Discounted Cash Flow Calculation for ENXTAM:FFARM 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.
ENXTAM:FFARM 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.
ForFarmers's share price is below the future cash flow value, and at a moderate discount (> 20%).
ForFarmers's share price is below the future cash flow value, but not 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
ForFarmers's earnings available for a low price, and how does
this compare to other companies in the same industry?
ForFarmers's earnings are expected to grow by 8% yearly, however this is not considered high growth (20% yearly).
ForFarmers's revenue is expected to grow by 2.4% 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.
ForFarmers'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.
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. Yoram Knoop has been Chief Executive Officer and Member of Management Board at ForFarmers B.V. since January 2014 and serves as its Chairman of Executive Board and General Manager. Mr. Knoop has been Managing Director of ForFarmers B.V. since January 1, 2014. He has been with ForFarmers since November 2013 and serves as its Chairman of The Board of Directors. He is responsible for strategy and acquisitions, Human Resource Management and for developing new markets. In 2003, Mr. Knoop joined Quest (now Givaudan) to run the sweet flavours business. Six years later, he moved Provimi/Cargill where he became managing director Premix and Nutrition EMEA. He served as Commercial Director of Alcopor Owens Corning, a group company of Alcopor Holding AG. He held various positions in sales, marketing, operations and general management and acquired extensive international experience. He worked for listed, private as well as private equity owned businesses, all active in materials processing in various end user industries. Mr. Knoop started to work for GE Plastics in 1991, first in the Netherlands and then in the UK. Mr. Knoop is a member of FEFAC's Steering Group. He studied business administration at the Erasmus University in Rotterdam.
Yoram's compensation has been consistent with company performance over the past year.
Yoram's remuneration is about average for companies of similar size in Netherlands.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the ForFarmers management team is less than 2 years, this suggests a new team.
Chairman of Executive Board
CFO, Financial Director & Member of Executive Board
Chief Operating Officer
Adrie J. van der Ven
COO & Member of Executive Board
Chief Operating Officer
Chief Operating Officer
Director of Investor Relations & Communications
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the ForFarmers board of directors is about average.
Here's How P/E Ratios Can Help Us Understand ForFarmers N.V. (AMS:FFARM)
ForFarmers has a price to earnings ratio of 12.66, based on the last twelve months. … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for ForFarmers: P/E of 12.66 = €7.4 ÷ €0.58 (Based on the year to December 2018.) Is A High Price-to-Earnings Ratio Good? … Earnings growth means that in the future the 'E' will be higher.
Should You Be Concerned About ForFarmers N.V.'s (AMS:FFARM) Earnings Growth?
For long term investors, improvement in profitability and outperformance against the industry can be important characteristics in a stock. … In this article, I will take a look at ForFarmers N.V.'s (AMS:FFARM) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 11%, indicating the rate at which FFARM is growing has slowed down.
Investors Who Bought ForFarmers (AMS:FFARM) Shares A Year Ago Are Now Down 37%
The falls have accelerated recently, with the share price down 10% in the last three months. … 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 unfortunate twelve months during which the ForFarmers share price fell, it actually saw its earnings per share (EPS) improve by 3.9%.
Could ForFarmers N.V.'s (AMS:FFARM) Investor Composition Influence The Stock Price?
Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Companies that used to be publicly owned tend to have lower insider ownership. … institutions own shares in the company.
Does ForFarmers N.V. (AMS:FFARM) Have A Place In Your Portfolio?
A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. … (AMS:FFARM) has paid a dividend to shareholders. … How I analyze a dividend stock
Is ForFarmers N.V. (AMS:FFARM) Expensive For A Reason? A Look At The Intrinsic Value
by projecting its future cash flows and then discounting them to today's value. … discounted cash flows (DCF) … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model.
ForFarmers N.V. (AMS:FFARM): A Fundamentally Attractive Investment
As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … is a company with great financial health as well as a.
Shareholders Should Look Hard At ForFarmers N.V.’s (AMS:FFARM) 15% Return On Capital
Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.
What Investors Should Know About ForFarmers N.V.'s (AMS:FFARM) Financial Strength
(AMS:FFARM) with its market cap of €845m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Evaluating financial health as part of your investment thesis is. … I believe these basic checks tell most of the story you need to know.
ForFarmers N.V. provides feed solutions for conventional and organic livestock farming in the Netherlands, Germany/Belgium, and the United Kingdom. The company offers compound feed, single raw materials, concentrates, blends, and semi-finished products; farm minerals, additives, transition products, young animal feed, and other specialties; and co-products, including stackable and dry co-products, and liquid feed. It also provides seeds, silage products, crop protection products, and fertilizers; and roughage and bedding products. In addition, the company offers advisory services in the areas of feed, livestock farming, and business development, as well as tools, such as programs, products, and services, which enable farmers to set business objectives, and monitor and benchmark results. It provides feed solutions for the ruminant, swine, and poultry sectors. The company is headquartered in Lochem, the Netherlands. ForFarmers N.V. is a subsidiary of Coöperatie FromFarmers U.A.
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