Discounted Cash Flow Calculation for AIM:NUC using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Nucleus Financial Group
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.
AIM:NUC DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
Nucleus Financial Group
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
Nucleus Financial Group's
is considered below, and whether this is a fair price.
Price based on past earnings
Nucleus Financial Group's earnings available for a low price, and how does
this compare to other companies in the same industry?
Nucleus Financial Group's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Nucleus Financial Group's revenue is expected to grow by 6.3% 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.
Nucleus Financial Group'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.
Nucleus Financial Group
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
Nucleus Financial Group's finances.
The net worth of a company is the difference between its assets and liabilities.
Nucleus Financial Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Nucleus Financial Group's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Nucleus Financial Group'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 310.8x 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.
Mr. David Ritchie Ferguson is the Founder of Nucleus Financial Services Limited and has been its Chief Executive Officer since July 2006. Mr. Ferguson serves as Chief Executive of Nucleus Corporation. In 1998, he concluded that the industry was more 1980s than 2020s and embarked on a mission to create the UK’s first genuinely collaborative platform, which resulted in the creation of Nucleus in 2006. He remains immensely proud to lead the small team that has put the client centre stage to make Nucleus a credible and refreshing market participant. Mr. Ferguson is a technology geeky from a very early age, the formative years of his career were spent as a Trainee Actuary with Life Association of Scotland, Ivory & Sime, Scottish Life International and strategic consultancy The Abacus.
Insufficient data for David to compare compensation growth.
Insufficient data for David to establish whether their remuneration is reasonable compared to companies of similar size in United Kingdom of Great Britain and Northern Ireland.
CFO & Executive Director
Chief Operating Officer
Chief Technology Officer
Chief Legal Officer & Company Secretary
Head of Sales
Chief People Officer
Chief Customer Officer
Board of Directors Tenure
Average tenure and age of the
Nucleus Financial Group
board of directors in years:
The average tenure for the Nucleus Financial Group board of directors is less than 3 years, this suggests a new board.
Here's How We Evaluate Nucleus Financial Group Plc's (LON:NUC) Dividend
Some readers mightn't know much about Nucleus Financial Group's 2.3% dividend, as it has only been paying distributions for a year or so. … While the above analysis focuses on dividends relative to a company's earnings, we do note Nucleus Financial Group's strong net cash position, which will let it pay larger dividends for a time, should it choose. … However, it's also important to assess if earnings per share (EPS) are growing. Over the long term, dividends need to grow at or above the rate of inflation, in order to maintain the recipient's purchasing power. It's good to see Nucleus Financial Group has been growing its earnings per share at 25% a year over the past 5 years. Nucleus Financial Group earnings have been growing very quickly recently, but given that it is paying out more than half of its earnings, we wonder if it will have enough capital to fund further growth in the future. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.
Need To Know: Nucleus Financial Group Plc (LON:NUC) Insiders Have Been Buying Shares
So we'll take a look at whether insiders have been buying or selling shares in Nucleus Financial Group Plc (LON:NUC). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … Nucleus Financial Group Insider Transactions Over The Last Year.
Why You Should Like Nucleus Financial Group Plc’s (LON:NUC) ROCE
Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.
Does Nucleus Financial Group Plc's (LON:NUC) P/E Ratio Signal A Buying Opportunity?
We'll show how you can use Nucleus Financial Group Plc's (LON:NUC) P/E ratio to inform your assessment of the investment opportunity. … Nucleus Financial Group has a P/E ratio of 21.82, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Who Has Been Buying Nucleus Financial Group Plc (LON:NUC) Shares?
So shareholders might well want to know whether insiders have been buying or selling shares in Nucleus Financial Group Plc (LON:NUC). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … Nucleus Financial Group Insider Transactions Over The Last Year.
Boasting A 33% Return On Equity, Is Nucleus Financial Group Plc (LON:NUC) A Top Quality Stock?
Nucleus Financial Group has a ROE of 33%, based on the last twelve months. … One way to conceptualize this, is that for each £1 of shareholders' equity it has, the company made £0.33 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Is Nucleus Financial Group Plc (LON:NUC) A Smart Choice For Dividend Investors?
A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. … Nucleus Financial Group Plc (LON:NUC) has begun paying dividends recently. … View our latest analysis for Nucleus Financial Group
What Does Nucleus Financial Group Plc's (LON:NUC) PE Ratio Tell You?
Nucleus Financial Group Plc (LON:NUC) is currently trading at a trailing P/E of 26.1, which is close to the industry average of 26.1. … Although some investors might think this is a real positive, that might change once you understand the assumptions behind the P/E. … View our latest analysis for Nucleus Financial Group
Nucleus Financial Group Limited's (LON:NUC) Earnings Grew 21.38%, Did It Beat Long-Term Trend?
After reading Nucleus Financial Group Limited's (LON:NUC) most recent earnings announcement (31 December 2017), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … Check out our latest analysis for Nucleus Financial Group. … NUC's trailing twelve-month earnings (from 31 December 2017) of UK£4.11m has
Nucleus Financial Group Plc operates an online wrap platform for the financial services industry. The company’s wrap platform offers adviser users custody, trading, payment, reporting, fee-handling, research, and integration services across an open architecture universe, including cash, OEICs, unit trusts, offshore funds, structured products and listed securities, and investment trusts through a range of tax wrappers. It also operates Narrate, a portfolio reporting tool. The company was founded in 2006 and is headquartered in Edinburgh, the United Kingdom.
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