Discounted Cash Flow Calculation for NasdaqCM:BWMC using Excess Returns Model Model
The calculations below outline how an intrinsic value for Boxwood Merger is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
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
Boxwood Merger'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 Boxwood Merger 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 Capital Markets industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Boxwood Merger's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Boxwood Merger's earnings growth to the United States of America market average as no estimate data is available.
Unable to compare Boxwood Merger's revenue growth to the United States of America market average as no estimate data is available.
Unable to determine if Boxwood Merger is high growth as no earnings estimate data is available.
Unable to determine if Boxwood Merger 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.
Boxwood Merger'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
1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
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. Stephen M. Kadenacy, also known as Steve, has been President, Chief Executive Officer and Chairman of the Board at Boxwood Merger Corp. since August 2018. Mr. Kadenacy served as the President of AECOM since October 17, 2014 until June 2017 and served as its Chief Operating Officer since October 2016 until June 2017. He served as the Chief Financial Officer of AECOM from October 1, 2011 to October 5, 2015. Mr. Kadenacy served as Executive Vice President of AECOM Technology Corporation since October 1, 2011. At AECOM, Mr. Kadenacy leads Corporate Finance team and is responsible for Financial Planning and Analysis, Corporate Controllership, Government Accounting, Operational Finance, Group Chief Financial Officers, Procurement and Real Estate. He leads the F&A aspects of the Global Organization Development effort and other corporate initiatives. He served as Senior Vice President of Corporate Finance at AECOM Technology Corporation from May 2008 to September 2011. Mr. Kadenacy was with the accounting firm KPMG LLP in San Francisco since 1996. Prior to AECOM, he served as Partner in Charge of Americas Global Transfer Pricing Services at KPMG LLP. During his 12-year tenure, he held several leadership roles at KPMG, serving some of its most valued clients, including IBM, Viacom, Time Warner and Herbalife. At KPMG, he was identified as one of KPMG’s global lead partners and was admitted to the inaugural class of the “Chairman’s 25” group in 2002. His advisory projects ranged from international restructurings to advising clients through complex, multi-year financial restatements. Prior to KPMG, He served as Economic Counsel at Putnam, Hayes and Bartlett. He served as an Independent Director of ABM Industries Incorporated from December 9, 2013 to October 20, 2014. Mr. Kadenacy received Bachelor of Arts in Economics from University of California-Los Angeles and earned Master of Business Administration from University of Southern California.
Insufficient data for Steve to compare compensation growth.
Insufficient data for Steve to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Chairman of the Board
Chief Financial Officer
Chief Investment Officer & Director
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Boxwood Merger board of directors is less than 3 years, this suggests a new board.
Board of Directors
Chief Investment Officer & Director
Chairman of the Board
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
What Kind Of Shareholders Own Boxwood Merger Corp. (NASDAQ:BWMC)?
Check out our latest analysis for Boxwood Merger NasdaqCM:BWMC Ownership Summary, August 1st 2019 What Does The Institutional Ownership Tell Us About Boxwood Merger? … Insider Ownership Of Boxwood Merger While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. … Private Company Ownership It seems that Private Companies own 20%, of the BWMC stock.
Boxwood Merger Corp. does not have significant operations. It intends to target, identify, and complete its initial business combination with a company that offers technical and industrial services in a range of industries. The company was founded in 2017 and is based in Santa Monica, California.
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