Discounted Cash Flow Calculation for TSX:AKU 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.
TSX:AKU 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.
Akumin's share price is below the future cash flow value, and at a moderate discount (> 20%).
Akumin'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
Akumin's earnings available for a low price, and how does
this compare to other companies in the same industry?
Akumin's earnings are expected to grow significantly at over 20% yearly.
Akumin's revenue is expected to grow significantly at over 20% yearly.
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.
Akumin'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
3/6, 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. Riadh Zine-El-Abidine also known as Riadh Zine, serves as Chief Executive Officer and President at Akumin Inc. Mr. Zine serves as President and Chief Executive Officer of Elite Imaging Inc. Mr. Zine is a Principal and Executive Chairman at Roadmap Capital Inc. He co-founded Roadmap Capital Inc. in August 2013. He has more than 15 years of experience executing public or private equity and debt financings, as well as mergers and acquisitions for a wide range of companies in the consumer, retail, healthcare, transportation and industrials sectors. Mr. Zine served as a Managing Director of Global Investment Banking at RBC Capital Markets, where he was responsible for providing strategic and financial advice to many of the largest corporations, entrepreneurs and private equity firms. Prior to joining RBC Capital Markets, he was employed at Royal Bank of Canada on a number of strategic projects, including the merger between Royal Bank of Canada and Bank of Montreal. He worked at a leading Canadian bank on a number of strategic projects. Prior to this, he worked at Royal Bank of Canada on a number of strategic projects. He has been Director at Akumin Inc since August 12, 2015. He served as a Director of Kure Technologies, Inc., (alternate name Unique Broadband Systems Inc.) since May 4, 2015 until February 28, 2017. Mr. Zine holds a M.Sc. in Financial Engineering from École des Hautes Études Commerciales, University of Montréal.
Riadh Zine's compensation has been consistent with company performance over the past year, both up more than 20%.
Riadh Zine's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure
Average tenure of the
management team in years:
The tenure for the Akumin management team is about average.
Riadh Zine Zine-El-Abidine
CFO & Corporate Secretary
Executive VP & COO
Senior Vice President
Senior Vice President
Senior VP & General Counsel
Chief Compliance Officer
Vice President of Human Resources
Chief Revenue Officer of Akumin Corp
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Akumin board of directors is less than 3 years, this suggests a new board.
Board of Directors
Riadh Zine Zine-El-Abidine
Who owns this company?
Recent Insider Trading
Akumin individual insiders have only sold shares in the past 3 months.
Should Akumin Inc (TSE:AKU) Focus On Improving This Fundamental Metric?
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every CA$1 worth of shareholders' equity, it generated CA$0.089 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Akumin Inc. provides outpatient diagnostic imaging services in the United States. As of December 31, 2018, the company operated 95 imaging centers located in Florida, Pennsylvania, Delaware, Texas, Illinois, and Kansas. Its centers provide physicians with imaging capabilities to facilitate the diagnosis and treatment of diseases and disorders, and reduce unnecessary invasive procedures. The company provides a range of medical imaging services, including magnetic resonance imaging, computed tomography, positron emission tomography, nuclear medicine, mammography, ultrasound, digital radiography, fluoroscopy, radiology, arthrography, biopsy, and other diagnostic or interventional radiology procedures; and online medical bill payment services. Akumin Inc. is headquartered in Toronto, Canada.
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