Discounted Cash Flow Calculation for DB:8SF using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Sligro Food Group
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:8SF DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
Sligro Food Group
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
Sligro Food Group
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Sligro Food Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
Sligro Food 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
Sligro Food Group's
is considered below, and whether this is a fair price.
Price based on past earnings
Sligro Food Group's earnings available for a low price, and how does
this compare to other companies in the same industry?
Sligro Food Group's earnings are expected to grow significantly at over 20% yearly.
Sligro Food Group's revenue is expected to grow by 2.7% yearly, however this is not considered high growth (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.
Sligro Food 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.
Sligro Food Group
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
Sligro Food Group's finances.
The net worth of a company is the difference between its assets and liabilities.
Sligro Food Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Sligro Food Group's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Sligro Food Group'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 2.7x 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
Mr. Koen M. Slippens has been the Chairman of the Executive Board at Sligro Food Group NV. since September 21, 2008 and serves as Chief Executive Officer. Mr. Slippens serves as a Member of Executive Board at Sligro Food Group NV and its subsidiary, Sligro Food Group Nederland B V. Mr. Slippens serves as a Member of the Executive Board of Sligro Beheer N.V. He serves as Chief Executive Officer of Sligro Food Group NV. He serves as an Executive Officer of Sligro Food Group Nederland. He serves as a Director of Sligro Food Group Nederland B.V.
Koen's compensation has been consistent with company performance over the past year.
Koen's remuneration is lower than average for companies of similar size in Germany.
CEO & Chairman of the Executive Board
R. W. A. van der Sluijs
CFO & Member of Executive Board
J. van Heereveld
Head of Accounting
P. van der Veen
Manager of Information & Technology Office
G. J. C. van der Veeken
Company Secretary & Compliance Officer
Head of Internal & External Communication
Head of Building Works
A. de Rooij
Head of Purchasing & Product Range Management - Fresh Produce
Head of Purchase Planning Department
Board of Directors Tenure
Average tenure and age of the
Sligro Food Group
board of directors in years:
The tenure for the Sligro Food Group board of directors is about average.
Sligro Food Group N.V. engages in the foodservice businesses in the Netherlands and Belgium. The company offers approximately 75,000 food and food-related non-food items; and services in the food and beverages wholesale market. It operates a network of 50 cash-and-carry and 8 delivery service outlets to serve hospitality establishments, leisure facilities, volume users, company and other caterers, forecourt retailers, small and medium-sized enterprises, retail businesses, and institutional market; and 13 Heineken wholesale sites that provide draught beers, as well as serves institutional market under the Van Hoeckel name and other markets under the Sligro name in the Netherlands. It also serves institutional, company catering, and hotel chain segments under the JAVA Foodservice name; catering sector and professionals in gastronomy under the ISPC name; and hospitality markets under the Sligro-ISPC name through a network of 2 cash-and-carry outlets, 1 delivery service and collection site, and 1 delivery-service outlet, as well as delivery from the Netherlands in Belgium. In addition, the company produces convenience products, fresh fish, crustaceans and shellfish, patisseries, and home caterer products; meat, game and poultry, fruits and vegetables, and bread and bakery products; and Christmas gifts. Further, it is involved in the professional kitchens activity. The company also sells its products through an online platform. Sligro Food Group N.V. was founded in 1935 and is headquartered in Veghel, the Netherlands.
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