Crescent Acquisition Corp. intends to acquire assets and businesses through a merger, capital stock exchange, stock purchase, reorganization, or business combination.
The last earnings update was 9 days ago.
Discounted Cash Flow Calculation for NasdaqCM:CRSA using Excess Returns Model Model
The calculations below outline how an intrinsic value for Crescent Acquisition 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
Crescent Acquisition'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 Crescent Acquisition 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 Crescent Acquisition's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Crescent Acquisition's earnings growth to the United States of America market average as no estimate data is available.
Unable to compare Crescent Acquisition's revenue growth to the United States of America market average as no estimate data is available.
Unable to determine if Crescent Acquisition is high growth as no earnings estimate data is available.
Unable to determine if Crescent Acquisition 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.
Crescent Acquisition'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.
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
Crescent Acquisition's finances.
The net worth of a company is the difference between its assets and liabilities.
Crescent Acquisition is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Crescent Acquisition's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Crescent Acquisition'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 covered by short term assets, assets are 10.1x 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. Todd M. Purdy has been Chief Executive Officer of Crescent Funding Inc. since November 2018 and serves as its Director. Mr. Purdy is a seasoned private equity investor with years of investment industry experience. He was a Partner at Leonard Green & Partners, L.P until 2018. He joined Leonard Green & Partners in 2000 and focused on investments in the consumer, retail and services sectors. Prior to LGP, Mr. Purdy was an investment banker with Donaldson, Lufkin & Jenrette in Los Angeles and London. He was employed at DLJ since 1997. Mr. Purdy serves as a Member of the Board of Directors of, HITS, Inc.; Jo-Ann Stores, Inc.; Motorsport Aftermarket Group; The Sports Authority, Inc.; and Tourneau, Inc. Mr. Purdy is Director of Ralco Holdings, Inc. He was actively involved in LGP’s investments in Advantage Solutions and J.Crew. He served on the Board of Directors of Motorsport Aftermarket Group and Varsity Brands, Inc. He received a B.A. degree in Honors Business Administration from the Richard Ivey School of Business at the University of Western Ontario.
Insufficient data for Todd to compare compensation growth.
Insufficient data for Todd to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the Crescent Acquisition management team is less than 2 years, this suggests a new team.
CEO & Director
CFO & Treasurer
General Counsel & Secretary
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Crescent Acquisition board of directors is less than 3 years, this suggests a new board.
Board of Directors
Chairman of the Board
CEO & Director
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Can We See Significant Institutional Ownership On The Crescent Acquisition Corp. (NASDAQ:CRSA) Share Register?
With a market capitalization of US$306m, Crescent Acquisition is a small cap stock, so it might not be well known by many institutional investors. … See our latest analysis for Crescent Acquisition NasdaqCM:CRSA Ownership Summary, August 1st 2019 What Does The Institutional Ownership Tell Us About Crescent Acquisition? … General Public Ownership The general public -- mostly retail investors -- own 80% of Crescent Acquisition.
Crescent Acquisition Corp. intends to acquire assets and businesses through a merger, capital stock exchange, stock purchase, reorganization, or business combination. The company was formerly known as Crescent Funding Inc. and changed its name to Crescent Acquisition Corp. in October 2018. The company was founded in 2017 and is based in Los Angeles, California.
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