UN is not a buy; 8% projected return is too low due to high debt, low ROIC, and operational risks.

It is in the process of completing a massive and risky $14.5 billion acquisition, and has just suffered a cyberattack that disrupted shipping operations. So, the big question is whether 5 to 6% growth is the new normal for this company, or is it a temporary low point before growth picks up again?

Guys, once again, it's a company with a market capitalization of $72 billion. The institution is valued at 91 billion, which is equivalent to $19 billion in debt, mainly. Free cash flow of 3.6% over the past year, and 2.2% over the past five years.

Therefore, it is slightly higher. It is about six times or five and a half times the free cash flow in terms of debt. What I like is that the free cash flow is almost the same as the net income over the past year.

The price-to-free cash flow is 20, and the price-to-earnings ratio is 20 , but these returns on capital are rather lukewarm . 5.7% annually for the past five years , and 7.3% last year.

Not bad, but not great either. In fact, the performance over the past five years has been extremely poor. Forget what I said. It's very bad.

Now, why has their profit margin jumped from 13% annually over the past ten years? It dropped to 12 % and then rose to 17.5% last year. This is something worth thinking about and considering in the future.

Members of our community currently consider this company to be in retention mode. But let's look at the eight pillars. Good. There are many negative things here. Yes, the cash flow is increasing.

Yes, net income is on the rise. Yes, revenues are rising, but everything else is not good . The existing stocks aren't bad, but guys, I don't know. This doesn't seem like an attractive buying opportunity to me yet . I may be wrong.

Interestingly, analysts predict its earnings will double from $3.40 to $7 over the next six years. Doubling in 6 years means a 12% growth in earnings per share. Revenue growth from 22 billion to 38 billion .

There don't seem to be many concerns about growth here. From 8 to 11% annually for the next seven or eight years. Therefore, analysts seem very optimistic about this in the long term.

Okay guys, once again I'm calculating a return for 10 years. I use revenue growth rates of 5%, 8% and 11%. So, I'm still allowing higher growth rates here in the end.

Next, the free cash flow profit margin. Guys, I feel comfortable with 12, 14, and 16. Not much higher at 14%, and if their new benchmark is 17% profit and free cash flow, that gives me a sufficient margin of safety .

Next, remember that these returns on capital are low. Therefore , I will not pay a price premium for this company. I still put 14, 17 and 20 because it is still a fairly good company .

You know, but I don't like her debt levels. I will actually change this . I would choose 13, 15 and 17. That may seem a little extreme, but with high debt and low returns on capital, I am not a fan of that.

And of course, my 9.5 percent return . Now, I will press the analyze button. The stock is currently at 49. I have a low at 27, a high at 66, and an average at 43. So, for me, guys, this 8% return is not worth it.