Discounted Cash Flow Calculation for DB:02H 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.
DB:02H 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.
Hexatronic Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
Hexatronic Group'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
Hexatronic Group's earnings available for a low price, and how does
this compare to other companies in the same industry?
Hexatronic Group's earnings are expected to grow significantly at over 20% yearly.
Hexatronic Group's revenue is expected to grow by 16% 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.
Hexatronic Group'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
1/6, 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
Hexatronic Group's finances.
The net worth of a company is the difference between its assets and liabilities.
Hexatronic Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Hexatronic Group's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Hexatronic Group'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 1.7x 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. Henrik Larsson-Lyon has been the Chief Executive Officer at Hexatronic Group AB (publ) (alternative name Hexatronic Scandinavia AB (publ)) since 2014. Mr. Larsson-Lyon serves as Chief Executive Officer of Thermorego AB. He serves as a Member of the Board of Thermorego AB, Memoteknik AB, Hexatronic Elektronik & Data Aktiebolag, Hexatronic Cables & Interconnect Systems AB, The Blue Shift AB, Proximion AB and Hexatronic Group AB (publ). He graduated with Economics and business studies.
Henrik's compensation has been consistent with company performance over the past year, both up more than 20%.
Henrik's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Hexatronic Group management team is about average.
CEO & Group President
Chief Financial Officer
Deputy Chief Executive Officer
President of Hexatronic AS
President of Hexatronic Cables & Interconnect Systems AB
President of Hexatronic Fiberoptic AB
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Hexatronic Group board of directors is about average.
Board of Directors
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Hexatronic Group AB (publ), together with its subsidiaries, provides fiber optic products and solutions in Sweden and internationally. The company offers a range of passive infrastructure solutions for fiber networks. It also provides components and system solutions. The company serves telecom companies, communications and telecom operators, and network owners. Hexatronic Group AB (publ) was founded in 1993 and is headquartered in Gothenburg, Sweden.
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