Discounted Cash Flow Calculation for SNSE:CAP 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.
SNSE:CAP 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.
CAP's share price is below the future cash flow value, and at a moderate discount (> 20%).
CAP'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
CAP's earnings available for a low price, and how does
this compare to other companies in the same industry?
CAP's earnings are expected to grow significantly at over 20% yearly.
CAP's revenue is expected to grow by 5.2% yearly, however this is not considered high growth (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.
CAP'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
Metals and Mining
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
2/6, 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
Mr. Erick Weber Paulus has been President and Chief Executive Officer of CAP S.A. since 2017. Mr. Weber serves as General Manager of Compañía Minera del Pacífico S.A. and served as its President. He served as Vice President of Technical of Compania Minera Del Pacifico S.A. He serves as a Director at Sociedad de Ingenieria y Movimientos de Tierra del Pacifico Ltd. and Sociedad de Ingenieria y Movimientos de Tierra del Pacifico Ltd.
Insufficient data for Erick to compare compensation growth.
Insufficient data for Erick to establish whether their remuneration is reasonable compared to companies of similar size in .
Management Team Tenure
Average tenure of the
management team in years:
The average tenure for the CAP management team is less than 2 years, this suggests a new team.
Erick Weber Paulus
President & CEO
Raúl Gamonal Alcaíno
Senior EVP & CFO
Patricio M. Valdivia
Stefan Franken Osorio
Chief Legal Counsel & Secretary of the Board
Andrés Bustos Moretti
Senior Executive Vice President and Controller
Head of Corporate Planning
Arturo Wenzel Álvarez
Senior VP and Chief of Development & New Businesses
Chief Executive Officer of Pacific Ores and Trading N V (Curaçao)
Board of Directors Tenure
Average tenure of the
board of directors in years:
The average tenure for the CAP board of directors is less than 3 years, this suggests a new board.
Board of Directors
Rodolfo Krause Lubascher
Jorge Salvatierra Pacheco
Vice President of the Board
Roberto de Andraca Adriasola
Juan Enrique Rassmuss
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
CAP S.A. engages in iron ore mining, steel production, and steel processing businesses in Chile and internationally. It operates in four segments: CAP Mining, CAP Steel, CAP Steel Processing, and CAP Infraestructura. The company extracts, processes, and sells minerals; and produces iron ore and pellets in the Pacific coast. It also produces and sells rods for ore grinding and reinforcing concrete, and other rod products for distributors and construction companies, processors and industrial companies, manufacturers of metal packaging, wire drawers, tube and profile factories, metal workshops, and mines. In addition, the company engages in cutting of coils; pressing of cold, hot, and galvanized rolled sheets; and manufacture and sale of seamed steel pipes, and steel pipes and profiles for dry construction, as well as the provision various solutions for the construction, residential, industrial, commercial, highway engineering, mining, and other sectors. Further, it sells galvanized steel sections for dry construction under the STEEL HOUSE brand; provides tubular steel products; produces and conducts desalinated water in Atacama region to provide water to the mining companies; and constructs power transmission lines. The company was formerly known as Compañía de Acero del Pacífico S.A. de Inversiones and changed its name to CAP S.A. in May 1991. CAP S.A. was founded in 1946 and is based in Las Condes, Chile.
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