Discounted Cash Flow Calculation for ASX:WSI 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.
ASX:WSI DCF 1st Stage: Next 10 year cash flow forecast
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.
WestStar Industrial's share price is below the future cash flow value, and at a moderate discount (> 20%).
WestStar Industrial's share price is below the future cash flow value, and 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
WestStar Industrial'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 WestStar Industrial 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 Metals and Mining industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare WestStar Industrial's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare WestStar Industrial's earnings growth to the Australia market average as no estimate data is available.
Unable to compare WestStar Industrial's revenue growth to the Australia market average as no estimate data is available.
Unable to determine if WestStar Industrial is high growth as no earnings estimate data is available.
Unable to determine if WestStar Industrial 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.
WestStar Industrial'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
Metals and Mining
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
0/6, 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
WestStar Industrial's finances.
The net worth of a company is the difference between its assets and liabilities.
WestStar Industrial's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
WestStar Industrial has no long term commitments.
This treemap shows a more detailed breakdown of
WestStar Industrial'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.
WestStar Industrial has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
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.
Mr. Robert Spadanuda, Dip Int Des served as General Manager of Precast Australia Pty Ltd. Mr. Spadanuda has specialized skills in financial and project management and heads the management team that oversees both the strategic direction and day-to-day functioning of Precast Australia. He takes a hands-on role in the management and oversight of all significant projects. He serves as CEO of WestStar Group at WestStar Industrial Ltd.
Robert's compensation has increased whilst company is loss making.
Robert's remuneration is lower than average for companies of similar size in Australia.
Chief Executive Officer of WestStar Group
Managing Director of SIMPEC
Board of Directors
Who owns this company?
Recent Insider Trading
No 3 month individual insider trading information.
What Kind Of Shareholder Owns Most WestStar Industrial Limited (ASX:WSI) Stock?
The big shareholder groups in WestStar Industrial Limited (ASX:WSI) have power over the company. … Private Company Ownership It seems that Private Companies own 11%, of the WSI stock. … Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual.
How Many Insiders Bought WestStar Industrial Limited (ASX:WSI) Shares?
So before you buy or sell WestStar Industrial Limited (ASX:WSI), you may well want to know whether insiders have been buying or selling. … WestStar Industrial Insider Transactions Over The Last Year. … Even though the purchase was made at a significantly lower price, we still think insider buying is a positive
Do Insiders Own Shares In WestStar Industrial Limited (ASX:WSI)?
If you want to know who really controls WestStar Industrial Limited (ASX:WSI), then you'll have to look at the makeup of its share registry. … With a market capitalization of AU$7.9m, WestStar Industrial is a small cap stock, so it might not be well known by many institutional investors. … institutions are not really that prevalent on the share registry
How Does WestStar Industrial Limited (ASX:WSI) Affect Your Portfolio Volatility?
Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.
WestStar Industrial Limited (ASX:WSI): Should The Recent Earnings Drop Worry You?
After reading WestStar Industrial Limited's (ASX:WSI) most recent earnings announcement (31 December 2017), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … Each year, for the past five years WestStar Industrial has seen an annual decline in revenue of -31.15%, on average. … This means any tailwind the industry is enjoying, WestStar Industrial has not been able to reap as much as its industry peers.What does this mean?
Who Are The Largest Shareholders In WestStar Industrial Limited (ASX:WSI)?
Check out our latest analysis for WestStar Industrial ASX:WSI Ownership_summary Feb 23rd 18 Institutional Ownership Institutional investors are one of the largest group of market participants and their buy-sell decisions on a company's stock can significantly impact prices, more so, when there are relatively small amounts of shares available on the market to trade. … Private Company Ownership Potential investors in WSI should also look at another important group of investors: private companies, with a stake of 24.34%, who are primarily invested because of strategic and capital gain interests. … As a result, potential investors should further explore the company's business relations with these companies and find out if they can affect shareholder returns in the long-term.Next Steps: With a low level of institutional ownership, investors in WSI need not worry about non-fundamental factors such as ownership structure causing large impact on stock prices.
Are WestStar Industrial Limited's (ASX:WSI) Interest Costs Too High?
How does WSI’s operating cash flow stack up against its debt? … WSI’s debt and cash flow levels indicate room for improvement. … Although short-term liquidity isn't a concern, WSI's high debt levels on top of poor cash coverage may not be what you're after in an investment.
WestStar Industrial Limited primarily manufactures and sells precast concrete products in Australia. The company operates through three segments: Precast, SIMPEC, and Distinct. It also manufactures structures and elements; explores for mineral properties; undertakes construction contracting work in structural, mechanical, and piping, as well as electrical and instrumentation works; and develops properties. The company is based in Kwinana Beach, Australia.
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