Cash flow – Church Of God Anonymous http://churchofgodanonymous.org/ Tue, 28 Jun 2022 03:53:18 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://churchofgodanonymous.org/wp-content/uploads/2021/06/icon-2021-06-25T213907.443.png Cash flow – Church Of God Anonymous http://churchofgodanonymous.org/ 32 32 Is Worley (ASX:WOR) using too much debt? https://churchofgodanonymous.org/is-worley-asxwor-using-too-much-debt/ Tue, 28 Jun 2022 03:10:12 +0000 https://churchofgodanonymous.org/is-worley-asxwor-using-too-much-debt/ Howard Marks said it well when he said that, rather than worrying about stock price volatility, “the possibility of permanent loss is the risk I worry about…and that every practical investor that I know is worried”. It’s natural to consider a company’s balance sheet when looking at its riskiness, as debt is often involved when […]]]>

Howard Marks said it well when he said that, rather than worrying about stock price volatility, “the possibility of permanent loss is the risk I worry about…and that every practical investor that I know is worried”. It’s natural to consider a company’s balance sheet when looking at its riskiness, as debt is often involved when a company fails. We can see that Worley Limited (ASX:WOR) uses debt in its business. But should shareholders worry about its use of debt?

What risk does debt carry?

Generally speaking, debt only becomes a real problem when a company cannot easily repay it, either by raising capital or with its own cash flow. An integral part of capitalism is the process of “creative destruction” where bankrupt companies are mercilessly liquidated by their bankers. However, a more common (but still costly) situation is when a company has to dilute shareholders at a cheap share price just to keep debt under control. Of course, debt can be an important tool in businesses, especially capital-intensive businesses. When we think about a company’s use of debt, we first look at cash and debt together.

See our latest analysis for Worley

What is Worley’s debt?

As you can see below, at the end of December 2021, Worley had A$1.95 billion in debt, up from A$1.71 billion a year ago. Click on the image for more details. However, he also had A$562.0 million in cash, so his net debt is A$1.38 billion.

ASX: Debt to Equity History June 28, 2022

How healthy is Worley’s balance sheet?

The latest balance sheet data shows Worley had liabilities of A$2.48 billion due within a year, and A$1.98 billion in liabilities falling due thereafter. On the other hand, it had cash of A$562.0 million and A$1.91 billion of receivables due within one year. It therefore has liabilities totaling A$1.99 billion more than its cash and short-term receivables, combined.

Worley has a market capitalization of A$7.37 billion, so it could very likely raise funds to improve its balance sheet, should the need arise. But we definitely want to keep our eyes peeled for indications that its debt is too risky.

We measure a company’s leverage against its earning power by looking at its net debt divided by its earnings before interest, taxes, depreciation and amortization (EBITDA) and calculating how easily its earnings before interest and taxes (EBIT ) covers its interest charge (interest coverage). The advantage of this approach is that we consider both the absolute amount of debt (with net debt to EBITDA) and the actual interest expense associated with that debt (with its interest coverage ratio ).

Worley’s debt is 2.5 times its EBITDA, and its EBIT covers its interest expense 6.7 times. This suggests that while debt levels are significant, we will refrain from labeling them as problematic. The bad news is that Worley has seen its EBIT drop 12% over the past year. If that kind of decline isn’t stopped, then managing his debt will be harder than selling broccoli-flavored ice cream for a bounty. There is no doubt that we learn the most about debt from the balance sheet. But ultimately, the company’s future profitability will decide whether Worley can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free analyst earnings forecast report interesting.

Finally, a company can only repay its debts with cash, not book profits. We therefore always check how much of this EBIT is converted into free cash flow. Fortunately for all shareholders, Worley has actually produced more free cash flow than EBIT over the past three years. This kind of high cash conversion gets us as excited as the crowd when the beat drops at a Daft Punk concert.

Our point of view

When it comes to the balance sheet, the most notable positive for Worley is the fact that he seems able to convert EBIT to free cash flow with confidence. But the other factors we noted above weren’t so encouraging. In particular, the EBIT growth rate gives us chills. Looking at all this data, we feel a little cautious about Worley’s debt levels. While debt has its upside in higher potential returns, we think shareholders should certainly consider how debt levels might make the stock more risky. There is no doubt that we learn the most about debt from the balance sheet. However, not all investment risks reside on the balance sheet, far from it. For example, we have identified 2 warning signs for Worley of which you should be aware.

If you are interested in investing in companies that can generate profits without the burden of debt, then check out this free list of growing companies that have net cash on the balance sheet.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Buyout of trucks in the United States: some light (NASDAQ: USAK) https://churchofgodanonymous.org/buyout-of-trucks-in-the-united-states-some-light-nasdaq-usak/ Sun, 26 Jun 2022 10:37:00 +0000 https://churchofgodanonymous.org/buyout-of-trucks-in-the-united-states-some-light-nasdaq-usak/ Justin Paget/DigitalVision via Getty Images June 24, 2022 turned out to be a remarkable day for the shareholders of American truck (NASDAQ: USAK). In response to news that the company had agreed to sell itself to another buyer, shares of the entity soared 112.6%. This price spike brings the company to a level that more […]]]>

Justin Paget/DigitalVision via Getty Images

June 24, 2022 turned out to be a remarkable day for the shareholders of American truck (NASDAQ: USAK). In response to news that the company had agreed to sell itself to another buyer, shares of the entity soared 112.6%. This price spike brings the company to a level that more or less matches what many of its competitors are trading. But on an absolute basis, stocks still look pretty cheap. Overall, investors should view this as a slightly disappointing result, even if they capture a significant upside in a short period of time.

A great little company got snapped up

In September of last year, I wrote my first USA Truck article. In this article, I mentioned management’s high expectations of the company and the low price at which the shares were trading. By low price, I don’t just mean the nominal price. I mean the multiple at which the company was trading relative to its cash flow. On top of that, I also commended the company’s historic financial performance, especially its revenue growth and its robust and generally growing cash flow. In the end, I ended up calling the company a “buy,” which underscores my belief that the company would likely generate a significantly higher return than the broader market would over an extended period. Since the publication of this article, USA Truck has significantly exceeded even my own expectations. Even though the S&P 500 is down 17%, the company’s shares were up 0.4% before the move was announced. Now they are up 109.6% compared to the 13.7% decline seen by the broader market.

