Discounted Cash Flow Calculation for SEHK:1075 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 use
analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
SEHK:1075 DCF 1st Stage: Next 5 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.
Capinfo's share price is below the future cash flow value, and at a moderate discount (> 20%).
Capinfo'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
Capinfo's earnings available for a low price, and how does
this compare to other companies in the same industry?
Capinfo's earnings are expected to grow by 15.3% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Capinfo is high growth as no revenue estimate data is available.
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.
Capinfo'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
2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
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. Donghui Yu has been Chief Executive Officer of Capinfo Company Limited since November 25, 2016 and serves as its President. Mr. Yu has been Executive Director of Capinfo Company Limited since January 20, 2017. He served as Chief Operating Director of Capinfo Company Limited. Mr. Yu served as Vice President of Capinfo Company Limited until November 25, 2016. He served as Group Chief Officer of Group Network Technology Services & Network Operation Businesses for Capinfo Co. Ltd. Mr. Yu is responsible for businesses of group network technology services, network operation, quality technology management and Capinfo Call Center. He joined the Group in June 1999. He has nearly 10 years experience of business technology management. Mr. Yu graduated in 1999 from the profession of materials processing Engineering of Tsinghua University and received a Master's Degree.
Donghui's compensation has increased by more than 20% in the past year.
Donghui'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 tenure for the Capinfo management team is about average.
CEO, President & Executive Director
Deputy Chief Engineer
VP, General Counsel & Joint Company Secretary
Supervisor & GM of the administration department
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Capinfo board of directors is less than 3 years, this suggests a new board.
Do Institutions Own Capinfo Company Limited (HKG:1075) Shares?
Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … We also tend to see lower insider ownership in companies that were previously publicly owned. … With a market capitalization of HK$1.0b, Capinfo is a small cap stock, so it might not be well known by many institutional investors.
Is Capinfo Company Limited's (HKG:1075) ROE Of 9.2% Concerning?
This article is for those who would like to learn about Return On Equity (ROE). … Another way to think of that is that for every HK$1 worth of equity in the company, it was able to earn HK$0.092. … Return on Equity = Net Profit ÷ Shareholders' Equity
Is Capinfo Company Limited (HKG:1075) Struggling With Its 10% Return On Capital Employed?
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)? … How Do You Calculate Return On Capital Employed?
What does Capinfo Company Limited's (HKG:1075) Balance Sheet Tell Us About Its Future?
The direct benefit for Capinfo Company Limited (HKG:1075), which sports a zero-debt capital structure, to include debt in its capital structure is the reduced cost of capital. … However, the trade-off is 1075 will have to adhere to stricter debt covenants and have less financial flexibility. … Is 1075 growing fast enough to value financial flexibility over lower cost of capital.
Read This Before Buying Capinfo Company Limited (HKG:1075) Shares
So we'll take a look at whether insiders have been buying or selling shares in Capinfo Company Limited (HKG:1075). … Capinfo Insider Transactions Over The Last Year. … In the last twelve months, the biggest single sale by an insider was when Qishi Chen sold HK$9.3m worth of shares at a price of HK$0.63 per share.
Something To Consider Before Buying Capinfo Company Limited (HKG:1075) For The 4.1% Dividend
A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. … Does Capinfo tick all the boxes of a great dividend stock? … 5 checks you should do on a dividend stock
Should You Be Tempted To Buy Capinfo Company Limited (HKG:1075) Because Of Its PE Ratio?
I am writing today to help inform people who are new to the stock market. … and want to learn about the link between company’s fundamentals and stock market performance. … While 1075 might seem like an attractive stock to buy, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions.
What Investors Should Know About Capinfo Company Limited's (HKG:1075) Financial Strength
Investors are always looking for growth in small-cap stocks like Capinfo Company Limited (HKG:1075), with a market cap of CN¥985.35m. … However, an important fact which most ignore is: how financially healthy is the business?
Who Are The Largest Shareholders In Capinfo Company Limited (HKG:1075)?
I am going to take a deep dive into Capinfo Company Limited’s (HKG:1075) most recent ownership structure, not a frequent subject of discussion among individual investors. … Ownership structure of a company has been found to affect share performance over time. … The effect of an active institutional investor with a similar ownership as a passive pension-fund can be vastly different on a company's corporate governance and accountability to shareholders.
Want To Invest In Capinfo Company Limited (HKG:1075)? Here's How It Performed Lately
After looking at Capinfo Company Limited's (HKG:1075) latest earnings announcement (31 December 2017), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … As a long-term investor I tend to focus on earnings trend, rather than a single number at one point in time. … 1075's trailing twelve-month earnings (from 31 December 2017) of HK$81.13m has
Capinfo Company Limited provides online application and system integration services in the People’s Republic of China. The company offers various industry solutions, including e-government, health care, community service, urban transportation, housing fund, public security, and cloud service solutions. It also provides IT services, such as IT planning consultation, IT construction and implementation, IT operation and maintenance value-added services, IT outsourcing service, and Internet data center. In addition, the company offers IT planning consultation and technology services to its clients. Capinfo Company Limited was founded in 1998 and is headquartered in Beijing, the People’s Republic of China.
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