Discounted Cash Flow Calculation for BIT:CRL 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.
BIT:CRL 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
Carel Industries's earnings available for a low price, and how does
this compare to other companies in the same industry?
Carel Industries's earnings are expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).
Carel Industries's revenue is expected to grow by 10.1% 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.
Carel Industries'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
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
Carel Industries's finances.
The net worth of a company is the difference between its assets and liabilities.
Carel Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Carel Industries's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Carel Industries'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 3.1x 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. Francesco Nalini serves as Chief Executive Officer of Carel Industries S.p.a and has been its Director since January 23, 2009. Mr. Nalini was employed at Carel S.p.A. in the position of Managing Director. He joined the Company in 2005, where he served as Director of Operations before becoming General Manager and Director of the Company. He obtained a degree in Engineering Management from the University of Padua in 1997, worked at McKinsey from 2001 to 2002 and, from 2002 to 2005, was ICT Manager at Errennegi S.r.l.
Insufficient data for Francesco to compare compensation growth.
Insufficient data for Francesco to establish whether their remuneration is reasonable compared to companies of similar size in Italy.
CEO & Director
Executive Member of the Board of Directors
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Carel Industries board of directors is less than 3 years, this suggests a new board.
Is Carel Industries S.p.A. (BIT:CRL) A High Quality Stock To Own?
By way of learning-by-doing, we'll look at ROE to gain a better understanding of Carel Industries S.p.A. … Over the last twelve months Carel Industries has recorded a ROE of 28%. … Return on Equity = Net Profit ÷ Shareholders' Equity
Should We Worry About Carel Industries S.p.A.'s (BIT:CRL) P/E Ratio?
We'll show how you can use Carel Industries S.p.A.'s (BIT:CRL) P/E ratio to inform your assessment of the investment opportunity. … Based on the last twelve months, Carel Industries's P/E ratio is 33.53. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Carel Industries S.p.A. (BIT:CRL): Time For A Financial Health Check
Investors are always looking for growth in small-cap stocks like Carel Industries S.p.A. … However, an important fact which most ignore is: how financially healthy is the business? … Evaluating financial health as part of your investment thesis is
Should We Be Delighted With Carel Industries S.p.A.'s (BIT:CRL) ROE Of 28%?
Our data shows Carel Industries has a return on equity of 28% for the last year. … That means that for every €1 worth of shareholders' equity, it generated €0.28 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Here's What Carel Industries SpA's (BIT:CRL) P/E Is Telling Us
We'll show how you can use Carel Industries SpA's (BIT:CRL) P/E ratio to inform your assessment of the investment opportunity. … Carel Industries has a P/E ratio of 29.87, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
How Financially Strong Is Carel Industries SpA (BIT:CRL)?
Carel Industries SpA (BIT:CRL) is a small-cap stock with a market capitalization of €935m. … 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
Should You Worry About The Carel Industries SpA's (BIT:CRL) Shareholder Register?
The big shareholder groups in Carel Industries SpA (BIT:CRL) have power over the company. … Generally speaking, as a company grows, institutions will increase their ownership. … Check out our latest analysis for Carel Industries
Does Carel Industries SpA's (BIT:CRL) PE Ratio Warrant A Buy?
I am writing today to help inform people who are new to the stock market. … and want to begin learning the link between Carel Industries SpA (BIT:CRL)’s fundamentals and stock market performance. … Carel Industries SpA (BIT:CRL) trades with a trailing P/E of 2.5x, which is lower than the industry average of 16.6x.
Carel Industries S.p.A. develops and promotes control systems and solutions for the HVAC/R sector in Italy and internationally. The company offers programmable controls, room and unit terminals, air-conditioning parametric controls, refrigeration parametric controls, isothermal and adiabatic humidifiers, water treatment systems, remote management and monitoring systems, connectivity products, sensors and protection devices, electronic expansion valves and drivers, speed controllers and inverters, electrical panels, and obsolete products, as well as temperature, humidity, and pressure control solutions. It also provides energy management, light management, and waterloop system solutions, as well as solutions for cabinets, cold rooms, and condensing units. The company was founded in 1973 and is headquartered in Brugine, Italy. Carel Industries S.p.A. is a subsidiary of Carel S.p.A.
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