Discounted Cash Flow Calculation for DB:FWC 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.
DB:FWC DCF 1st Stage: Next 10 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
1-800-FLOWERS.COM's earnings available for a low price, and how does
this compare to other companies in the same industry?
1-800-FLOWERS.COM's earnings are expected to grow by 15.5% yearly, however this is not considered high growth (20% yearly).
1-800-FLOWERS.COM's revenue is expected to grow by 5.6% 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.
1-800-FLOWERS.COM'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
1/6, 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
The net worth of a company is the difference between its assets and liabilities.
1-800-FLOWERS.COM is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
1-800-FLOWERS.COM's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
1-800-FLOWERS.COM'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 3.3x 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. Christopher G. McCann, also known as Chris, has been the President of 1-800-FLOWERS.COM, Inc. since September 2000 and its Chief Executive Officer since June 30, 2016. Mr. McCann served as the President of the Consumer Floral Brand at 1-800-FLOWERS.COM from July 2010 until October 2013. He is responsible for overseeing operations of its tele centers and franchised stores and for its Interactive Services Division. From 1988 to September 2000, he served as Senior Vice President of 1-800-FLOWERS.COM. He has been a Director of 1-800-FLOWERS.COM since 1976. Prior to his association with 1-800-FLOWERS.COM, Mr. McCann served as President of Flora Plenty. He is a Member of E-Commerce Advisory Board at DreamIt Ventures. He is the Vice Chairman of the Board of Directors of IGHL. He is the Vice Chairman of the Board of Trustees and a Trustee of Marist College. He served as Director of Neoware, Inc. since December 1998. Mr. McCann served as a Director of Bluefly Inc., from February 22, 2005 to February 2009.
Chris's compensation has been consistent with company performance over the past year, both up more than 20%.
Chris's remuneration is about average for companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the 1-800-FLOWERS.COM management team is over 5 years, this suggests they are a seasoned and experienced team.
Founder & Executive Chairman
CEO, President & Director
Senior Vice President of Business Affairs
President of Consumer Floral Brands
Senior VP & Chief Information Officer
Senior Vice President of Investor Relations & Corporate Communications
Chief Marketing Officer
Senior Vice President of Human Resources
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the 1-800-FLOWERS.COM board of directors is about average.
1-800-FLOWERS.COM, Inc., together with its subsidiaries, provides gourmet food and floral gifts for various occasions in the United States. It operates in three segments: Consumer Floral; Gourmet Foods & Gift Baskets; and BloomNet Wire Service. The company offers a range of products, including fresh-cut flowers, floral and fruit arrangements and plants, gifts, popcorn, gourmet foods and gift baskets, cookies, chocolates, candies, wine, and gift-quality fruits, as well as balloons, candles, keepsake gifts, jewelry, and plush stuffed animals. It also provides floral wire service through BloomNet brand; gourmet gifts, such as fruits and other gourmet items through Harry & David brand; popcorn and specialty treats through The Popcorn Factory and Moose Munch brands; cookies and baked gifts from Cheryl’s brand; gift baskets and towers from 1800baskets.com and DesignPac Gifts; English muffins and other breakfast treats from Wolferman’s brand; artisan chocolate and confections from Simply Chocolate brand; carved fresh fruit arrangements from fruitbouquets.com; and steaks and chops from stockyards brand; and other from Personalization Universe and GoodseySM brands. The company offers its products to consumers and wholesalers. 1-800-FLOWERS.COM, Inc. was founded in 1976 and is headquartered in Carle Place, New York.
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