The vast majority of this increase is the result of the aforementioned acquisition. According to a press release issued by management, the company has agreed to sell itself to logistics giant DB Schenker in an all-cash deal valuing the company at $31.72 per share. This translates to a company equity market value of approximately $285.7 million and an enterprise value of $435 million. While this represents a significant premium to the company’s previous share price, investors would be right to question whether the terms of the deal make sense to them. Also, the question of additional upside potential by the closing date is certainly reasonable. To answer the first question, we first need to dig deeper into the historical financial performance of the company.

Historical financial data

Author – SEC EDGAR Data

When I last wrote about the company, we only had data covering the first half of the company’s 2021 fiscal year. Now we know how 2021 worked. We also have data covering the first quarter of the company’s fiscal year 2022. For all of 2021, revenue was $710.4 million. This represents an increase of 28.9% from the $551.1 million generated in 2020. A significant contributor to this increase in sales was the trucking segment, which saw revenues climb 14.8% from from $384.3 million in 2020 to $441.1 million last year. Even though the total number of kilometers driven by the company decreased by 7.9%, the basic income per loaded kilometer increased by 20.7% and the basic income per tractor available per week jumped by 18.4 %. Even more impressive was the performance of the USAT Logistics segment, which saw its revenues increase by 68.5%, from $192 million to $323.4 million in a single year. This is partly explained by a 17.5% increase in the number of loads. However, the main contributor was a 43.4% increase in revenue per load. Supply chain constraints have clearly proven beneficial to shareholders lately.

As revenues increased, profitability also increased. Net income of $24.8 million eclipsed the $4.7 million generated in 2020. Cash flow from operations fell from $31.2 million to $37.6 million. But if we adjust for changes in working capital, it would have gone from $49.1 million to $60.2 million. Meanwhile, the company’s EBITDA also improved, from $55.7 million in 2020 to $74.8 million in 2021. While these increases may seem out of proportion to the rise in income, this should come as no surprise to investors accustomed to buying into asset-intensive companies in low-margin sectors. Even a small improvement in price or volume can have a significant impact on a company’s bottom line.

Historical financial data

Author – SEC EDGAR Data

The strong financial performance continued in fiscal 2022. In the first quarter, the company’s revenue was $201.1 million. This translates to a 26.9% increase from the $158.5 million generated in the same quarter a year earlier. Both segments saw year-over-year sales growth, but by far the best performing segment was USAT Logistics, with revenue up 52.6% from $55.7 million to $85 million. The number of loads for this segment decreased by 24.8%, while revenue per load increased by 14.2%. Naturally, profitability followed. Net income fell from $3.6 million in the first quarter of 2021 to $13.1 million in the same period this year. Operating cash flow more than doubled from $6 million to $13.8 million. However, if we adjust for changes in working capital, the increase would have been smaller, with the metric dropping from $12.2 million to $15 million. And finally, the company’s EBITDA went from $15.7 million to $27.4 million.

Historical financial data

Author – SEC EDGAR Data

We don’t know what the rest of fiscal year 2022 will look like for USA Truck, but if we annualize the results seen so far this year, we should expect operating cash flow of $74 million on a adjusted and EBITDA of $130.5 million. Using this data, we can easily assess the company. On a forward-looking basis, the price to adjusted operating cash flow multiple is 3.9. This compares to the 4.7 reading we get if we rely on 2021 results. Meanwhile, the EV/EBITDA multiple is expected to reach 3.3, which is a significant improvement over the reading 5.8 which we get using 2021 numbers. Of course, some investors may think we are being overly optimistic in assuming that current market conditions will continue in perpetuity. This is a perfectly fair point. But even if financial performance returns to what we saw in 2020, those multiples are incredibly low at 5.8 and 7.8, respectively. Shares of the company are also cheap compared to other players. Compared to five other similar companies, I found that the companies traded at a price/operating cash flow multiple between 1.8 and 8.5. In this case, three of the five companies are currently cheaper than USA Truck. Using the EV to EBITDA approach, the range was 2.5 to 5.9. In this scenario, four out of five companies are cheaper than our prospect.

Company Price / Operating Cash EV / EBITDA
American truck 4.7 5.8
Ryder(R) System 1.8 3.6
Daseke (DSKE) 3.0 4.0
TFI International (TFII) 8.5 5.9
Pact Logistics Group (CVLG) 3.7 2.5
PAM Transportation Services (PTSI) 5.2 4.0

Carry

At first glance, this takeover seems incredibly attractive to investors. This is especially true when you consider USA Truck’s stock price relative to similar players. At the same time, however, equities are still cheap in absolute terms, even if financial performance returns to what it was in previous years. Given the company’s current stock price relative to the quoted redemption price, there’s an additional upside of around 2.3% to be had. For investors who like merger arbitrage opportunities, this could be worth taking, especially if it can be done with leverage and investors are anticipating further decline for the broader market. For this reason, I would still consider the company a soft ‘buy’, but in the absence of anything meaningful, all the easy money was made.

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Atlas: excellent forecast for 2022 and favorable estimates (NYSE: ATCO) https://churchofgodanonymous.org/atlas-excellent-forecast-for-2022-and-favorable-estimates-nyse-atco/ Fri, 24 Jun 2022 17:07:00 +0000 https://churchofgodanonymous.org/atlas-excellent-forecast-for-2022-and-favorable-estimates-nyse-atco/ alfexe/iStock via Getty Images Atlas Corp. (NYSE: ATCO) recorded sales growth of more than 9% in the first quarter of 2022 and continues to report more and more ships. If shipping market trends continue to benefit the company and ATCO negotiates successfully with lending institutions, free cash flows will likely be northerly. In my opinion, […]]]>

alfexe/iStock via Getty Images

Atlas Corp. (NYSE: ATCO) recorded sales growth of more than 9% in the first quarter of 2022 and continues to report more and more ships. If shipping market trends continue to benefit the company and ATCO negotiates successfully with lending institutions, free cash flows will likely be northerly. In my opinion, if regulators don’t destroy ATCO’s free cash flow margins and covenants don’t infringe on the freedom of the company, the stock price could reach higher levels. Even considering the risks, I think ATCO’s research is a great idea for non-conservative investors.

