Discounted Cash Flow Calculation for CNSX:TRUL 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:TRUL 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.
Trulieve Cannabis's share price is below the future cash flow value, and at a moderate discount (> 20%).
Trulieve Cannabis'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
Trulieve Cannabis's earnings available for a low price, and how does
this compare to other companies in the same industry?
Trulieve Cannabis's earnings are expected to grow significantly at over 20% yearly.
Trulieve Cannabis'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.
Trulieve Cannabis'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.
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
Trulieve Cannabis's finances.
The net worth of a company is the difference between its assets and liabilities.
Trulieve Cannabis is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Trulieve Cannabis's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Trulieve Cannabis'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.
High level of physical assets or inventory.
Debt is covered by short term assets, assets are 4.6x 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
Ms. Kimberly Rivers, also known as Kim, serves as Chairman and Chief Executive Officer of Trulieve Cannabis Corp. and has been its Director since November 2015. Ms. Rivers is a member of the Georgia Bar association and she spent several years in private practice as a lawyer where she specialized in mergers, acquisitions, and securities for multi-million dollar companies. For over a decade, Ms. Rivers has run numerous successful businesses from real estate to finance. Ms. Rivers received her Bachelor's degree in Multinational Business and Political Science from Florida State University and her Juris Doctorate from the University of Florida.
Insufficient data for Kim to compare compensation growth.
Kim's remuneration is lower than average for companies of similar size in Canada.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the Trulieve Cannabis management team is less than 2 years, this suggests a new team.
CEO & Chairman
Chief Financial Officer
Chief Operating Officer
Chief Information Officer
Director of Investor Relations
General Counsel & Corporate Secretary
Director of Marketing & Community Relations
Senior Human Resources Director
Director of Retail
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Trulieve Cannabis board of directors is about average.
Board of Directors
CEO & Chairman
Who owns this company?
Recent Insider Trading
No 3 month individual insider trading information.
Trulieve Cannabis Corp. (CNSX:TRUL): What Can We Expect From This High Growth Stock?
Today I want to provide a brief commentary on how market analysts perceive Trulieve Cannabis's earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. … View our latest analysis for Trulieve Cannabis Analysts' expectations for this coming year seems optimistic, with earnings rising by a significant 67%. … CNSX:TRUL Past and Future Earnings, May 21st 2019 Even though it is informative understanding the rate of growth each year relative to today’s value, it may be more valuable determining the rate at which the company is rising or falling on average every year.
Should We Be Delighted With Trulieve Cannabis Corp.'s (CNSX:TRUL) ROE Of 35%?
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … To keep the lesson grounded in practicality, we'll use ROE to better understand Trulieve Cannabis Corp. … That means that for every CA$1 worth of shareholders' equity, it generated CA$0.35 in profit.
Trulieve Cannabis Corp. (CNSX:TRUL): Commentary On Fundamentals
As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … financial health as well as
Should You Be Excited About Trulieve Cannabis Corp.'s (CNSX:TRUL) 35% Return On Equity?
To keep the lesson grounded in practicality, we'll use ROE to better understand Trulieve Cannabis Corp. … That means that for every CA$1 worth of shareholders' equity, it generated CA$0.35 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Is Trulieve Cannabis Corp's (CNSX:TRUL) Balance Sheet Strong Enough To Weather A Storm?
Trulieve Cannabis Corp (CNSX:TRUL) is a small-cap stock with a market capitalization of CA$134m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … So, understanding the company's financial health becomes
Trulieve Cannabis Corp., together with its subsidiaries, operates as a medical marijuana company. The company cultivates and produces products in-house and distributes its products to Trulieve branded stores (dispensaries) in Florida, as well as directly to patients via home delivery. It produces approximately 170 stock keeping units, including smokable flowers, flower pods for vaporizing, concentrates, topicals, capsules, tinctures, and vape cartridges. The company operates 26 stores. Trulieve Cannabis Corp. is headquartered in Quincy, Florida.
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