Discounted Cash Flow Calculation for DB:64B 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.
DB:64B 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
Bojangles''s earnings available for a low price, and how does
this compare to other companies in the same industry?
Bojangles''s earnings are expected to grow by 10.6% yearly, however this is not considered high growth (20% yearly).
Bojangles''s revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
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.
Bojangles''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
5/6, 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. James Randy Kibler is Interim Chief Executive Officer and Interim President at Bojangles', Inc. since March 2018. Mr. Kibler served as the Non-Executive Chairman of Bojangles', Inc. and Restaurants since February 2014 until June 2016. Mr. Kibler served as the Chief Executive Officer at Bojangles', Inc. from July 2013 to January 24, 2014 and also served as its President from September 2011 to January 24, 2014. From September 1996 to April 2011, Mr. Kibler served as President of Kibler-Mitchell Enterprises, Inc. He has been a Partner in companies that served as developers and area representatives for Firehouse Restaurant Group Inc., the franchisor of Firehouse Subs restaurants, since 2002. He has 40 year of food service experience. He began his career in 1970 as an hourly employee of Richardson's Spartan Foods at a Hardee's in Columbia, S.C. He spent 26 years working with Richardson at Spartan Foods and later Flagstar Cos. Inc., where Mr. Kibler served as Senior Vice President as well as President and Chief Operating Officer of the 600-restaurant Hardee's division, at the time the largest franchise restaurant chain in the U.S. His tenure at Flagstar also included additional responsibilities as President and Chief Operating Officer of Quincy's Family Steakhouse and Vice President of the western division of Denny's. He has been a Director of Bojangles', Inc. since August 2011. From September 2007 to January 2014, he served as Director of Restaurants.
James's compensation has been consistent with company performance over the past year.
James's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Bojangles' management team is about average.
Senior VP of Finance
VP, Compliance Officer
Senior Vice President of Marketing
Senior Vice President of Human Resources
Chief of Staff & VP
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Bojangles' board of directors is about average.
Bojangles', Inc. develops, operates, and franchises limited service restaurants in the United States. Its restaurants offer made-from-scratch biscuit breakfast sandwiches, hand-breaded bone-in chicken, fixin’s, and iced tea. As of July 1, 2018, the company operated 766 system-wide restaurants, including 325 company-operated and 441 franchised restaurants primarily located in the Southeastern United States. Bojangles', Inc. was founded in 1977 and is headquartered in Charlotte, North Carolina.
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