China Outfitters Holdings Limited, an investment holding company, designs, manufactures, markets, and sells apparels and accessories in the People’s Republic of China.
The last earnings update was 104 days ago.
Discounted Cash Flow Calculation for DB:CFO using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
China Outfitters Holdings
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.
DB:CFO DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
China Outfitters Holdings
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
China Outfitters Holdings's
is considered below, and whether this is a fair price.
Price based on past earnings
China Outfitters Holdings's earnings available for a low price, and how does
this compare to other companies in the same industry?
China Outfitters Holdings's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if China Outfitters Holdings 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.
China Outfitters Holdings'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.
China Outfitters Holdings
has a total score of
2/6, 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
China Outfitters Holdings's finances.
The net worth of a company is the difference between its assets and liabilities.
China Outfitters Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
China Outfitters Holdings's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
China Outfitters Holdings'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.
China Outfitters Holdings has no debt, it does not need to be 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. Yongli Zhang has been the Chief Executive Officer of China Outfitters Holdings Limited since June 8, 2011 and has been its Chairman since June 22, 2018. Mr. Zhang serves as an Assistant of the Navy Shanghai Base, the office director of Shenzhen Yanshan Industry Trading Co., Ltd., General Manager of Haikou Lanyuan Corporation Company, Vice General Manager of Guangdong Baoli South Import and Export Company. Mr. Zhang is in charge of general manager of Guangdong Liwei Dressing Co., Ltd., Chairman of the Board of Shanghai Baodewei Apparel Co., Ltd. and Dezhou Zhonghe Garments Co., Ltd., legal representative, executive director and manager of Beijing Baodewei Apparel Co., Ltd., director and general manager of Guangzhou Ruitang Trade Co., Ltd. and Guangzhou Ruicheng Trade Co., Ltd., supervisor of Sichuan Baodewei Trading Co., Ltd. and Shanghai Jiancheng Trading Co., Ltd. He served as Vice President of Guangdong Rieys Group Co. Ltd. Mr. Zhang has been an Executive Director of China Outfitters Holdings Limited since June 8, 2011. Mr. Zhang served as a Director of Guangdong Rieys until May 2009. He graduated from Naval Engineering Institute.
Yongli's compensation has been consistent with company performance over the past year, both up more than 20%.
Yongli's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
China Outfitters Holdings
management team in years:
The average tenure for the China Outfitters Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.
China Outfitters Holdings Limited, an investment holding company, designs, manufactures, markets, and sells apparels and accessories in the People’s Republic of China. It offers men's casual wear, including smart casual wear, outdoor casual wear, leisure wear, and accessories under licensed and self-owned brands targeting consumers in the mid-to-high income bracket. The company also offers womenswear. Its licensed brands include Barbour, Jeep, Santa Barbara Polo & Racquet Club, Maxim's, Sideout, and Koyo Jeans; self-owned brands comprise Artful Dodger, Doright, London Fog, Zoo York, and MCS; and joint venture brands include Henry Cotton's, Marina Yachting, LINCS, and Manhattan. In addition, it develops, operates, and manages properties; and sells software products. As of December 31, 2018, the company’s sales network included 576 self-operated retail points and 290 retail points operated by third-party retailers. The company was founded in 2000 and is headquartered in Shanghai, the People’s Republic of China.
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