Discounted Cash Flow Calculation for JMSE:KW 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.
JMSE:KW DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
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
Kingston Wharves's earnings available for a low price, and how does
this compare to other companies in the same industry?
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Kingston Wharves has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Infrastructure industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Kingston Wharves's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Kingston Wharves's earnings growth to the market average as no estimate data is available.
Unable to compare Kingston Wharves's revenue growth to the market average as no estimate data is available.
Unable to determine if Kingston Wharves is high growth as no earnings estimate data is available.
Unable to determine if Kingston Wharves is high growth as no revenue estimate data is available.
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.
Kingston Wharves'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
5/6, 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
Kingston Wharves's finances.
The net worth of a company is the difference between its assets and liabilities.
Kingston Wharves is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Kingston Wharves's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Kingston Wharves'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 3.2x 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 Williams has been the Chief Executive Officer of Kingston Wharves Limited since January 6, 2020 and had been its Chief Operating Officer since 2011 until January 6, 2020. Mr. Williams served as a Group Chief Marketing & Planning Officer at Kingston Wharves Limited. Mr. Williams provides strategic direction for marketing and planning for Kingston Wharves. Mr. Williams has specific responsibility for domestic and international commercial business development, product development, branding and pricing, as well as business and strategic planning. He oversees customer service delivery across the organization, in addition to leading and managing the Kingston's annual strategic planning process. He is also responsible for identifying major future initiatives for business growth and development. Providing executive leadership to the overall organization, as well as management team, he also facilitates quantitative analysis and assessment of the Kingston's business performance.
Insufficient data for Mark to compare compensation growth.
Insufficient data for Mark to establish whether their remuneration is reasonable compared to companies of similar size in .
Chief Executive Officer
Human Resources & Administration Manager
Marketing & Client Services Manager
Managing Director of Security Administrators Limited
Board of Directors Tenure
Average tenure of the
board of directors in years:
The tenure for the Kingston Wharves board of directors is about average.
Board of Directors
Grantley St. Stephenson
Kathleen A. Moss
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Kingston Wharves Limited operates multi-purpose port terminal in the Caribbean. The company operates through Terminal Operations; and Logistics Services segments. It engages in the operation of public wharves and stevedoring of vessels. The company also operates warehousing and logistics facilities; provides security services; rents and repairs cold storage facilities; and rents properties. In addition, it offers verified gross mass services for full container load shipment; and transshipment services. Its port terminal provides a range of cargo handling and logistics services, including mooring and unmooring of vessels; equipment rental; stripping, stuffing, and reconsolidation of containers; refrigerated container management and support; and labor services. Kingston Wharves Limited was founded in 1945 and is based in Kingston, Jamaica.
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