Discounted Cash Flow Calculation for SEHK:1131 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.
SEHK:1131 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.
Agritrade Resources's share price is below the future cash flow value, and at a moderate discount (> 20%).
Agritrade Resources'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
Agritrade Resources's earnings available for a low price, and how does
this compare to other companies in the same industry?
Agritrade Resources's earnings are expected to grow by 19.4% yearly, however this is not considered high growth (20% yearly).
Agritrade Resources's revenue is expected to grow by 19.6% 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.
Agritrade Resources'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
Oil and Gas
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.
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
Agritrade Resources's finances.
The net worth of a company is the difference between its assets and liabilities.
Agritrade Resources is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Agritrade Resources's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Agritrade Resources'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 3.3x 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. Xinwei Ng has been the Chief Executive Officer of Agritrade Resources Limited since August 21, 2013. Mr. Ng served as Chief Operating Officer of Agritrade Resources Limited from October 7, 2010 to August 21, 2013. He joined Agritrade in 2004 and focuses in the trading operation of palm oil and coal, shipping logistic management and commodities related investments. He has been an Executive Director of Agritrade Resources Limited since August 24, 2010. He serves as an Executive Director of Agritrade International Pte. Ltd. He serves as a Director of Rimau Shipping Pte Limited and a commissioner of Rimau Indonesia. Mr. Ng has Bachelor Degree in the National University of Singapore.
Xinwei's compensation has been consistent with company performance over the past year, both up more than 20%.
Xinwei's remuneration is about average for companies of similar size in Hong Kong.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the Agritrade Resources management team is over 5 years, this suggests they are a seasoned and experienced team.
CEO & Executive Director
Ashok Kumar Sahoo
CFO & Executive Director
Chief Operating Officer
Chief Marketing Officer
Head of Mining Operations - PT Senemas Energinbo Mineral
Managing Director of Sea Oriental Line Pte Ltd
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Agritrade Resources board of directors is about average.
What Kind Of Shareholders Own Agritrade Resources Limited (HKG:1131)?
See our latest analysis for Agritrade Resources SEHK:1131 Ownership Summary, May 14th 2019 What Does The Institutional Ownership Tell Us About Agritrade Resources? … Insider Ownership Of Agritrade Resources The definition of an insider can differ slightly between different countries, but members of the board of directors always count. … Private Company Ownership We can see that Private Companies own 56%, of the shares on issue.
Does Agritrade Resources Limited's (HKG:1131) Stock Price Account For Its Growth?
Help shape the future of investing tools and you could win a $250 gift card! … Agritrade Resources Limited (HKG:1131) is considered a high-growth stock, but its last closing price of HK$1.27 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … Agritrade Resources is poised for extremely high earnings growth in the near future
Do Agritrade Resources's (HKG:1131) Earnings Warrant Your Attention?
So if you're like me, you might be more interested in profitable, growing companies, like Agritrade Resources (HKG:1131). … Agritrade Resources's Earnings Per Share Are Growing. … Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS.
Why Agritrade Resources Limited (HKG:1131) Is An Attractive Investment To Consider
Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Agritrade Resources Limited (HKG:1131) due to its excellent fundamentals in more than one area. … For those interested in understanding where the figures come from and want to see the analysis,
Don't Sell Agritrade Resources Limited (HKG:1131) Before You Read This
To keep it practical, we'll show how Agritrade Resources Limited's (HKG:1131) P/E ratio could help you assess the value on offer. … Based on the last twelve months, Agritrade Resources's P/E ratio is 19.07. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Does Agritrade Resources Limited's (HKG:1131) CEO Salary Compare Well With Others?
First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Xinwei Ng's Compensation Compare With Similar Sized Companies. … According to our data, Agritrade Resources Limited has a market capitalization of HK$8.2b, and pays its CEO total annual compensation worth HK$2.7m.
Is Agritrade Resources Limited's (HKG:1131) 11% ROE Strong Compared To Its Industry?
Our data shows Agritrade Resources has a return on equity of 11% for the last year. … That means that for every HK$1 worth of shareholders' equity, it generated HK$0.11 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Shareholders Are Raving About How The Agritrade Resources Share Price Increased 825%
By comparing earnings per share (EPS) and and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Over half a decade, Agritrade Resources managed to grow its earnings per share at 33% a year. … This EPS growth is slower than the share price growth of 56% per year, over the same period.
Is Agritrade Resources Limited’s (HKG:1131) Return On Capital Employed 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. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
How Does Investing In Agritrade Resources Limited (HKG:1131) Impact The Volatility Of Your Portfolio?
In finance, Beta is a measure of volatility. … Volatility is considered to be a measure of risk in modern finance theory. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility).
Agritrade Resources Limited, an investment holding company, engages in the mining, exploration, logistics, and sale of coal primarily in Asia. It operates through Mining, Shipping, and Energy segments. The company produces and sells sub-bituminous, low-sulphur, and low-pollutant thermal coal; and engages in other mining-related activities. It owns and operates the PT Senamas Energindo Mineral (SEM) coal mine covering approximately 2,000 hectares located in Central Kalimantan; and the Rantau Nangka underground coal mine covering 3,663 hectares located in South Kalimantan, as well as operates the Bunda Kandung mine located in Central Kalimantan, Indonesia under mining contracts. The company also provides maritime transportation and storage solutions, shipping freight management services, and floating storage and relevant logistics services for crude oil and petrochemical products. In addition, it engages in the trading, sales, and marketing of coal; provision of administrative and logistics services; operation of biodiesel plant in Arkansas, the United States; and production, generation, provision, and sale of fuel and energy, as well as other energy-related operations. Agritrade Resources Limited operates through an own fleet of three sets of very large crude carrier vessels; one set of panamax-grade vessel; and six sets of tugboats and barges. The company was founded in 1991 and is headquartered in Wanchai, Hong Kong. Agritrade Resources Limited is a subsidiary of Agritrade International Pte. Limited.
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