This year, my forecast is that free cash flow will decline, but barely - to $114 million. It wouldn't take too much to move that figure above $117 million, which would flip its growth from negative to positive. With free cash flow growth expected to be negative, Safety Net assesses the stock a one-point penalty. If it turns out that Riley experiences positive free cash flow growth, that penalty will be removed. Now let's turn to the all-important payout ratio. With the amount of cash Riley is expected to bring in, can it afford to keep paying its dividend? |
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