Atlas Corp.

Atlas Corp. invests in long-term risk-adjusted returns in infrastructure assets in the maritime sector and the energy sector. The company’s most relevant interests are in Seaspan Corporation, the world’s largest container lessor, and APR Energy, a mobile power solutions lessor.

Investor Presentation May 2022

Investor Presentation May 2022

Given Atlas’ different business models, the company’s core business appears to be container ship leasing. During the three months ended March 31, 2022, more than 94% of the total amount of revenue was related to the rental of container ships.

Q1 2022 results

Q1 2022 results

After the last quarterly release, Atlas turns out to be an interesting piece. The company recorded sales growth of 9.5% q/q and a significant increase in adjusted EBITDA. With more ships than in the first quarter of 2021, I think we could expect more free cash flow in 2022 than in 2021.

Investor Presentation May 2022

Investor Presentation May 2022

The advice given in the last presentation is also beneficial. In total, Atlas Corp. expects to generate nearly $1.1 billion in revenue in 2022, including APR revenue and Seaspan revenue:

Investor Presentation May 2022

Investor Presentation May 2022

Estimates include double-digit sales growth in 2023 and 2024

I consulted other analysts’ reports before running my financial models. Estimates issued by other analysts include sales growth between 2% and 20% from 2022 to 2024 as well as an EBITDA margin of 67% to 70%.

marketscreener.com

marketscreener.com

Investment analysts are also expected to almost double the total amount of net income in 2022 compared to 2021. In my opinion, only investors who take the time to assess future income will make a profit on the business.

marketscreener.com

marketscreener.com

Balance sheet

As of March 31, 2022, Atlas Corp. reports $251 million in cash, $10 billion in total assets, and $6 billion in total liabilities. The financial situation seems stable, but a few words must be said about the total amount of debt.

Q1 2022 results

Q1 2022 results

As of March 31, 2022, Atlas Corp. reports long-term debt worth $3.59 billion and net debt of nearly $5.3 billion. I believe the leverage is not low. In my view, future revenue growth will likely help management reduce the total amount of debt. With this, investors, who do not appreciate a large financial risk, and a lot of financial obligations can pass on this name.

Q1 2022 results

Q1 2022 results

Investor Presentation May 2022

Investor Presentation May 2022

Under advantageous conditions in the shipping market, I obtained a valuation of $18 per share

In my base case scenario, I assumed that shipping and energy market trends would continue to benefit Atlas Corp. Also, more customers could know more about the accumulated know-how of Atlas Corp. .

Also, I assumed that Atlas Corp. will be able to borrow funds on acceptable credit terms. As a result, the company will be able to fund capital expenditures and other general business activities. Finally, changes in government rules or the effect of government regulations on Atlas’ business are unlikely to affect operations.

Experts estimate that the global container rental market is expected to grow at a CAGR of 6.1%. In this scenario, I assumed that sales growth will be a little lower than market growth. I included a sales growth of about 4% from 2025 to 2030.

In 2019, the global container leasing market size was USD 6032.9 million and is projected to reach USD 9173.3 million by the end of 2026, growing at a CAGR of 6.1% during the year. period 2021-2026. Source: Digital Journal

In this scenario, I considered sales growth reported by other analysts from 2022 to 2024. Additionally, I used an EBITDA margin of 67%, which I have seen in the past. In fact, he is conservative. My results include 2030 operating profit close to $1 billion and 2030 EBITDA of $1.51 billion.

Arie Investment Management

Arie Investment Management

Now, with conservative changes to working capital, D&A, and investment/sales of 51%, free cash flow in 2030 would be $279 million.

Arie Investment Management

Arie Investment Management

In my CAPM model, I used a discount of 6.3%, with a beta close to 1.68 and a cost of equity of 10% to 14%. Other investment analysts have used similar assumptions. In total, with an EV/EBITDA multiple of 9.4x, the implied fair price would be close to $18, and the internal rate of return could be between 7% and 8%:

Arie Investment Management

Arie Investment Management

worst case scenario

Atlas Corp. has signed several contractual agreements, which may limit the options available for management. This means the company may not be able to commit to aggressive acquisitions or new financing deals. Accordingly, Atlas Corp. may generate less revenue than expected. The company explained some of these covenants in the annual report:

To borrow funds under our existing credit facilities and vessel leasing and other financing arrangements, we must, among other things, comply with specific financial covenants. For example, we are prohibited under certain of our existing credit facilities, vessel leases and other financing agreements from incurring aggregate borrowings in excess of 65.0% of our total assets (as defined in the applicable agreement), and we must also ensure that certain interest coverage and interest and principal coverage ratios are met. Source: 20-E

Atlas Corp. made great efforts to increase the number of customers. In the last investor presentation, Atlas offered significant customer diversification. With that, in the last annual report, the company listed a significant number of risks stemming from customer concentration. In this scenario, I assumed that Atlas Corp. could lose one or two customers, which could lead to a significant drop in revenue growth:

Investor Presentation May 2022

Investor Presentation May 2022

We derive our charter revenue from a limited number of customers, and the loss of a customer or the long-term charters we have with them, further increases in the number of short-term charter vessels or any significant decrease in payments under our contracts with customers could materially adversely affect our business, results of operations and financial condition. Source: 20-E

As part of the growth strategies reported by Atlas, there is inorganic growth. I am not optimistic in this regard. In my opinion, even if management finds targets, they will most likely be small because Atlas Corp. does not have a large amount of cash and the leverage is not low:

Investor Presentation May 2022

Investor Presentation May 2022

We expect acquisitions of new assets and businesses to be an important part of our growth strategy. If we are unable to identify suitable acquisition candidates or successfully integrate the businesses or assets we acquire, our growth strategy could fail. Source: 20-E

In a hypothetical pessimistic scenario, I used -35% sales growth in 2025 and 2.5% sales growth from 2026 to 2030. Additionally, with a decline in EBITDA margin from 2025 to 2028, I got a 2030 EBITDA of about $1.31 billion.

