PCM, Inc., through its subsidiaries, operates as a multi-vendor provider of technology products and solutions in the United States and the rest of Europe.
The last earnings update was 39 days ago.
Discounted Cash Flow Calculation for DB:CVR 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:CVR 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.
PCM's share price is below the future cash flow value, and at a moderate discount (> 20%).
PCM'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
PCM's earnings available for a low price, and how does
this compare to other companies in the same industry?
PCM's earnings are expected to grow by 17.4% yearly, however this is not considered high growth (20% yearly).
PCM's revenue is expected to grow by 2.3% 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.
PCM'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
4/6, 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. Frank F. Khulusi co-founded PCM, Inc. in 1987 and has been its Chairman and Chief Executive Officer since 1987 and is intimately involved in its day-to-day operations. Mr. Khulusi’s areas of relevant experience, qualifications, attributes or skills include extensive knowledge of the IT direct marketing and solutions industries, over 30 years of experience in leadership and growth of PCM, Inc., extensive operations and financial experience and experience with public company corporate governance. Mr. Khulusi served as the President of PCM, Inc. from March 2001 to March 2012 and previously from 1987 to July 1999. From July 1999 to September 1999, he served as President of Toytime Inc. He served as the President of Enable Holdings, Inc. until November 1997 and Chairman of the Board since its incorporation until July 1998. He served as a Director of Enable Holdings, Inc. since 1997. Mr. Khulusi attended the University of Southern California.
Frank's compensation has been consistent with company performance over the past year.
Frank's remuneration is higher than 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 PCM management team is over 5 years, this suggests they are a seasoned and experienced team.
Executive VP of Information Technology & Operations
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the PCM board of directors is over 10 years, this suggests they are a seasoned and experienced board.
PCM, Inc., through its subsidiaries, operates as a multi-vendor provider of technology products and solutions in the United States and the rest of Europe. The company operates through four segments: Commercial, Public Sector, Canada, and United Kingdom. It primarily sells device products, servers, storage products, network products, printers, and related accessories and devices. The company also provides managed services, cloud-based services, consulting, IT management and other IT services, and technical certifications and operational expertise in various practice areas; and selection, implementation, and IT solutions comprising security, virtualization, data services, unified communications, and infrastructure, as well as software asset management and software value-added reseller services. PCM, Inc. markets its products, services, and solutions to individuals; commercial businesses; state, local, and federal governments; and educational institutions through its sales force, e-commerce channels, and technology services teams, as well as cloud data centers, field services organizations, and online extranets. The company was formerly known as PC Mall, Inc. and changed its name to PCM, Inc. in December 2012. PCM, Inc. was founded in 1987 and is headquartered in El Segundo, California.
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