Cardno Limited, a professional infrastructure and environmental services company, engages in the development and improvement of physical and social infrastructure for communities worldwide.
The last earnings update was 42 days ago.
Discounted Cash Flow Calculation for CHIA:CDD using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
Note: Free cash flow to equity valuations ignore the company's cash or debt.
CHIA:CDD DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Cardno's share price is below the future cash flow value, and at a moderate discount (> 20%).
Cardno's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Cardno's earnings available for a low price, and how does
this compare to other companies in the same industry?
Cardno's earnings are expected to grow significantly at over 20% yearly.
Cardno's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Cardno's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Ms. Susan Reisbord has been Chief Executive Officer and Managing Director of Cardno Limited since Cardno Limited since November 4, 2019. She served as Chief Executive Officer of Americas Region & President of Science & Environment at Cardno Limited. Ms. Reisbord served as General Manager of Strategic Business Development at Cardno Limited since September 2015. Ms. Reisbord was responsible for working with its regional leadership teams around the globe to implement the Strategic Review, grow the business, and strengthen client relationships. Her experience spans thirty years in the consulting engineering and construction industry. She zjoined Cardno in 2015. She was a senior executive with GHD and MWH Global in North America. Her strategic leadership and business development skills were honed as a front-line Client Service Manager for clients such as the City of New York and General Electric Company. She holds a Master of Physical Sciences in Geochemistry from the University of Chicago (1982 – 1983) and a Bachelor of Science in Geology from the University of Cincinnati (1979 – 1982).
Insufficient data for Susan to compare compensation growth.
Insufficient data for Susan to establish whether their remuneration is reasonable compared to companies of similar size in Australia.
Management Team Tenure
Average tenure of the
management team in years:
The average tenure for the Cardno management team is less than 2 years, this suggests a new team.
CFO & Joint Company Secretary
CEO, MD & Director
Chief Technology Officer
General Counsel & Interim Joint Company Secretary
Corporate Marketing Manager
Global HR Manager
Chief Financial Officer of Asia Pacific
Legal Counsel & Joint Company Secretary (Leave of Absence)
Chief Digital Officer
Chief Executive Officer of Construction Sciences Division
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Cardno board of directors is about average.
Board of Directors
Non-Executive Chairman of the Board
CEO, MD & Director
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Cardno Limited, a professional infrastructure and environmental services company, engages in the development and improvement of physical and social infrastructure for communities worldwide. The company’s Asia Pacific Engineering and Environmental segment provides services in civil, structural, water, environmental, coastal, bridge, geotechnical, subsurface utility, traffic, and transport engineering, as well as environmental science, surveying, landscape architecture, planning, and asset management. Its Americas Engineering and Environmental segment delivers expertise to private and public sector clients across the environmental, water, transportation, energy and resources, land, buildings, and management services sectors. The company’s International Development segment designs and implements large-scale sustainable solutions for development assistance agencies and private clients. Its Construction Sciences segment engages in the geotechnical engineering, environmental consulting, and materials testing business. The company’s Other segment engages in the engineering and consulting operations in Latin America; and provision of quality testing and services to the oil and gas sector. It serves defence, energy, government, industrial, international development, land management, mining and resources, property and buildings, transportation, utilities, and water sectors. Cardno Limited was founded in 1945 and is headquartered in Fortitude Valley, Australia.
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