Arie Investment Management

Arie Investment Management

I used a discount of 6.75% and an exit multiple of 8.5x, which implied a price of $5 and an IRR of -6%.

Arie Investment Management

Arie Investment Management

My best-case scenario with enough M&A deals involved a $37 valuation

My best case scenario includes approximately the same trading conditions as reported in my base case scenario. However, I also assumed that management would be able to acquire many other competitors, which will likely improve future revenue and free cash flow growth. Keep in mind that sales growth will outpace that of the target market. This scenario is a bit unlikely. He assumes that Atlas will present some small acquisitions, which could be so beneficial that creditors could help management with more financing. In my opinion, the case is a bit extraordinary because the total amount of leverage is not small.

Atlas Corp. disclosed in its annual report that it was seeking to acquire other competitors. With that in mind, not designing a case scenario where management acquires other peers would be a bit unfair:

We intend to seek acquisition opportunities both to expand into new business areas and to strengthen our position in our existing business areas. This may involve acquiring new businesses, assets to contribute to our existing business lines, including new or used vessels and power generation assets, or both. Source: 20-E

In this case, from 2025 to 2030, I assumed sales growth of around 7.5% to 5%, an EBITDA margin close to 70% and an operating margin of 45%. The results include a 2030 operating profit of $1 billion.

Arie Investment Management

Arie Investment Management

With a discount of 5% and an optimistic exit multiple of 12.5x, the implied price would equal $37, and the IRR would be close to 30%.

Arie Investment Management

Arie Investment Management

Conclusion

Atlas Corp. recorded sales growth of more than 9% in the first quarter of 2022, and many investment analysts expect double-digit sales growth in 2023 and 2024. In my opinion, if the market trends of the shipping and energy continue to hold up and as Atlas continues to increase its ships, free cash flow will likely shift north. At best, I think the company could fetch a fair price of over $30. Even given the risks of existing deals and the total amount of debt, in my view, Atlas will likely be appreciated by non-conservative investors.

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We’re not worried about MPH Health Care’s cash burn (FRA: 93M1) https://churchofgodanonymous.org/were-not-worried-about-mph-health-cares-cash-burn-fra-93m1/ Sun, 19 Jun 2022 06:52:41 +0000 https://churchofgodanonymous.org/were-not-worried-about-mph-health-cares-cash-burn-fra-93m1/ There is no doubt that it is possible to make money by owning shares of unprofitable companies. For example, although software-as-a-service company Salesforce.com lost money for years as it grew recurring revenue, if you had held stock since 2005, you would have done very well. However, only a fool would ignore the risk of a […]]]>

There is no doubt that it is possible to make money by owning shares of unprofitable companies. For example, although software-as-a-service company Salesforce.com lost money for years as it grew recurring revenue, if you had held stock since 2005, you would have done very well. However, only a fool would ignore the risk of a loss-making company burning through its cash too quickly.

So should MPH Healthcare (ENG:93M1) are shareholders concerned about its consumption of cash? For the purposes of this article, we will define cash burn as the amount of money the business spends each year to fund its growth (also known as negative free cash flow). First, we will determine its cash trail by comparing its cash consumption with its cash reserves.

Check out our latest analysis for MPH Health Care

How long does the MPH Health Care cash trail last?

You can calculate a company’s cash trail by dividing the amount of cash it has on hand by the rate at which it spends that money. When MPH Health Care last published its balance sheet in December 2021, it had no debt and cash worth €4.4 million. Last year, its cash burn was 1.1 million euros. That means it had a cash trail of around 4.1 years in December 2021. Importantly, the only analyst we see covering the stock thinks MPH Health Care will break even before then. In this case, he may never reach the end of his cash trail. You can see how his cash balance has changed over time in the image below.

DB:93M1 Debt to Equity June 19, 2022

How is MPH Health Care’s cash burn changing over time?

Although MPH Health Care has recorded statutory a turnover of 14 million euros in the last year, it did not generate any income operations. This means that we consider this to be a pre-revenue business, and will focus our analysis of growth on cash burn, for now. Notably, its cash burn has actually fallen by 62% over the past year, which is a real plus in terms of resilience, but uninspiring in terms of investing for growth. Obviously, however, the crucial factor is whether the company will expand its business in the future. For this reason, it makes a lot of sense to take a look at our analysts’ forecasts for the company.

How difficult would it be for MPH Health Care to raise more money for growth?

There’s no doubt that MPH Health Care’s rapid reduction in cash burn brings comfort, but even if it’s only hypothetical, it’s still worth wondering how easily it could raise more cash. money to fund future growth. In general, a listed company can raise new funds by issuing shares or by going into debt. Typically, a company will sell new stock on its own to raise cash and drive growth. By looking at a company’s cash burn relative to its market capitalization, we gain insight into how much of a shareholder base would be diluted if the company needed to raise enough cash to cover a company’s cash burn. another year.

MPH Health Care has a market cap of €76m and burned €1.1m last year, or 1.4% of the company’s market value. This means it could easily issue a few shares to fund more growth and may well be able to borrow cheaply.

How risky is MPH Health Care’s cash burn situation?

It may already be obvious to you that we are relatively comfortable with how MPH Health Care spends its money. In particular, we think its cash trail stands out as proof that the company is on top of spending. And even his reduction in cash burn was very encouraging. It is clearly very positive to see that at least one analyst predicts that the company will soon break even. After considering the various metrics mentioned in this report, we are quite comfortable with how the company is spending its money, as it appears to be on track to meet its medium-term needs. Readers should have a good understanding of business risks before investing in any stock, and we have spotted 2 warning signs for MPH Health Care potential shareholders should consider before investing in a stock.

Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies, and this list of growth stocks (according to analyst forecasts)

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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These 4 measures indicate that Stabilus (ETR:STM) is using debt safely https://churchofgodanonymous.org/these-4-measures-indicate-that-stabilus-etrstm-is-using-debt-safely/ Tue, 14 Jun 2022 07:31:15 +0000 https://churchofgodanonymous.org/these-4-measures-indicate-that-stabilus-etrstm-is-using-debt-safely/ Legendary fund manager Li Lu (whom Charlie Munger once backed) once said, “The greatest risk in investing is not price volatility, but whether you will suffer a permanent loss of capital. So it may be obvious that you need to take debt into account when thinking about the risk of a given stock, because too […]]]>

Legendary fund manager Li Lu (whom Charlie Munger once backed) once said, “The greatest risk in investing is not price volatility, but whether you will suffer a permanent loss of capital. So it may be obvious that you need to take debt into account when thinking about the risk of a given stock, because too much debt can sink a business. We note that Stabilus SA (ETR:STM) has debt on its balance sheet. But the real question is whether this debt makes the business risky.

Why is debt risky?

Debt helps a business until the business struggles to pay it back, either with new capital or with free cash flow. An integral part of capitalism is the process of “creative destruction” where bankrupt companies are mercilessly liquidated by their bankers. However, a more common (but still painful) scenario is that it has to raise new equity at a low price, thereby permanently diluting shareholders. Of course, many companies use debt to finance their growth, without any negative consequences. The first step when considering a company’s debt levels is to consider its cash and debt together.

See our latest analysis for Stabilus

What is Stabilus’ net debt?

The graph below, which you can click on for more details, shows that Stabilus had €348.2 million in debt in March 2022; about the same as the previous year. However, because it has a cash reserve of €203.8 million, its net debt is lower, at approximately €144.4 million.

XTRA:STM Debt/Equity History June 14, 2022

How strong is Stabilus’ balance sheet?

According to the last published balance sheet, Stabilus had liabilities of €204.6 million maturing within 12 months and liabilities of €476.8 million maturing beyond 12 months. On the other hand, it had €203.8 million in cash and €179.0 million in receivables at less than one year. It therefore has liabilities totaling €298.6 million more than its cash and short-term receivables, combined.

This shortfall is not that bad as Stabilus is worth 1.27 billion euros and therefore could probably raise enough capital to shore up its balance sheet, should the need arise. However, it is always worth taking a close look at its ability to repay debt.

In order to assess a company’s debt relative to its earnings, we calculate its net debt divided by its earnings before interest, taxes, depreciation and amortization (EBITDA) and its earnings before interest and taxes (EBIT) divided by its expenses. interest (its interest coverage). The advantage of this approach is that we consider both the absolute amount of debt (with net debt to EBITDA) and the actual interest expense associated with that debt (with its interest coverage ratio ).

Stabilus’ net debt is only 0.88 times its EBITDA. And its EBIT easily covers its interest charges, which is 12.7 times the size. So we’re pretty relaxed about his super-conservative use of debt. On top of that, Stabilus has grown its EBIT by 33% over the last twelve months, and this growth will make it easier to manage its debt. The balance sheet is clearly the area to focus on when analyzing debt. But it is future earnings, more than anything, that will determine Stabilus’ ability to maintain a healthy balance sheet in the future. So if you are focused on the future, you can check out this free report showing analyst earnings forecast.

But our last consideration is also important, because a company cannot pay off its debts with paper profits; he needs cash. We must therefore clearly examine whether this EBIT generates a corresponding free cash flow. Over the past three years, Stabilus has recorded free cash flow of 73% of its EBIT, which is about normal, given that free cash flow excludes interest and taxes. This cold hard cash allows him to reduce his debt whenever he wants.

Our point of view

Fortunately, Stabilus’ impressive interest coverage means it has the upper hand on its debt. And the good news does not stop there, since its EBIT growth rate also confirms this impression! Overall, we think Stabilus’ use of debt seems entirely reasonable and we’re not worried about that. After all, reasonable leverage can increase return on equity. When analyzing debt levels, the balance sheet is the obvious starting point. However, not all investment risks reside on the balance sheet, far from it. Example: we have identified 1 warning sign for Stabilus you should be aware.

If, after all that, you’re more interested in a fast-growing company with a strong balance sheet, check out our list of cash-neutral growth stocks right away.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Alkami Technology, Inc. Intrinsic Value Calculation (NASDAQ:ALKT) https://churchofgodanonymous.org/alkami-technology-inc-intrinsic-value-calculation-nasdaqalkt/ Sun, 12 Jun 2022 14:15:48 +0000 https://churchofgodanonymous.org/alkami-technology-inc-intrinsic-value-calculation-nasdaqalkt/ In this article, we will estimate the intrinsic value of Alkami Technology, Inc. (NASDAQ:ALKT) by estimating the company’s future cash flows and discounting them to their present value. On this occasion, we will use the Discounted Cash Flow (DCF) model. Believe it or not, it’s not too hard to follow, as you’ll see in our […]]]>

In this article, we will estimate the intrinsic value of Alkami Technology, Inc. (NASDAQ:ALKT) by estimating the company’s future cash flows and discounting them to their present value. On this occasion, we will use the Discounted Cash Flow (DCF) model. Believe it or not, it’s not too hard to follow, as you’ll see in our example!

We draw your attention to the fact that there are many ways to value a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. For those who are passionate about stock analysis, the Simply Wall St analysis template here may interest you.

Discover our latest analysis for Alkami Technology

crush numbers

We will use a two-stage DCF model which, as the name suggests, takes into account two stages of growth. The first stage is usually a period of higher growth which stabilizes towards the terminal value, captured in the second period of “sustained growth”. To begin with, we need to obtain cash flow estimates for the next ten years. Wherever possible, we use analysts’ estimates, but where these are not available, we extrapolate the previous free cash flow (FCF) from the latest estimate or reported value. We assume that companies with decreasing free cash flow will slow their rate of contraction and companies with increasing free cash flow will see their growth rate slow during this period. We do this to reflect the fact that growth tends to slow more in early years than in later years.

