Discounted Cash Flow Calculation for CNSX:MJAR 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.
CNSX:MJAR 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.
MJardin Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
MJardin Group'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
MJardin Group's earnings available for a low price, and how does
this compare to other companies in the same industry?
Unable to determine if MJardin Group is high growth as no earnings estimate data is available.
MJardin Group'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.
MJardin 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
0/6, 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. Adrian T. Montgomery is Chairman and interim Chief Executive Officer of MJardin Group, Inc. since February 19, 2019. Mr. Montgomery has been an Independent Director of Epsilon Energy Ltd. (Canada) since July 15, 2013. He serves as Chief Executive Officer & Director at J55 Capital Corp. He served as the Chief Executive Officer of Quantum Murray LP and was also the former CEO of QM Environmental, one of Canada’s largest contracting companies. Mr. Montgomery served as President at ClearStream Energy Services Inc. since December 17, 2014 until June 29, 2015. Mr. Montgomery served as the Chief Investment Officer of ClearStream Energy Services Inc. since its inception in 2005 until December 17, 2014. He is a key Member of the ClearStream Energy Services Inc. executive team that has reshaped ClearStream Energy Services Inc. over the past two years and was involved in the successful dispositions of clearstream’s non-core operations, consolidation of minority positions in clearstream’s core areas, securing new financing packages for clearstream, converting clearstream from an income trust to a corporation and engineering a total rebranding of the organization. He served as Vice President of Tuckamore Capital Management Inc. since January 2010 and was its President. He served as a Vice President of Newport Partners GP Inc since January 2010. He Headed business development at Rogers Media Inc., where he oversaw a number of business development initiatives in the fields of sports and entertainment. He has been a Director of NeuroBiopharm Inc. since June 20, 2014. He served as an Independent Director of Acasti Pharma Inc. since June 20, 2014 until February 29, 2016. He served as a Director of ClearStream Energy Services Inc since October 1, 2015 until June 21, 2017. He served as a Director of Neptune Technologies & Bioresources, Inc. from June 19, 2014 to July 215. He spearHeaded several landmark alliances with the National Football League, the International Olympic Committee, the FIFA World Cup, Live Nation Music and CBS Paramount. He was the President and Chief Information Officer of Tuckamore Capital Management Inc. from February 2012 to March 2016. A lawyer, Mr. Montgomery is active in the political process and has served as a Senior Adviser to politicians at all levels of government. In the past, he has been a sought after media personality and panelist on CBC and Global Television. He is a Member of the New York State Bar and the Young Presidents’ Organization. He is also involved in a number of charitable endeavours and sits on the Board of Special Olympics Canada and sits on the Board of the Toronto East General Hospital Foundation.
Insufficient data for Adrian to compare compensation growth.
Insufficient data for Adrian to establish whether their remuneration is reasonable compared to companies of similar size in Canada.
Chairman & Interim CEO
Chief Financial Officer
Chief Operating Officer
Chief Accounting Officer
Chief Strategy Officer
Executive Vice President of International Corporate Development
How Financially Strong Is MJardin Group Inc (CNSX:MJAR)?
Investors are always looking for growth in small-cap stocks like MJardin Group Inc (CNSX:MJAR), with a market cap of CA$281m. … However, an important fact which most ignore is: how financially healthy is the business? … the current state of its operations and pathway to profitability.
MJardin Group, Inc., through its subsidiaries, operates as a specialized cannabis management company primarily in the United States and Canada. The company offers its partners turnkey cannabis cultivation, processing, and retail solutions, including licensure support, facility design, systems implementation, equipment leasing, and facility ramp-up services, as well as day-to-day personnel management and oversight, and operation services for large scale production facilities. It holds 36 cultivation, processing, and retail facilities under management. The company serves licensed cannabis cultivators, processors, and dispensaries. MJardin Group, Inc. was founded in 2014 and is headquartered in Denver, Colorado.
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