Wednesday, 26 November 2008

Sanitas has free cash flow yield of 30.6%

We have just screened out universe for Free Cash flow yields. There are some suprising results. One of the highest FCF yields is Sanitas, a Lithuanian company.

Sanitas is a Generic Pharmaceuticalcompany. It has modern manufacturing facilities in Lithuania, Slovakia and Poland, producing a variety of medicines often though of as defensive.

Not much wrong with the company, other than being in a small illiquid market exposed to foreign currency risk. The compny even converted its outstanding loans from banks Bank Polska Kasa Opieki S.A. and Bank Zachodni WBK at favourable terms. Maybe there is real value out there?

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