UK Small Cap Serial Acquirer
the biggest problem with this company is that it cannot generate organic growth but needs to take on ever increasing debt and issue new equity to fund acquisitions to drive growth. hence the continuous equity dilution, and for almost flatlining growth? yikes
your growth expectation for this company is much more optimistic than the market. Looking at consensus free cash flow estimates from capital iq, futr's fcf cagr is expected to be 1.15% from 2023 to 2032. Important to note that growth is expected to decline by -1% consistently from 2027 to 2031. This could actually be positive tho if the company can surprise to the upside, but then again its valuation is not particularly attractive. what i am most concerned about is the moat of the business and wether it may get disrupted, particularly in the digital and e - commerce segments. digital ad is a competitive market which is always evolving fast. all in all this company seems to be a hold for me.
Great area to be in 👏👏