Discounted Cash Flow Calculation for CPSE:MTHH using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
MT Højgaard Holding
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.
CPSE:MTHH DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
MT Højgaard Holding
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
MT Højgaard Holding's
is considered below, and whether this is a fair price.
Price based on past earnings
MT Højgaard Holding's earnings available for a low price, and how does
this compare to other companies in the same industry?
MT Højgaard Holding's earnings are expected to grow significantly at over 20% yearly.
MT Højgaard Holding's revenue is expected to grow significantly at over 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.
MT Højgaard Holding'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.
MT Højgaard Holding
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
MT Højgaard Holding's finances.
The net worth of a company is the difference between its assets and liabilities.
MT Højgaard Holding is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
MT Højgaard Holding's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
MT Højgaard Holding'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 not covered by short term assets, assets are 0.4x 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. Anders Heine Jensen has been President, Chief Executive Officer & Member of Executive Board at MT Højgaard A/S since November 1, 2018. He has been President, Chief Executive Officer & Member of Executive Board at Højgaard Holding A/S since February 7, 2019. He has been President and Chief Executive Officer of MTH GROUP since December 1, 2018. He has been Chief Executive Officer of Burmeister & Wain Scandinavian Contractor A/S since 2011. Mr. Heine served as DONG Energy and A.P. Møller-Mærsk. His special expertise is in infrastructure projects, management, strategy and project finance and he has solid experience from energy and contracting companies. Mr. Heine served as Chairman of Monberg & Thorsen A/S. from 2017 to 2018 and serves as its Director since April 2017. Mr. Anders Heine Jensen served as Deputy Chairman at Mt Højgaard A/S until October 31, 2018. He served as Vice Chairman and Director at Mt Højgaard A/S from December 16, 2015 to March 16, 2017. He has been Director of Haldor Topsøe A/S since December 16, 2015. He serves as Director of DI Energy. He is a member of the International Market Committee of the Confederation of Danish Industry (DI). Mr. Jensen holds M.Sc. in Mechanical Engineering from DTU and an HD in International Business from CBS form 1986 to 1998.
Insufficient data for Anders to compare compensation growth.
Insufficient data for Anders to establish whether their remuneration is reasonable compared to companies of similar size in Denmark.
CFO & Member of Executive Board
Vice President of Communications and Human Resources
Board of Directors Tenure
Average tenure and age of the
MT Højgaard Holding
board of directors in years:
The average tenure for the MT Højgaard Holding board of directors is less than 3 years, this suggests a new board.
The MT Højgaard Holding (CPH:MTHH) Share Price Is Down 78% So Some Shareholders Are Rather Upset
MT Højgaard Holding isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). … In the last three years MT Højgaard Holding saw its revenue shrink by 4.2% per year. … The share price fall of 40% (per year, over three years) is a stern reminder that money-losing companies are expected to grow revenue.
MT Højgaard Holding A/S operates in the construction and civil engineering industry in Denmark, the North Atlantic countries, and internationally. The company develops, constructs, and refurbishes buildings on a main, design-build, or subcontract basis for private and public customers, organizations, and housing associations. It also undertakes infrastructure projects, earthworks and piling, marine works, and shell construction. The company, formerly known as Højgaard Holding A/S, is based in Søborg, Denmark.
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