Aerohive Networks, Inc., together with its subsidiaries, designs and develops cloud networking and enterprise Wi-Fi solutions in the Americas, Europe, the Middle East and Africa, and the Asia Pacific.
The last earnings update was 49 days ago.
Discounted Cash Flow Calculation for DB:2NW 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:2NW DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Aerohive Networks's share price is below the future cash flow value, and at a moderate discount (> 20%).
Aerohive Networks'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
is considered below, and whether this is a fair price.
Price based on past earnings
Aerohive Networks's earnings available for a low price, and how does
this compare to other companies in the same industry?
Aerohive Networks is not considered high growth as it is expected to be loss making for the next 1-3 years.
Aerohive Networks's revenue is expected to grow by 4.5% 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.
Aerohive Networks'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
Aerohive Networks's finances.
The net worth of a company is the difference between its assets and liabilities.
Aerohive Networks is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Aerohive Networks's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Aerohive Networks'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.
Debt is covered by short term assets, assets are 6.5x 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. David K. Flynn has been the Chief Executive Officer, President and Chairman of Aerohive Networks, Inc. since July 2007, November 2007 and July 2013 respectively. Mr. Flynn has more than 15 years experience in the networking and security industries working with both software and hardware products. He served as the Vice President of Marketing of NetScreen Technologies Inc. from June 1999 to 2004. Mr. Flynn served in various marketing and product management positions at 3Com Corporation, from 1991 to April 1999, which is a computer network equipment manufacturer, where he served as the Vice President of Marketing for the architecture and software operation. He served as Vice President of Products for the Security Products Group at Juniper Networks. Mr. Flynn has been a Director of Aerohive Networks, Inc. since July 2006. He serves as a Member of The Advisory Board at Talari Networks, Inc. He served as a Director of MU Dynamics, Inc. Mr. Flynn holds a B.A. in Economics from Williams College and an MBA from the Stanford Graduate School of Business.
David's compensation has been consistent with company performance over the past year.
David'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 tenure for the Aerohive Networks management team is about average.
Senior VP and GM of Products & Sales
Manager of Corporate Communications
Vice President of Marketing
Corporate Vice President of Human Resources & Real Estate
Vice President of Global Channels
Vice President of Americas Sales
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Aerohive Networks board of directors is about average.
Aerohive Networks, Inc., together with its subsidiaries, designs and develops cloud networking and enterprise Wi-Fi solutions in the Americas, Europe, the Middle East and Africa, and the Asia Pacific. The company provides hardware products, such as wireless access points, branch routers, and switches; tiered maintenance and support services comprising technical support, bug fixes, access to priority hardware replacement service, and unspecified upgrades; and Software as a Service subscriptions, including comparable maintenance and support services. Its cloud-based product comprises HiveManager, a network management application that features an updated user interface, improved troubleshooting, and expanded access to data and analytics, as well as an upgraded cloud-deployment platform. The company sells its products to industry verticals, including education, distributed enterprises, retail, hospitality, and healthcare through a network of authorized distributors, value-added resellers, and managed service providers. Aerohive Networks, Inc. was incorporated in 2006 and is headquartered in Milpitas, California.
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