AFA Protective Systems, Inc., together with its subsidiaries, installs, operates, maintains, and sells protective systems to safeguard life and property from various hazards primarily in the eastern United States.
The last earnings update was 285 days ago.
Discounted Cash Flow Calculation for OTCPK:AFAP using Dividend Discount Model Model
The calculations below outline how an intrinsic value for
AFA Protective Systems
is arrived at by discounting future dividends to their present value. This
approach is used for finance firms where free cash flow is difficult to estimate
(e.g. Banks/ Insurance firms).
If the firm does not pay the majority of its earnings out as a dividend this
method will often arrive at a value significantly lower than the share price.
The current share price of
AFA Protective Systems
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
AFA Protective Systems's
is considered below, and whether this is a fair price.
Price based on past earnings
AFA Protective Systems'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 AFA Protective Systems 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 Commercial Services industry annual growth in earnings.
Earnings growth vs Low Risk Savings
AFA Protective Systems
expected to grow at an
Unable to compare AFA Protective Systems's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare AFA Protective Systems's earnings growth to the United States of America market average as no estimate data is available.
Unable to compare AFA Protective Systems's revenue growth to the United States of America market average as no estimate data is available.
Unable to determine if AFA Protective Systems is high growth as no earnings estimate data is available.
Unable to determine if AFA Protective Systems 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.
While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access AFA Protective Systems's filings and announcements here.
AFA Protective Systems'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.
AFA Protective Systems
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
AFA Protective Systems's finances.
The net worth of a company is the difference between its assets and liabilities.
AFA Protective Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
AFA Protective Systems's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
AFA Protective Systems'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 6.2x 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.
AFA Protective Systems, Inc., together with its subsidiaries, installs, operates, maintains, and sells protective systems to safeguard life and property from various hazards primarily in the eastern United States. The company offers fire alarm systems; burglar alarm, access control, and video surveillance systems; business systems, such as time keeping and telecom; communication systems, including audio/visual intercom, public address, and school communication; and emergency systems comprising mass notification, nurse call, and blue light emergency, as well security and monitoring services. It serves customers in the commercial, residential, real estate, industrial, retail, government, transportation, banking and financial, healthcare, and education sectors; and architects and engineers, and national accounts. The company was formerly known as Automatic Fire Alarm Co. and changed its name to AFA Protective Systems, Inc. in 1970. AFA Protective Systems, Inc. was founded in 1873 and is headquartered in Syosset, New York.
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