Revlon: The Company Needs Even More Debt Financing

Summary

  • Revlon, Inc. is the owner of several brands and seller of cosmetics, skin care, fragrance, and personal care products.
  • I assume that the company’s Global Growth Accelerator program will help the company improve its free cash flow margins.
  • Without sufficient innovative products and no transactions with third parties, future free cash flow will likely not be sufficient to pay the total debt outstanding.
  • We are talking about a company that is going through a reorganization process because of its level of debt.

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Revlon, Inc. (REV) surprised the market with several deals with debt holders, which made the stock price spike up from $2 to around $8 per share. I understand the optimism about the stock, but I invite investors to be

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I am a hedge fund analyst based in Romania. I love DCF models. I started trading at 13, and also traded for one large institution. I write investment research to help retail investors.Note that I don't give financial advice. Nothing contained in my articles should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.Feel free to reach out to me, via comments, on any questions you may have on my financial models.

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