Discounted Cash Flow Calculation for BATS-CHIXE:MOTRL 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.
BATS-CHIXE:MOTRL 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.
Motorpoint Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
Motorpoint Group'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
Motorpoint Group's earnings available for a low price, and how does
this compare to other companies in the same industry?
Unable to determine if Motorpoint Group is high growth as no earnings estimate data is available.
Motorpoint Group's revenue is expected to grow by 7.8% 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.
Motorpoint 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
2/6, 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
Motorpoint Group's finances.
The net worth of a company is the difference between its assets and liabilities.
Motorpoint Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Motorpoint Group's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Motorpoint 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 1.5x 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. Mark Gwilym Carpenter has been the Chief Executive Officer at Motorpoint Group plc since May 2013. Mr. Carpenter served as Chief Financial Officer of Motorpoint Group plc. He has 14 years’ experience in motor retail and was previously Finance Director of Sytner Group from 2005 to 2010. He has been a Director of William Jacks PLC since February 2006 and Motorpoint Group plc since April 12, 2016. Mr. Carpenter serves as Director of Donald Healey Motor Company Limited; Goodman Leeds Limited; Graypaul Motors Limited; Guy Salmon Highgate Limited; Guy Salmon Jaguar Limited; Hallamshire Motor Company Limited; Kings Motors Limited; Oxford Mazda Limited; Pearlshadow Limited; Prophets (Gerrards Cross) Limited; Prophets Garage Limited; R Stratton & Co Limited; R Stratton (Knutsford) Limited; Rectory Road Limited; Riding Garages Limited; Sandridge Limited; Shires (Coventry) Limited; Sytner Cars Limited; Sytner City Limited; Sytner Direct Limited; Sytner Equals Prestige Cars Limited; Sytner Finance Limited; Sytner Holdings Limited; Sytner Limited; Sytner London Limited; Sytner of Leicester Limited; Sytner of Nottingham Limited; Sytner Online Limited; Sytner Properties (Grove Park) Limited; Sytner Properties (Harold Wood) Limited; Sytner Properties (Riverside) Limited; Sytner Properties Limited; Sytner Sheffield Limited; Toyota World Limited; UAG UK Holdings Limited; United Auto Group UK Limited; Woodcote Properties Limited; Yarnolds of Stratford Limited; Guy Salmon Honda limited; Sytner Group Limited; Hughenden Motor Company Limited; Sytner Properties (Cribbs Causeway) Limited; SP Towcester Limited; Boostmicro Limited; Aston Green Limited; Sytner.com Limited; Alpina GB Limited; Cruickshank Motors Limited; and Donald Healey Motor Company Limited. He serves as Director of MP Group Holdings Limited. He served as Director of Spring Rental Limited and Shoby Properties Limited. Prior to this, he was with Andersen, where he qualified as a Chartered Accountant.
Mark's compensation has been consistent with company performance over the past year, both up more than 20%.
Mark's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure
Average tenure of the
management team in years:
The tenure for the Motorpoint Group management team is about average.
CEO & Director
CFO & Director
Human Resource Director
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Motorpoint Group board of directors is about average.
Board of Directors
CEO & Director
CFO & Director
Independent Non-Executive Director
Senior Independent Non-Executive Director
Independent Non-Executive Director
Who owns this company?
Recent Insider Trading
Motorpoint Group individual insiders have only sold shares in the past 3 months, but not in substantial volumes.
Motorpoint Group Plc operates as an independent vehicle retailer in the United Kingdom. It primarily sells nearly-new vehicles and vehicles from various brands, including Ford, Vauxhall, Volkswagen, Nissan, Hyundai, Audi, BMW, and Mercedes-Benz. The company operates 12 retail sites across Great Britain. It also operates Auction4Cars.com, a business to business digital auction platform for selling part-exchange vehicles. In addition, the company sells motor related services comprising extended guarantees, paint protection, and gap insurance. Motorpoint Group Plc was founded in 1998 and is headquartered in Derby, the United Kingdom.
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