Discounted Cash Flow Calculation for SEHK:1611 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:1611 DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
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
is considered below, and whether this is a fair price.
Price based on past earnings
Pantronics Holdings's earnings available for a low price, and how does
this compare to other companies in the same industry?
Pantronics Holdings's earnings are expected to grow by 12.2% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Pantronics Holdings 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.
Pantronics Holdings'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.
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
Pantronics Holdings's finances.
The net worth of a company is the difference between its assets and liabilities.
Pantronics Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Pantronics Holdings's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Pantronics Holdings'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 2.2x 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.
Is Pantronics Holdings Limited (HKG:1611) Investing Your Capital Efficiently?
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Understanding Return On Capital Employed (ROCE). … Analysts use this formula to calculate return on capital employed:
Will Pantronics Holdings Limited (HKG:1611) Continue To Underperform Its Industry?
We'll use ROE to examine Pantronics Holdings Limited (HKG:1611), by way of a worked example. … That means that for every HK$1 worth of shareholders' equity, it generated HK$0.035 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Want To Invest In Pantronics Holdings Limited (HKG:1611)? Here's How It Performed Lately
Assessing Pantronics Holdings Limited's (HKG:1611) past track record of performance is a useful exercise for investors. … Below, I assess 1611's latest performance announced on 31 March 2018 and evaluate these figures to its historical trend and industry movements. … 1611's trailing twelve-month earnings (from 31 March 2018) of HK$4.0m has
Are Pantronics Holdings Limited's (HKG:1611) Interest Costs Too High?
Investors are always looking for growth in small-cap stocks like Pantronics Holdings Limited (HKG:1611), with a market cap of HK$733.94m. … However, an important fact which most ignore is: how financially healthy is the business?
What does Pantronics Holdings Limited's (HKG:1611) Balance Sheet Tell Us About Its Future?
Pantronics Holdings Limited (HKG:1611) is a small-cap stock with a market capitalization of HK$762.00m. … 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. … Assessing first and foremost the financial health is
Pantronics Holdings Limited, an investment holding company, operates in the electronic manufacturing services industry. It manufactures and distributes power-related, and electrical and electronic products, such as electronic power supplies, battery chargers, and coils/solenoids, as well as LED and optical products comprising LED lighting. The company operates in Mainland China, Hong Kong, the United Kingdom, the United States, Japan, and internationally. The company was formerly known as Yanky Investment Limited and changed its name to Pantronics Holdings Limited in March 1992. Pantronics Holdings Limited was founded in 1983 and is headquartered in Tsuen Wan, Hong Kong. As of August 21, 2018, Pantronics Holdings Limited operates as a subsidiary of Huobi Global Limited.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.