Discounted Cash Flow Calculation for DB:5EH 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 use
analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
DB:5EH DCF 1st Stage: Next 5 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.
Engility Holdings's share price is below the future cash flow value, but not at a moderate discount (< 20%).
Engility Holdings's share price is below the future cash flow value, but not 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
Engility Holdings's earnings available for a low price, and how does
this compare to other companies in the same industry?
Engility Holdings's earnings are expected to grow significantly at over 20% yearly.
Engility Holdings's revenue is expected to grow by 2.3% 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.
Engility 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
Aerospace & Defense
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
Engility Holdings's finances.
The net worth of a company is the difference between its assets and liabilities.
Engility Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Engility Holdings's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Engility 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.
Low level of unsold assets.
Debt is not covered by short term assets, assets are 0.4x 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
Ms. Lynn A. Dugle has been Chief Executive Officer at Engility Holdings, Inc. since March 21, 2016, Chairman since March 1, 2018 and is its President. Ms. Dugle has more than 30 years of experience in the defense, intelligence and high-tech industries. Ms. Dugle served as Head of Intelligence, Information and Services Business at Raytheon Company since April 2015. Ms. Dugle served as the President of Raytheon Intelligence and Information Systems from January 1, 2009 to April 2013 and served as its Vice President from July 1, 2008 to March 2015. She served as Vice President of Raytheon Company from July 1, 2008 to March 2, 2015 and served as its President of The Intelligence, Information and Services Business Unit from April 1, 2013 to March 2, 2015. She joined Raytheon in April 2004. She served as the President of Intelligence & Information Systems at Raytheon Company from January 1, 2009 to April 2013 and also served as Deputy General Manager of Intelligence & Information Systems from June 2008 to December 2008. She served as Deputy General Manager of Raytheon Intelligence and Information Systems since July 1, 2008. She served as Vice President of Engineering, Technology and Quality of Network Centric Systems (NCS) business of Raytheon, where she was responsible for the strategic direction, leadership and operations of the function. She held a wide range of challenging, officer-level positions with ADC Telecommunications. She was responsible for leading teams in Europe and the Asia Pacific region. Her previous international experience includes managing design and production facilities in Austria and Argentina. Ms. Dugle began her career at Texas Instruments in 1982 as a Program Engineer and served as its Vice President of Quality for the Defense Systems and Electronics Group. While at Texas Instruments, she held positions in manufacturing, operations, supply chain management, quality, financial analysis, strategic planning and productivity programs. She serves on the Raytheon Australia Board of Directors, the Southern Methodist University Graduate program Board of Knowledge and the Texans Credit Union Board of Directors. She has been a Director at Engility Holdings, Inc. since February 26, 2015. she has been Independent Director at State Street Corporation since December 21, 2015. She serves as a Director of Intelligence and National Security Alliance and TASC, Inc. She served as a Director of Raytheon Australia Pty Ltd. until March1, 2015. She is a Member of the Defense Science Board, the CyberPatriot Board of Advisors, the Clemson University's College of Engineering and Science (CoES) Advisory Board and the Raytheon Australia Board of Directors. She served on the Boards of the Collin County Red Cross, Collin County March of Dimes and the Dallas Metropolitan Area United Way. Ms. Dugle earned two degrees from Purdue University, including a Bachelor's degree in Technical Management and a Bachelor's degree in Spanish. She earned her Master's in Business Administration from the University of Texas at Dallas. She serves as Director at State Street Bank and Trust Company (Boston, MA).
Lynn's compensation has been consistent with company performance over the past year.
Lynn's remuneration is higher 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 Engility Holdings management team is about average.
CFO & Senior VP
Chief Human Resources Officer and Senior Vice President
Chief Accounting Officer
Vice President of Investor Relations
VP, Deputy General Counsel
Vice President of Communications
Senior Vice President of Corporate Growth & Development
Senior Vice President of Space & Mission Systems Group
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Engility Holdings board of directors is about average.
Engility Holdings, Inc., together with its subsidiaries, provides a range of technical services to the U.S. Department of Defense, U.S. Department of Justice, U.S. Department of State, Federal Aviation Administration, Department of Homeland Security, and space-related and intelligence community agencies. It offers systems engineering and integration services, including engineering and technology lifecycle support, information assurance, modeling and simulation, and architecture analysis and modernization; and cybersecurity services, such as vulnerability assessments and penetration testing, independent test and evaluation, cybersecurity systems engineering, cyber quick reaction range capability, and cyber hunting. The company also provides high performance computing services comprising architecture and infrastructure design, data management and analytics, and integration and testing, as well as systems operation, optimization, and sustainment; and enterprise modernization services, which include architecture analysis and modernization, information technology services and solutions, and software development and integration. In addition, it offers mission and operations support solutions in the areas of artificial intelligence, space launch and space flight, law enforcement, intelligence analysis, air traffic management, engineering and fabrication, and communication data exchange; and readiness and training solutions, including training development, learning, and knowledge management. The company was incorporated in 2012 and is based in Chantilly, Virginia. Engility Holdings, Inc. is a subsidiary of Birch Partners, LP.
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