Discounted Cash Flow Calculation for TSXV:CNA.H 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 use
analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
TSXV:CNA.H DCF 1st Stage: Next 5 year cash flow forecast
The current share price of
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
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
CanAsia Financial'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 CanAsia Financial 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 Electronic industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare CanAsia Financial's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare CanAsia Financial's earnings growth to the Canada market average as no estimate data is available.
Unable to compare CanAsia Financial's revenue growth to the Canada market average as no estimate data is available.
Unable to determine if CanAsia Financial is high growth as no earnings estimate data is available.
Unable to determine if CanAsia Financial 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.
CanAsia Financial'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.
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
CanAsia Financial's finances.
The net worth of a company is the difference between its assets and liabilities.
CanAsia Financial's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
CanAsia Financial has no long term commitments.
This treemap shows a more detailed breakdown of
CanAsia Financial'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.
CanAsia Financial 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.
TENURE AS CEO
Mr. James G. Louie, also known as Jim has been the Chief Executive Officer and President of CanAsia Financial Inc. since November 30, 2012. Mr. Louie has been the President of Dynamax Engineering Ltd., since 1976. He served as the President of CanAsia Financial Inc., since June 16, 2008 and its Chief Executive Officer since August 25, 2008. He has been the Chairman and Director of CanAsia Financial Inc. since August 8, 2012. He served as a Director of Torch River Resources Ltd. from 2003 to October 2009. He served as Director of Tael Capital Inc. since July 1999 until its amalgamation with Torch River Resources Ltd., in April 2004. He obtained a P.Eng certification from the Association of Professional Engineers, Geologists and Geoscientists of Alberta in May 1971 and a P.Eng certification from the Association of Professional Engineers andGeoscientists of B.C. in August 1998. Mr. Louie received a Bachelor of Science Degree in Chemical Engineering from the University of Calgary in May 1969 and obtained a graduate diploma from the University of Calgary in November 1978.
Insufficient data for Jim to compare compensation growth.
Jim's remuneration is lower than average for companies of similar size in Canada.
Chief Financial Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the CanAsia Financial board of directors is less than 3 years, this suggests a new board.
CanAsia Financial Inc. does not have significant operations. Previously, the company was engaged in designing, manufacturing, and distributing optical modules to mobile device makers in China. CanAsia Financial Inc. was incorporated in 2008 and is headquartered in Calgary, Canada.
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