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The problem with a No-Brainer Investment (NBI) is that most people won’t agree with you. That is also the reason why it is a No-Brainer in the first place. You must be comfortable and confident about it. 
A NBI is one which provides you with a cash yield of double, triple, or more the cash you can get from a bank fixed deposit interest, in a consistent manner. Kcchongnz
 
The screenshot below shows the latest cash flows statement for Opensys, an undervalued market leader with high ROE that is off the radar screen of most investors. Appendix 1 is the background of Opensys.
 
FCF is whatever cash is left after all operating expenses, including capital expenses for growth, like buying new plant and machineries. FCF is like the end all goal of companies. The point is to do so well that you make so much money that even after all the checks written to expand the business you still have a lot of cash. With this FCF a company can pay out dividend consistently, buy back its shares when they are selling cheap, pare down loans, or invest in other profitable ventures, all done without assuming more debts, or issuing more shares.
Thanks to kcchongnz, I had look past PE ratio. Appendix 2 shows the definitions and explanations of the key terms.
 
Opensys’ free cash flow and cash yield
FCF = CFFO – Net Capex
Cash flows from operations (CFFO) was RM20.9 million last year, way much higher than the net profit of RM10 million. Net capex remained the same at RM6 million.
CY = Free cash flow (FCF) / Price
FCF for Opensys surged 48% to RM14.8 million last year as compared to RM10 million in the previous year. At 33 sen, the cash yield (CY) is 15.1%.
Based on the CY of 15.1%, is Opensys a No-Brainer Investments? 
 
A CY of more than 5% investing in a stock is good as it is more than the return from the fixed deposit in banks, and it is in cash too. A CY of 10% and above would be excellent investment Kcchongnz
 
 
Appendix 1
 
OpenSys (M) Bhd is a micro-cap company with a still small but rapidly growing revenue base that is off the radar screen of most institutional investors. 
Since listed in 2004, its net profit has been on a tear while revenue more than quadrupled from RM20.3 million to RM95.4 million over 14 years. The better economies of scale, coupled with improving margins, also helped propel its return on equity (ROE) by an impressive 16 percentage points to 18%. 
Today, the company counts among its clients all major banks in the country, such as Maybank, Public Bank, Hong Leong Bank and United Overseas Bank, and insurance and telecommunications companies.
OpenSys has the largest installed base of cash recycling machines, with close to 80% market share in Malaysia and has to date installed more than 2,600 machines. Currently the total number of ATMs andCDMs in Malaysia is 17,500 units with annual growth of about 5%.
CRMs are dual-function machines that merge the cash dispensing functions of ATMs and the cash deposit functions of CDMs. Banks are benefitting from the cost- effectiveness of CRMs in areas of cost of ownership, lower cash holding and reduction in cash handling cost. These significant savings have been a major driving factor for banks to undertake major fleet replacement and consolidation, resulting in the exponential growth of CRMs. In the last five years, the total number of CRMs in the market has grown exponentially with a Compound Annual Growth Rate (CAGR) of close to 40 percent.
The emerging and evolving technologies in the marketplace will fuel new possibilities for OpenSys. The versatility of CRMs will see the adoption of digital technologies and the rise of new value-added services using new digital methods of authentication and service fulfilment such as biometrics, contactless and cardless technologies, QR codes and complementary mobile apps.
OpenSys has been working closely with the banks to incorporate new technologies and services. This opens up tremendous new possibilities in banking services.
 
 
 
Appendix 2
Move over Earnings, make way for Cash
Most investors use, if they ever use at all, the price-to-earnings ratio (P/E) to measure the value of a company. Even almost all investment bankers and analysts do the same. By dividing the market price by earnings, you can get an easy-to-understand measure of a firm's value and a simple way to compare different companies to each other.  Flip the ratio over, you get E/P, or what is termed earnings yield. This you can use to compare with the return of alternative investments such as bank interest rate.
But there are hell lots of problems with the “E”, the accounting earnings. As you all know, accountants are some of the most creative people on earth. This “E” can mean anything. The link below explains some of the problems with this “E”, and the associated P/E ratio.
What is Free Cash Flow Yield or Cash Yield?
Like interest rate, cash yield (CY) for investing in a stock is simply
CY = Free cash flow (FCF) / Price,
Price is the market capitalization (MC) of a company, P = share price * no. of shares outstanding
A CY of more than 5% investing in a stock is good as it is more than the return from the fixed deposit in banks, and it is in cash too. A CY of 10% and above would be excellent investment.
Free cash flow (FCF) is what is left from CFFO after spending capital expenses (Capex) for maintaining the ongoing business, or expenses for growth of the ordinary business such as building new or upgrading the production lines, open up more similar shops for business etc.
FCF = CFFO – Net Capex
FCF is whatever cash is left after all operating expenses, including capital expenses for growth, like buying new plant and machineries. FCF is like the end all goal of companies. The point is to do so well that you make so much money that even after all the checks written to expand the business you still have a lot of cash. With this FCF a company can pay out dividend consistently, buy back its shares when they are selling cheap, pare down loans, or invest in other profitable ventures, all done without assuming more debts, or issuing more shares
 
Based on CY, we could generally conclude that high CY companies, i.e. buying companies cheap in term of cash return, is a No-Brain Investment (NBI).
 
Source
 
Disclaimer: The article above does not represent a recommendation to buy or sell.
https://klse.i3investor.com/blogs/Amazinggrowth/197164.jsp
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