Discounted Cash Flow Calculation for DB:1UN 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:1UN 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.
USEN-NEXT HOLDINGSLtd's share price is below the future cash flow value, but not at a moderate discount (< 20%).
USEN-NEXT HOLDINGSLtd'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
USEN-NEXT HOLDINGSLtd's earnings available for a low price, and how does
this compare to other companies in the same industry?
USEN-NEXT HOLDINGSLtd's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
USEN-NEXT HOLDINGSLtd's revenue is expected to grow by 11% 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.
USEN-NEXT HOLDINGSLtd'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
4/6, 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
USEN-NEXT HOLDINGSLtd's finances.
The net worth of a company is the difference between its assets and liabilities.
USEN-NEXT HOLDINGSLtd is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
USEN-NEXT HOLDINGSLtd's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
USEN-NEXT HOLDINGSLtd'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 0.7x 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. Yasuhide Uno serves as Chief Executive Officer at USEN-NEXT HOLDINGS Co.,Ltd. Mr. Uno has been the President of U-NEXT Co., Ltd. since July 2010 and had been its General Manager of Mobile Business since December 2016. Mr. Uno served as the President and Chief Executive Officer of Usen Corp since July 1998. He served as President of USEN Corporation since July 1998. He joined Recruit Cosmos Co., Ltd. (now Cosmos Initia Co., Ltd.) in April 1988. He established Intelligence, Ltd. in June 1989 and served as its President. He established U'S Ongaku Shuppan Co., Ltd. (now U'S MUSIC Co., Ltd.) in April 1999. He established U's Communication Corporation (now ARTERIA Networks Corporation) in July 2000. He has been the Chairman of ALMEX, Inc. since March 2014 and USEN Corporation since March 2014. Mr. Uno served as the Chairman and Director of UCOM Corporation. He has been a Director of USEN Corporation since July 1998. He has been a Representative Director of USEN-NEXT HOLDINGS Co.,Ltd. since July 2010. Mr. Uno serves as a Representative Director of U-NEXT, Inc. He served as an Outside Director of Cyber Agent Ltd. He served as a Representative Director of Intelligence, Ltd. He served as a Representative Director at USEN Corporation since July 1998. He served as a Representative Director of U'S Ongaku Shuppan Co., Ltd. He served as a Representative Director of U's Communication Corporation since July 2000. He served as Group Chairman of USEN Corporation since November 2010.
Insufficient data for Yasuhide to compare compensation growth.
Insufficient data for Yasuhide to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the USEN-NEXT HOLDINGSLtd board of directors is about average.
Board of Directors
Outside Audit & Supervisory Board member
Full Time Auditor
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Usen-Next Holdings Co.,Ltd. offers entertainment services. Its content platform business engages in planning, developing, operating, and marketing U-NEXT, a video distribution service; and the provision of application development and infrastructure distribution services. The company also provides multi-MVNO cheap SIM, and cheap smartphone services; offers fixed-line telecommunications and optical Internet services; and operates contact centers. The company was formerly known as U-Next Co., Ltd. and changed its name to Usen-Next Holdings Co.,Ltd. in December 2017. Usen-Next Holdings Co.,Ltd. was founded in 2009 and is headquartered in Tokyo, Japan. Usen-Next Holdings Co.,Ltd. is a subsidiary of UNO-HOLDINGS Co., Ltd.
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