Discounted Cash Flow Calculation for NSEI:KITEX 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.
NSEI:KITEX 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
Kitex Garments's earnings available for a low price, and how does
this compare to other companies in the same industry?
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Kitex Garments has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Luxury industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Kitex Garments's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Kitex Garments's earnings growth to the India market average as no estimate data is available.
Unable to compare Kitex Garments's revenue growth to the India market average as no estimate data is available.
Unable to determine if Kitex Garments is high growth as no earnings estimate data is available.
Unable to determine if Kitex Garments 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.
Kitex Garments'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
1/6, 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. Sabu M. Jacob has been Managing Director of Kitex Garments Ltd. since August 16, 2006 and served as its Chief Financial Officer since January 25, 2016 until September 30, 2018. Mr. Jacob serves as the Chairman of Kitex Garments Ltd. He has 25 years experience and previously served as an Executive Director of Kitex Ltd. He holds B.A. Economics degree.
Sabu's compensation has been consistent with company performance over the past year.
Sabu's remuneration is higher than average for companies of similar size in India.
Chairman & MD
CFO & Compliance Officer
Dan De Yoe
Vice President and Director of Operations - USA
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Kitex Garments board of directors is about average.
Board of Directors
Chairman & MD
Independent Non Executive Director
Independent & Non-Executive Director
K. L. Narayanan
Who owns this company?
Recent Insider Trading
More shares have been bought than sold by Kitex Garments insiders in the past 3 months, but not in substantial volumes.
Have Insiders Been Buying Kitex Garments Limited (NSE:KITEX) Shares?
So before you buy or sell Kitex Garments Limited (NSE:KITEX), you may well want to know whether insiders have been buying or selling. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … In the last twelve months Kitex Garments insiders were buying shares, but not selling.
Is Now The Time To Look At Buying Kitex Garments Limited (NSE:KITEX)?
Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing? … So, could the stock still be trading at a low price relative to its actual value. … Let’s take a look at Kitex Garments’s outlook and value based on the most recent financial data to see if the opportunity still exists
Such Is Life: How Kitex Garments (NSE:KITEX) Shareholders Saw Their Shares Drop 67%
Unfortunately, they have held through a 67% decline in the share price in that time. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During the three years that the share price fell, Kitex Garments's earnings per share (EPS) dropped by 14% each year.
Kitex Garments Limited (NSE:KITEX) Is Employing Capital Very Effectively
Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.
Is Kitex Garments Limited (NSE:KITEX) 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. … Historically, Kitex Garments Limited (NSE:KITEX) has paid dividends to shareholders, and these days it yields 1.5%. … Let's take a look at Kitex Garments in more detail.
Is Kitex Garments Limited's (NSE:KITEX) CEO Being Overpaid?
Sabu Jacob has been the CEO of Kitex Garments Limited (NSE:KITEX) since 2006. … This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Sabu Jacob's Compensation Compare With Similar Sized Companies?
Kitex Garments Limited (NSE:KITEX) Insiders Increased Their Holdings
Kitex Garments Insider Transactions Over The Last Year. … Happily, we note that in the last year insiders bought 366.24k shares for a total of ₹12m. … In total, Kitex Garments insiders bought more than they sold over the last year
Do You Know What Kitex Garments Limited's (NSE:KITEX) P/E Ratio Means?
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll look at Kitex Garments Limited's (NSE:KITEX) P/E ratio and reflect on what it tells us about the company's share price. … Kitex Garments has a price to earnings ratio of 11.6, based on the last twelve months.
Is Kitex Garments Limited (NSE:KITEX) Potentially Undervalued?
saw a double-digit share price rise of over 10% in the past couple of months on the NSEI. … So, could the stock still be trading at a low price relative to its actual value. … Let’s examine Kitex Garments’s valuation and outlook in more detail to determine if there’s still a bargain opportunity
What Kind Of Shareholder Appears On The Kitex Garments Limited's (NSE:KITEX) Shareholder Register?
The big shareholder groups in Kitex Garments Limited (NSE:KITEX) have power over the company. … Kitex Garments is a smaller company with a market capitalization of ₹7.3b, so it may still be flying under the radar of many institutional investors. … We can zoom in on the different ownership groups, to learn more about KITEX
Kitex Garments Limited manufactures fabric and readymade garments in India. The company primarily offers infant wear comprising body suits, rompters, bibs, burps, sleepwear, training pants, sleep n play products, gowns, skirts and skorts, panties, blankets, mitten/booties, diaper covers, and stretchy products. It also exports its products to the United States and Europe. The company was founded in 1992 and is based in Kochi, India.
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