Discounted Cash Flow Calculation for ENXTAM:STRN 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:STRN 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.
Stern Groep's share price is below the future cash flow value, and at a moderate discount (> 20%).
Stern Groep'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
Stern Groep's earnings available for a low price, and how does
this compare to other companies in the same industry?
Unable to determine if Stern Groep is high growth as no earnings estimate data is available.
Unable to determine if Stern Groep 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.
Stern Groep'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.
HenkVan der Kwast
TENURE AS CEO
Mr. Henk H. Van Der Kwast serves as Chairman of Management Board, Chief Executive Officer and Member of the Group Council at Stern Groep NV and has been its Member of Management Board since June 21, 2000.
Henk's compensation has been consistent with company performance over the past year, both up more than 20%.
Henk's remuneration is higher than average for companies of similar size in Netherlands.
Management Team Tenure
Average tenure of the
management team in years:
The tenure for the Stern Groep management team is about average.
Henk Van der Kwast
Chairman of Management Board
Loes M. van Dalen
Director of Human Resources & Member of the Group Council
Controller of Stern Mobility Solutions
Controller of Stern Car Services
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Stern Groep board of directors is about average.
Does Market Volatility Impact Stern Groep N.V.'s (AMS:STRN) Share Price?
Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … If this beta value holds true in the future, Stern Groep shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. … What this means for you: Beta only tells us that the Stern Groep share price is sensitive to broader market movements.
Why Stern Groep N.V.’s (AMS:STRN) Return On Capital Employed Might Be A Concern
Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Stern Groep: 0.012 = €4.9m ÷ (€675m - €273m) (Based on the trailing twelve months to December 2018.) Therefore, Stern Groep has an ROCE of 1.2%. … Stern Groep's Current Liabilities And Their Impact On Its ROCE Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.
Investors Who Bought Stern Groep (AMS:STRN) Shares Five Years Ago Are Now Up 28%
Better yet, you'd like to see the share price move up more than the market average. … For the last half decade, Stern Groep can boast revenue growth at a rate of 5.0% per year. … It's probably fair to say that the modest growth is reflected in the modest share price gain of 5.0% per year.
Does Stern Groep N.V.'s (AMS:STRN) CEO Pay Matter?
This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Henk Van der Kwast's Compensation Compare With Similar Sized Companies. … is worth €99m, and total annual CEO compensation is €684k.
Is It Time To Consider Buying Stern Groep N.V. (AMS:STRN)?
(AMS:STRN), which is in the specialty retail business, and is based in Netherlands,. … So, could the stock still be trading at a low price relative to its actual value. … Let’s take a look at Stern Groep’s outlook and value based on the most recent financial data to see if the opportunity still exists
Why We’re Not Keen On Stern Groep N.V.’s (AMS:STRN) 2.5% Return On Capital
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … How Do You Calculate Return On Capital Employed
What Kind Of Shareholder Owns Most Stern Groep N.V. (AMS:STRN) Stock?
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. … Stern Groep is a smaller company with a market capitalization of €88m, so it may still be flying under the radar of many institutional investors.
What You Must Know About Stern Groep N.V.'s (AMS:STRN) Beta Value
(AMS:STRN), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility).
Should You Think About Buying Stern Groep N.V. (AMS:STRN) Now?
received a lot of attention from a substantial price movement on the ENXTAM over the last few months, increasing to €16.45 at one point, and dropping to the lows of €13.1. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … A question to answer is whether Stern Groep's current trading price of €14.35 reflective of the actual value of the?
Stern Groep N.V. operates as an automotive retail and services company in the Netherlands. The company operates through Dealergroup Stern, Stern Mobility Solutions, Stern Car Services, and Other segments. The Dealergroup Stern segment engages in the sale of new and used passenger cars and light commercial vehicles; and provision of maintenance and repair services for passenger cars and light commercial vehicles. The Stern Mobility Solutions segment provides dealer leasing, region leasing, car leasing and rental, fleet management, insurance, financing, maintenance contract, and used-car warranty services, as well as e-mobility, and financial and other mobility products and services to small and medium-sized enterprises. The Stern Car Services segment offers car body repair and passenger cars maintenance services; and interiors fitting services for light commercial vehicles. It sell various car brands, including Ford, Dacia, Renault, Nissan, Kia, Opel, Audi, Seat, Skoda, Volkswagen, Jaguar, Land Rover, Mercedes-Benz, Smart, Volvo, Abarth, Fiat, Jeep, Mitsubishi Motors, Subaru, and Alfa Romeo. Stern Groep N.V. is headquartered in Amsterdam, the Netherlands.
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