Electrocomponents plc, together with its subsidiaries, distributes various electronics and industrial products in Northern Europe, Southern Europe, Central Europe, the Asia Pacific, and the Americas.
The last earnings update was 153 days ago.
Discounted Cash Flow Calculation for DB:ECN 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:ECN 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.
Electrocomponents's share price is below the future cash flow value, but not at a moderate discount (< 20%).
Electrocomponents's share price is below the future cash flow value, but not 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
Electrocomponents's earnings available for a low price, and how does
this compare to other companies in the same industry?
Electrocomponents's earnings are expected to grow by 9.4% yearly, however this is not considered high growth (20% yearly).
Electrocomponents'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.
Electrocomponents'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
6/6, 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.
Electrocomponents is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Electrocomponents's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Electrocomponents'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 3.4x 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. Lindsley Ruth has been the Chief Executive Officer of Electrocomponents plc since April 1, 2015. He joined Electrocomponents plc in April 2015. Mr. Ruth serves as Chief Executive Officer of Allied Electronics, Inc. Mr. Ruth served as an Executive Vice President of the Future Electronics Group of companies. He has been with Future since 2002 and a key member of its core leadership team which has transformed the performance and expanded its global reach over recent years. He previously held senior positions with TTI Inc. and Solectron Corporation. He has been a Director at Electrocomponents plc since April 1, 2015. He has both a BSc in Engineering (Industrial Distribution) and a Master’s in Business Administration from Texas A&M University.
Hi Skills and experience include:
• Mergers and acquisitions
• International operations
• Emerging markets
• Sales and marketing
• Supply chain and procurement
Lindsley's compensation has increased by more than 20% in the past year.
Lindsley'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 Electrocomponents management team is less than 2 years, this suggests a new team.
CEO & Director
Group Finance Director & Director
Chief Digital Data & Technology Officer
Head of Investor Relations and Corporate PR
Head of Corporate Public Relations
Senior Vice President of Corporate Development
President Group Professional Services & People & Company Secretary
Senior Vice President of Operational Excellence
President of Asia Pacific - RS Components
President of EMEA - RS Components
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Electrocomponents board of directors is about average.
Electrocomponents plc, together with its subsidiaries, distributes various electronics and industrial products in Northern Europe, Southern Europe, Central Europe, the Asia Pacific, and the Americas. The company distributes semiconductor products, including microcontrollers, voltage regulators, transistors, and diodes; and interconnectors, passives, and electromechanical components, such as resistors, switches, and heavy-duty connectors for industrial applications and power supplies. It also provides automation and control products comprising programmable logic controllers, safety devices, sensors, cables, and pneumatic cylinders for the food and beverage, packaging, manufacturing, marine, and oil and gas industries; and tools and consumables consisting of electronics workbench equipment, electrostatic discharge products and 3D printers, and mechanical tools and lighting products, as well as electrical, test and measurement, and safety equipment. The company markets its products through digital channels, trade counters, phone/fax lines, field and internal sales under the RS Components, Allied Electronics & Automation, and RS Pro brands to electronic design engineers, machine and panel builders, and maintenance engineers, as well as buyers. In addition, it operates DesignSpark, an online electronics design community and resource center for manufacturers, students, and design engineers. The company was founded in 1928 and is headquartered in London, the United Kingdom.
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