against<\/em> it is the negative free cash flow. The enterprise value to market cap is also the highest amongst the five stocks I’ve looked at. The trailing twelve month (TTM) operating cashflow is $24.969 billion and capital spending is $25 billion. This results in a negative $0.34 billion in free cash flow. <\/p>\n\n\n\nGazprom’s five year average free cash flow has been $3.62 billion and they could increase free cashflow by trimming their capital spending if needed.<\/p>\n\n\n\n
If I add their FCF history to the firm’s stellar operating margin, high return on equity (ROE), and financially healthy current ratio, quick ratio, and dividend payout ratio I’m willing to overlook the lack of free cashflow in the last 2 years.<\/p>\n\n\n\n
Recent Price Action<\/h2>\n\n\n\n On 14 May 2019 Gazprom jumped up from around $5 to over $6 on the news management recommended increasing the dividend. This was the most price action the stock has seen in nearly a decade. <\/p>\n\n\n\n
Source: https:\/\/seekingalpha.com\/news\/3463497-dividend-proposal-boost-sends-gazprom-soaring<\/em><\/p>\n\n\n\nSince the 2008 financial crisis the stock price has traded sideways.<\/figcaption><\/figure><\/div>\n\n\n\nIf the dividend increase falls through the stock will likely give up these gains. I don’t know how likely that is to happen or if that is even a realistic possibility.<\/p>\n\n\n\n
Gazprom is the kind of boring, cashflow machine that doesn’t get a lot of attention from the mainstream but can help grow wealth.<\/p>\n\n\n\n
There are geopolitical risks, however, I think being a large supplier for Europe as well as increasing the capability to supply energy to China could offset these risks. <\/p>\n\n\n\n
Of course individuals need to make their own investment decisions based on what is suitable for their unique situation.<\/p>\n","protected":false},"excerpt":{"rendered":"
Most people aren’t willing to go back to a pre-industrial standard of living and so energy is very important. Nuclear energy is deemed too dangerous by many and solar and wind are niche players. This leaves fossil fuels. Until we get Mr. Fusion to run cars and power electronics big energy companies will continue to […]<\/p>\n","protected":false},"author":2,"featured_media":4526,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[155,46],"tags":[332,333,331,48],"yoast_head":"\n
Big Oil Battle - HowIGrowMyWealth.com<\/title>\n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n\t \n\t \n\t \n