Discounted Cash Flow Calculation for JSE:PMV using Dividend Discount Model Model
The calculations below outline how an intrinsic value for
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.
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.
Primeserv Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).
Primeserv 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
Primeserv Group's earnings available for a low price, and how does
this compare to other companies in the same industry?
Primeserv Group's earnings are expected to grow by 5.2% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Primeserv Group 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.
Primeserv 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
4/6, 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.
Mr. Merrick Abel, BA (Hons), MBA, founded Primeserv Group Limited in 1997 and serves as its Chief Executive Officer and served as its Acting Chairman until March 31, 2016. Mr. Abel served as an Executive Chairman of Primeserv Group Limited from 2000 to 2003. He has many years' local and international commercial experience, particularly in the industrial and services industries. He has been an Executive Director of Primeserv Group Limited since August 1997. He holds BA (Hons) and MBA.
Merrick's compensation has been consistent with company performance over the past year, both up more than 20%.
Merrick's remuneration is higher than average for companies of similar size in South Africa.
CEO & Executive Director
Financial Director & Executive Director
Group Legal & Risk Officer
Marilis van Rensburg
Jeanette Van Greunen
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Primeserv Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors
Chairman & Lead Independent Non-Executive Director
CEO & Executive Director
Financial Director & Executive Director
Independent Non-Executive Director
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Primeserv Group Limited, an investment holding company, provides integrated business support services in South Africa. The company operates through Staffing Services, and Training and Consulting Services segments. It offers staffing services, such as permanent recruitment, temporary recruitment, temporary employment, payroll, functional outsourcing, business process outsourcing, time and attendance system, customized management information reporting, HR and IR, mega-project, and lifestyle and employee benefit services, as well as productivity services and solutions. The company also provides training and consultancy services that include technical training, corporate training, and human capital consulting services. In addition, it offers accredited training and skills development, skills training center, and leadership services. The company serves industries, such as agriculture, automotive, banking, building and construction, design and draughting, drivers and transportation, engineering and fabrication, facilities management, financial and insurance, food production, government services, harbors and railways, hospital, nursing, medical, logistics and distribution centers, mechanical, merchandising, mining, paper and pulp, petrochemical, pharmaceutical, power generation, retail and wholesale, secretarial and office support, tourism and hospitality, telecoms, telemarketing and call centers, warehousing, and waste management. Primeserv Group Limited was founded in 1997 and is headquartered in Sandton, the Republic of South Africa.
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