Discounted Cash Flow Calculation for ENXTPA:MDM using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Maisons du Monde
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.
ENXTPA:MDM DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
Maisons du Monde
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
Maisons du Monde
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Maisons du Monde's share price is below the future cash flow value, and at a moderate discount (> 20%).
Maisons du Monde'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
Maisons du Monde's
is considered below, and whether this is a fair price.
Price based on past earnings
Maisons du Monde's earnings available for a low price, and how does
this compare to other companies in the same industry?
Maisons du Monde's earnings are expected to grow by 14.6% yearly, however this is not considered high growth (20% yearly).
Maisons du Monde's revenue is expected to grow by 8.9% 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.
Maisons du Monde'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.
Maisons du Monde
has a total score of
3/6, 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
Maisons du Monde's finances.
The net worth of a company is the difference between its assets and liabilities.
Maisons du Monde is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Maisons du Monde's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Maisons du Monde'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 1.6x 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
Ms. Julie Walbaum is the Chief Executive Officer of Maisons du Monde S.A. since July 1, 2018. She served as Managing Director of E-Commerce & Customer Marketing at Maisons du Monde SAS and served as its Head of E-Commerce & Customer Marketing.
Insufficient data for Julie to compare compensation growth.
Insufficient data for Julie to establish whether their remuneration is reasonable compared to companies of similar size in France.
Chief Executive Officer
Chief Financial Officer
Head of Investor Relations
Human Resources Director
Head of Franchising & BtoB Sales and Company Secretary
Brand Managing Director
Board of Directors Tenure
Average tenure and age of the
Maisons du Monde
board of directors in years:
The average tenure for the Maisons du Monde board of directors is less than 3 years, this suggests a new board.
Imagine Owning Maisons du Monde (EPA:MDM) And Wondering If The 35% Share Price Slide Is Justified
But that is minimal compensation for the share price under-performance over the last year. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Even though the Maisons du Monde share price is down over the year, its EPS actually improved.
What Kind Of Investor Owns Most Of Maisons du Monde S.A. (EPA:MDM)?
Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Maisons du Monde has a market capitalization of €1.1b, so we would expect some institutional investors to have noticed the stock. … institutional investors have bought into the company.
Is Maisons du Monde S.A.’s (EPA:MDM) 12% ROCE Any Good?
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.
What Is Maisons du Monde S.A.'s (EPA:MDM) Share Price Doing?
received a lot of attention from a substantial price increase on the ENXTPA over the last few months. … With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … However, could the stock still be trading at a relatively cheap price
Is Maisons du Monde S.A. (EPA:MDM) An Attractive Dividend Stock?
A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … In the last few years Maisons du Monde S.A. … Let's take a look at Maisons du Monde in more detail.
Is Maisons du Monde S.A.'s (EPA:MDM) High P/E Ratio A Problem For Investors?
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll show how you can use Maisons du Monde S.A.'s (EPA:MDM) P/E ratio to inform your assessment of the investment opportunity. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
I will take you through Maisons du Monde’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … Maisons du Monde generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating. … There are two methods I will use to evaluate the quality of Maisons du Monde’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability
Is Maisons du Monde S.A.'s (EPA:MDM) Balance Sheet Strong Enough To Weather A Storm?
While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Companies operating in the Specialty Retail industry facing headwinds from current disruption,. … So, understanding the company's financial health becomes
Is Maisons du Monde S.A.'s (EPA:MDM) Growth Strong Enough To Justify Its December Share Price?
(EPA:MDM) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of €17.64 is based on unrealistic expectations. … Check out our latest analysis for Maisons du Monde? … Investors in Maisons du Monde have been patiently waiting for the uptick in earnings.
Could The Maisons du Monde SA (EPA:MDM) Ownership Structure Tell Us Something Useful?
Every investor in Maisons du Monde SA (EPA:MDM) should be aware of the most powerful shareholder groups. … Conversely, insiders often decrease their ownership over time. … We can zoom in on the different ownership groups, to learn more about MDM
Maisons du Monde S.A., through its subsidiaries, creates and distributes decoration items and furniture in France and internationally. The company’s decorative products include bedding, rugs and mats, candles, pillows and cushions, clocks, tableware, lamps, kitchenware, mirrors and frames, vases, storage articles, window treatments, and bath products, as well as household textiles; and baby crib mobiles, lamps, storage containers, and wall art for children. It also provides furniture, such as sofas, chairs, beds, mattresses and bedframes, floor lamps, tables, outdoor furniture, and junior furniture; and tables and storage units comprising bookshelves, wardrobes, and cupboards. In addition, the company offers warehouse logistics and order preparation, and customer delivery services, as well as container transport services between harbor and warehouses. As of January 22, 2019, it operated 313 stores; and an online shopping Website in France, Italy, Spain, Belgium, Germany, Switzerland, and Luxembourg, as well as Austria, the Netherlands, Portugal, and the United Kingdom. The company also offers its products through 3 catalogues. It provides its products under the Maisons du Monde brand. The company was formerly known as Magnolia (BC) SAS. Maisons du Monde S.A. founded in 1996 and is headquartered in Vertou, France.
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