TOL Gases Ltd Valuation Report - December 2022
In a capital intensive industry cash is king. TOL Gases has a solid business, but cash flow challenges threaten the sustainability of the company’s dividend policy and historical payout ratios. The company restructured credit facilities five times in the last six years, including revolving unmatured facilities, and violated covenants of one facility in 2020. Cash flow challenges weigh in on the company’s fair value, and is the main reason we issue a SELL recommendation for TOL Gases despite immense potential of industrial and medical gases within the region.
| Category: | Tanzania | DSE |
| File Size: | 484.09 KB |
| Created Date: | 13-01-2023 |
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