A DCF is based on the idea that a dollar in the future is worth less than a dollar today, and so the sum of these future cash flows is then discounted to today’s value:

Estimated free cash flow (FCF) over 10 years

2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Leveraged FCF ($, millions) -29.0m USD -$6.20 million $13.1 million $21.3 million $30.7 million $40.4 million $49.6 million $57.8 million $64.8 million $70.6 million
Growth rate estimate Source Analyst x1 Analyst x2 Analyst x1 Is at 62.58% Is at 44.38% Is at 31.65% East @ 22.73% Is at 16.49% Is at 12.12% Is at 9.06%
Present value (millions of dollars) discounted at 6.2% -$27.3 -US$5.5 $10.9 $16.7 $22.7 $28.1 $32.5 $35.6 $37.6 $38.6

(“East” = FCF growth rate estimated by Simply Wall St)
10-year discounted cash flow (PVCF) = $189 million

After calculating the present value of future cash flows over the initial 10-year period, we need to calculate the terminal value, which takes into account all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate the terminal value at a future annual growth rate equal to the 5-year average 10-year government bond yield of 1.9%. We discount terminal cash flows to present value at a cost of equity of 6.2%.

Terminal value (TV)= FCF2031 × (1 + g) ÷ (r – g) = $71 million × (1 + 1.9%) ÷ (6.2%–1.9%) = $1.7 billion

Present value of terminal value (PVTV)= TV / (1 + r)ten= US$1.7B÷ ( 1 + 6.2%)ten= $911 million

The total value is the sum of the cash flows for the next ten years plus the present terminal value, which gives the total equity value, which in this case is $1.1 billion. To get the intrinsic value per share, we divide it by the total number of shares outstanding. Compared to the current share price of US$12.9, the company appears around fair value at the time of writing. Remember though that this is only a rough estimate, and like any complex formula – trash in, trash out.

NasdaqGS: ALKT Discounted Cash Flow June 12, 2022

Important assumptions

Now, the most important inputs to a discounted cash flow are the discount rate and, of course, the actual cash flows. You don’t have to agree with these entries, I recommend that you redo the calculations yourself and play around with them. The DCF also does not take into account the possible cyclicality of an industry or the future capital needs of a company, so it does not give a complete picture of a company’s potential performance. Since we consider Alkami Technology as a potential shareholder, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which takes debt into account. In this calculation, we used 6.2%, which is based on a leveraged beta of 1.018. Beta is a measure of a stock’s volatility relative to the market as a whole. We derive our beta from the average industry beta of broadly comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable company.

Let’s move on :

While important, the DCF calculation will ideally not be the only piece of analysis you look at for a business. DCF models are not the be-all and end-all of investment valuation. Rather, it should be seen as a guide to “what assumptions must be true for this stock to be under/overvalued?” For example, changes in the company’s cost of equity or in the risk-free rate can have a significant impact on the valuation. For Alkami Technology, we have put together three important things that you should consider in more detail:

  1. Risks: Take risks, for example – Alkami Technology has 3 warning signs we think you should know.
  2. Future earnings: How does ALKT’s growth rate compare to its peers and the market in general? Dive deeper into the analyst consensus figure for the coming years by interacting with our free analyst growth forecast chart.
  3. Other strong companies: Low debt, high returns on equity and good past performance are essential to a strong business. Why not explore our interactive list of stocks with strong trading fundamentals to see if there are any other companies you may not have considered!

PS. The Simply Wall St app performs a daily updated cash flow assessment for each NASDAQGS stock. If you want to find the calculation for other stocks, search here.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Don’t buy Financial Street Property Co., Limited (HKG:1502) for its upcoming dividend without doing these checks https://churchofgodanonymous.org/dont-buy-financial-street-property-co-limited-hkg1502-for-its-upcoming-dividend-without-doing-these-checks/ Fri, 10 Jun 2022 22:50:46 +0000 https://churchofgodanonymous.org/dont-buy-financial-street-property-co-limited-hkg1502-for-its-upcoming-dividend-without-doing-these-checks/ Regular readers will know we love our dividends at Simply Wall St, which is why it’s exciting to see Financial Street Property Co., Limited (HKG:1502) is set to trade ex-dividend in the next 2 days. The ex-dividend date occurs one day before the record date which is the day shareholders must be on the books […]]]>

Regular readers will know we love our dividends at Simply Wall St, which is why it’s exciting to see Financial Street Property Co., Limited (HKG:1502) is set to trade ex-dividend in the next 2 days. The ex-dividend date occurs one day before the record date which is the day shareholders must be on the books of the company to receive a dividend. The ex-dividend date is an important date to know because any purchase of shares made on or after this date may mean late settlement that does not appear on the record date. This means you will need to buy the shares of Financial Street Property by June 13 to receive the dividend, which will be paid on August 8.

The company’s next dividend payment will be CN¥0.22 per share. Last year, in total, the company distributed CN¥0.22 to shareholders. Calculating the value of last year’s payouts shows that Financial Street Property has an 8.8% yield on the current share price of HK$2.95. We love to see companies pay out a dividend, but it’s also important to make sure that laying the golden eggs doesn’t kill our golden hen! We need to see if the dividend is covered by earnings and if it increases.

Check out our latest analysis for Financial Street Property

Dividends are usually paid out of company profits. If a company pays out more dividends than it earns in profits, then the dividend could be unsustainable. Financial Street Property pays an acceptable 60% of its profits, a common payout level for most companies. Still, cash flow is even more important than earnings in evaluating a dividend, so we need to see if the company has generated enough cash to pay its distribution. Over the past year, it has paid out 60% of its free cash flow as dividends, within the usual range for most companies.

It is positive to see that the Financial Street Property dividend is covered by both earnings and cash flow, as this is generally a sign that the dividend is sustainable, and a lower payout ratio generally suggests greater margin of safety before the dividend is cut.

Click here to see how much of its profits Financial Street Property has paid out over the past 12 months.

SEHK: 1502 Historic dividend June 10, 2022

Have earnings and dividends increased?

Companies that aren’t growing profits can still be valuable, but it’s even more important to assess the sustainability of the dividend if it looks like the company will struggle to grow. If earnings fall enough, the company could be forced to cut its dividend. With that in mind, we’re not thrilled to see that Financial Street Property’s earnings per share have effectively held steady over the past five years. It’s better than seeing them fall, sure, but over the long term, all the best dividend-paying stocks have the potential to significantly increase their earnings per share.

We also note that Financial Street Property has issued a significant number of new shares over the past year. Trying to increase the dividend while issuing large amounts of new stock reminds us of the ancient Greek story of Sisyphus – perpetually pushing a rock upwards.

Given that Financial Street Property has only been paying a dividend for a year, there aren’t many past stories to draw from.

Last takeaway

From a dividend perspective, should investors buy or avoid Financial Street Property? Although earnings per share are stable, at least Financial Street Property has not pledged to pay an unsustainable dividend, with its earnings and cash payout ratios being within reasonable limits. Overall, it doesn’t seem like the most suitable dividend-paying stock for a long-term investor.

With that in mind, if you don’t mind Financial Street Property’s low dividend characteristics, it’s worth keeping in mind the risks associated with this business. Our analysis shows 1 warning sign for Financial Street Property and you should be aware of this before buying stocks.

As a general rule, we don’t recommend simply buying the first dividend-paying stock you see. Here is a curated list of attractive stocks that are strong dividend payers.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Best time to finance before retirement – Aviation Finance https://churchofgodanonymous.org/best-time-to-finance-before-retirement-aviation-finance/ Wed, 08 Jun 2022 13:53:09 +0000 https://churchofgodanonymous.org/best-time-to-finance-before-retirement-aviation-finance/ If the goal is to present the best possible scenario of yourself to a lender, the answer is always ‘before’. Since most aircraft loans are based on cash flow (as opposed to “income”), the lender must see sufficient cash flow to pay all debts plus aircraft debt while leaving approximately 60% remaining to cover your […]]]>

If the goal is to present the best possible scenario of yourself to a lender, the answer is always ‘before’. Since most aircraft loans are based on cash flow (as opposed to “income”), the lender must see sufficient cash flow to pay all debts plus aircraft debt while leaving approximately 60% remaining to cover your cost of living.

Consistency is key for aircraft lenders, and they typically seek to ensure that cash flow is consistent year over year. When you transition from full-time employment to retirement, the income stream will generally be different. Whether it’s pension payments, IRA/401K retirement distributions, Social Security, and more. – lenders must be able to determine that the cash flow will be sufficient to cover all your bills, plus an aircraft loan and maintenance expenses. Some lenders may be willing to “project retirement income” via statements for 401K and IRA accounts, others may require up to 2 years 1099 and personal tax returns to assess what that looks like.

Generally speaking, it is best to seek aircraft financing while you are still employed full-time and to seek to complete the purchase of the aircraft before your official retirement date. This will make the process easier as underwriting will be based on the previous 2 years and current income versus needing to project retirement income or wait 2 full years of tax returns after retirement.

That’s not to say retirees can’t get funding. The point to remember is that with the more restricted cash flows a retiree enjoys, usually in the form of interest and/or dividends, residual income from the business or businesses in which the retiree may have an interest, or other retirement or retirement savings accounts, a lender must feel comfortable that the prospect will meet the aforementioned criteria. Some lenders may also make exceptions assuming that a conservative percentage of marketable securities could be used to service the debt. Again, most lenders look at actual cash flow to determine repayment capacity. Therefore, the options may be limited if you have income (or your investments grow), but you do not distribute the earnings as cash flow.

Very good advice. Excellent rates. Helpful and responsive representatives you can trust. Three good reasons to turn to AOPA Aviation Finance when purchasing or refinancing an aircraft. If you need a reliable source of financing with people who are on your side, just call 800.62.PLANE (800.627.5263) or click here to request a quote.

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IOCs reported increased cash flow and higher proved reserves in 2021 despite headwinds https://churchofgodanonymous.org/iocs-reported-increased-cash-flow-and-higher-proved-reserves-in-2021-despite-headwinds/ Mon, 06 Jun 2022 23:21:29 +0000 https://churchofgodanonymous.org/iocs-reported-increased-cash-flow-and-higher-proved-reserves-in-2021-despite-headwinds/ Emmanuel Addeh Despite the decline in oil and gas investment, the annual financial reports of 119 publicly traded exploration and production companies revealed that their aggregate proven reserves of crude oil and natural gas increased by $19.2 billion. barrels of oil equivalent (boe) in 2021. Collective exploration and development (E&D) spending by companies rose just […]]]>

Emmanuel Addeh

Despite the decline in oil and gas investment, the annual financial reports of 119 publicly traded exploration and production companies revealed that their aggregate proven reserves of crude oil and natural gas increased by $19.2 billion. barrels of oil equivalent (boe) in 2021.

Collective exploration and development (E&D) spending by companies rose just 1% in 2021 compared to 2020, remaining 28% below its five-year average (2015-2019), according to a report by the Energy Information Agency (EIA).

Many publicly traded oil and gas companies, generating more cash from operations due to higher prices in 2021, have devoted more of their financial resources to reducing debt, increasing dividends, merger and acquisition opportunities than capital expenditure for production growth.

The analysis was based on published financial reports of 119 domestic and international companies provided to the United States Securities and Exchange Commission, collected by Evaluate Energy and published by the EIA.

“We estimate that the 119 companies in this analysis accounted for approximately 60% of total non-OPEC liquids production in 2021.

“Of the 119 companies whose financial reports were reviewed, the top 20 held 78% of the collective 293 billion boe of proven oil and natural gas reserves held at the end of 2021.

“While many of these companies have global operations, some are national oil companies with reserves and operations concentrated in their home countries,” he said.

According to the report, organic additions to proven reserves of crude oil and natural gas come from enhanced recovery and expansions and discoveries that can be tied to E&D spending.

Global E&D costs incurred and acquisitions of unproved reserves by these companies in 2021 rose 1% year-on-year to $244 billion, he said.

