anyhow, it is a position that will hurt earnings in the future.
Financial costs: interest is considered operating cost. You have to pay it and therefor it affects the operational cashflow. Again GAAP against French rules?
Cashflow is whatever cash comes in or goes out and financing costs are considered operational cashflow in GAAP because it is clearly cash going out. Probably not in French rules, but I don’t think the SEC would accept this in an official filing.
There is finance cashflow, but that is mainly new debt, paying dividends or paying back debt, issuing new shares or buying back share. But the position mentioned is not under finance cashflow but is deducted under operational cashflow.
I hope you see now why I limit my investing to U.S. listed stocks, it is just easier to compare.
A non-operating expense is a cost that isn’t directly related to core business operations. Examples of non-operating expenses are interest payments on debt, restructuring costs, inventory write-offs and payments to settle lawsuits. By recording non-operating expenses separately from operating expenses, stakeholders can get a clearer picture of company performance.
I always was under impression that interests belong to operating cashflow while issuing new debt or paying back debt are financing cash flows. Free cashflow (FCF) is operating cashflow minus investment cashflow. Dividends are financing cashflow.
Probably there is a difference in the term “operating expense” and “operating cashflow”. Interests are contained in operating cashflow but probably not in operating expense, which may be used for other statistical purposes, not for cashflow statements. Not sure if that makes sense?
What would be examples of financing costs that have no cash flow?
I have a hard time reading non-GAAP cashflow statements, probably I don’t interpret that correctly.
Let’s say you issue a zero coupon bond, aside from the initial cashflow when receiving the cash and the outflow when redeeming the bond, there are no cashflows in-between. But for accounting purposes, each year you need to recognise the implicit interest expense on the discounted price at issuance versus the price at redemption. Although there will be an expense in the P&L, there will be no corresponding cash flow.
Not sure how this situation would be handled in GAAP. I think the “interest” should be deducted from the operating cashflow and added to financial cashflow, even no cash changed hand. It affects the free cashflow.
In GAAP interest is added to operating cashflow, debt to finance cashflow. So there must be some kind of splitting in that situation, even if no cash changed hand.
I am sure that other bookkeeping rules allow this situation to be handled differently.
Not into stock picking as I don’t have the skill for it or the time to acquire the skill, but yesterday had this (GE Aerospace, not a click farmer here) flash across my screen and took a curious look. I guess whoever’s been holding it is pretty happy?
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For example there is the H1 2024 results: