Discounted Cash Flow Calculation for CNSX:CURA 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.
CNSX:CURA 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.
Curaleaf Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
Curaleaf Holdings'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
Curaleaf Holdings's earnings available for a low price, and how does
this compare to other companies in the same industry?
Curaleaf Holdings's earnings are expected to grow significantly at over 20% yearly.
Curaleaf Holdings's revenue is expected to grow significantly at over 20% yearly.
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.
Curaleaf Holdings'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.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Curaleaf Holdings's finances.
The net worth of a company is the difference between its assets and liabilities.
Curaleaf Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Curaleaf Holdings's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Curaleaf Holdings's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is covered by short term assets, assets are 1.4x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
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
Mr. Joseph Lusardi serves as a Director of Curaleaf Holdings, Inc. since March 2016 and was its President until January, 2019. Mr. Lusardi has been the Chief Executive Officer of Curaleaf Holdings, Inc. since March 2016. Mr. Lusardi has more than 20 years of success in finance and private equity. He held previous executive positions at Affiliated Managers Group, Liberty Mutual Group and Devonshire Investors (Fidelity Investment’s private equity arm). A pioneer in the US cannabis industry, Mr. Lusardi is credited with opening the first vertically integrated cannabis operation on the East Coast and has more than seven years’ experience developing and operating medical cannabis companies in highly regulated states. In 2010 and 2014, he developed Maine Organic Therapy and Alternative Therapies Group, the first medical cannabis companies in Maine and Massachusetts. Mr. Lusardi has a B.B.A. from The Catholic University of America and a M.B.A. from Boston College.
Joseph's compensation has increased whilst company is loss making.
Joseph's remuneration is about average for companies of similar size in Canada.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the Curaleaf Holdings management team is less than 2 years, this suggests a new team.
CEO & Director
Chief Financial Officer
COO & Treasurer
Vice President of Finance & Investor Relations
Executive VP of Business Development & Interim General Counsel
Vice President of Corporate Communications
Senior Vice President of Sales
Chief Marketing Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Curaleaf Holdings board of directors is less than 3 years, this suggests a new board.
Board of Directors
CEO & Director
Chairman of the Medical Advisory Board
Member of the Medical Advisory Board
Member of the Medical Advisory Board
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Could Curaleaf Holdings, Inc.'s (CNSX:CURA) Investor Composition Influence The Stock Price?
Insider Ownership Of Curaleaf Holdings The definition of company insiders can be subjective, and does vary between jurisdictions. … However, high insider ownership can also give immense power to a small group within the company. … Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual.
Curaleaf Holdings (CNSX:CURA) Seems To Be Really Weighed Down By Its Debt
See our latest analysis for Curaleaf Holdings What Is Curaleaf Holdings's Debt? … CNSX:CURA Historical Debt, July 11th 2019 How Strong Is Curaleaf Holdings's Balance Sheet? … When analysing debt levels, the balance sheet is the obvious place to start.
How Much Of Curaleaf Holdings, Inc. (CNSX:CURA) Do Insiders Own?
A look at the shareholders of Curaleaf Holdings, Inc. … Generally speaking, as a company grows, institutions will increase their ownership. … As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'.
Curaleaf Holdings, Inc. operates as an integrated medical and wellness cannabis operator in the United States. It cultivates, processes, markets, and/or dispenses a range of cannabis products, such as vape oils and concentrates; flower, pre-rolls, and flower pods; topical lotions; capsules and tinctures; mints and lozenges; and edibles. The company also provides hemp-based CBD products. As of January 29, 2020, it operated 52 dispensaries, 14 cultivation sites, and 14 processing sites in 12 states. The company was founded in 2010 and is headquartered in Wakefield, Massachusetts.
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