With less capital expenditure going to E&D, the publicly traded companies the organization looked at devoted more cash from operations to financing activities such as debt reduction and dividends.

“Collectively, their operating cash grew to $597 billion in 2021, the most since 2014. With higher revenues, companies focused on paying down debt and increasing dividends, likely to improve their financial situation and increase returns for shareholders.

“Net debt held by companies fell by $134 billion, the highest amount of any year from 2012 to 2021, and dividends increased to $107 billion (24% above the average of 2015-2019),” the report reads.

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Estimated fair value of Jahez International Company for Information Systems Technology (TADAWUL:9526) https://churchofgodanonymous.org/estimated-fair-value-of-jahez-international-company-for-information-systems-technology-tadawul9526/ Sun, 05 Jun 2022 07:22:12 +0000 https://churchofgodanonymous.org/estimated-fair-value-of-jahez-international-company-for-information-systems-technology-tadawul9526/ What is the distance between Jahez International Company for Information Systems Technology (TADAWUL:9526) and its intrinsic value? Using the most recent financial data, we will examine whether the stock price is fair by projecting its future cash flows and then discounting them to the present value. One way to do this is to use the […]]]>

What is the distance between Jahez International Company for Information Systems Technology (TADAWUL:9526) and its intrinsic value? Using the most recent financial data, we will examine whether the stock price is fair by projecting its future cash flows and then discounting them to the present value. One way to do this is to use the discounted cash flow (DCF) model. Believe it or not, it’s not too hard to follow, as you’ll see in our example!

We generally believe that the value of a company is the present value of all the cash it will generate in the future. However, a DCF is just one of many evaluation metrics, and it is not without its flaws. If you want to know more about discounted cash flow, the rationale for this calculation can be read in detail in the Simply Wall St analysis template.

Check out our latest analysis for Jahez International Company for Information Systems Technology

Is Jahez International Company for Information Systems Technology fairly valued?

We use the 2-stage growth model, which simply means that we consider two stages of business growth. In the initial period, the company may have a higher growth rate, and the second stage is generally assumed to have a stable growth rate. In the first step, we need to estimate the company’s cash flow over the next ten years. Wherever possible, we use analysts’ estimates, but where these are not available, we extrapolate the previous free cash flow (FCF) from the latest estimate or reported value. We assume that companies with decreasing free cash flow will slow their rate of contraction and companies with increasing free cash flow will see their growth rate slow during this period. We do this to reflect the fact that growth tends to slow more in early years than in later years.

Generally, we assume that a dollar today is worth more than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at an estimate of present value:

10-Year Free Cash Flow (FCF) Forecast

2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Leveraged FCF (SAR, Millions) ر.س240.0m ر.س377.0m ر.س504.0m ر.س571.0m ر.س632.2m ر.س696.6m ر.س765.1m ر.س838.2m ر.س916.9m ر.س1.00b
Growth rate estimate Source Analyst x1 Analyst x1 Analyst x1 Analyst x1 Is at 10.72% Is at 10.19% Is at 9.82% Is at 9.56% Is at 9.38% Is at 9.26%
Present value (SAR, millions) discounted at 14% ر.س210 ر.س289 ر.س339 ر.س337 ر.س327 ر.س315 ر.س303 ر.س291 ر.س279 ر.س267

(“East” = FCF growth rate estimated by Simply Wall St)
10-year discounted cash flow (PVCF) = ر.س3.0b

We now need to calculate the terminal value, which represents all future cash flows after this ten-year period. For a number of reasons, a very conservative growth rate is used which cannot exceed that of a country’s GDP growth. In this case, we used the 5-year average of the 10-year government bond yield (9.0%) to estimate future growth. Similar to the 10-year “growth” period, we discount future cash flows to present value, using a cost of equity of 14%.

Terminal value (TV)= FCF2031 × (1 + g) ÷ (r – g) = ر.س1.0b × (1 + 9.0%) ÷ (14%– 9.0%) = ر.س21b

Present value of terminal value (PVTV)= TV / (1 + r)ten= ر.س21b÷ ( 1 + 14%)ten= ر.س5.6b

The total value is the sum of the cash flows for the next ten years plus the present terminal value, which gives the total equity value, which in this case is ر.س8.6b. The final step is to divide the equity value by the number of shares outstanding. Compared to the current share price of ر.س974, the company appears around fair value at the time of writing. The assumptions of any calculation have a big impact on the valuation, so it’s best to consider this as a rough estimate, not accurate down to the last penny.

SASE: 9526 Discounted cash flow June 5, 2022

The hypotheses

We emphasize that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own assessment of a company’s future performance, so try the math yourself and check your own assumptions. The DCF also does not take into account the possible cyclicality of an industry, nor the future capital needs of a company, so it does not give a complete picture of a company’s potential performance. Since we consider Jahez International Company for Information Systems Technology as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which takes into account the debt. In this calculation, we used 14%, which is based on a leveraged beta of 1.045. Beta is a measure of a stock’s volatility relative to the market as a whole. We derive our beta from the average industry beta of broadly comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable company.

Let’s move on :

While important, the DCF calculation will ideally not be the only piece of analysis you look at for a business. The DCF model is not a perfect stock valuation tool. Instead, the best use of a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. If a company grows at a different pace, or if its cost of equity or risk-free rate changes sharply, output may be very different. For Jahez International Company for Information Systems Technology, we have put together three essential aspects that you should assess:

  1. Risks: Take risks, for example – Jahez International Company for Information Systems Technology has 1 warning sign we think you should know.
  2. Future earnings: How does the growth rate of 9526 compare to its peers and the market in general? Dive deeper into the analyst consensus figure for the coming years by interacting with our free analyst growth forecast chart.
  3. Other strong companies: Low debt, high returns on equity and good past performance are essential to a strong business. Why not explore our interactive list of stocks with strong trading fundamentals to see if there are any other companies you may not have considered!

PS. The Simply Wall St app performs a discounted cash flow valuation for each stock on the SASE every day. If you want to find the calculation for other stocks, search here.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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