Discounted Cash Flow Calculation for OB:KID 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.
OB:KID 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.
Kid's share price is below the future cash flow value, and at a moderate discount (> 20%).
Kid'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
Kid's earnings available for a low price, and how does
this compare to other companies in the same industry?
Kid's earnings are expected to grow by 9.7% yearly, however this is not considered high growth (20% yearly).
Kid's revenue is expected to grow by 19.8% 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.
Kid'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
5/6, 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. Anders Fjeld has been Chief Operating Officer of Kid ASA since November 01, 2018. Mr. Anders Fjeld was the Chief Operating Officer at XXL ASA since February 2016 and served as its Acting Managing Director of Norway since May 2016 until October 18, 2017. He has solid management experience from retail companies that have been successful in both physical and online retail across the Nordic countries and has shown strong financial performance and leadership capabilities in his positions. Mr. Anders Fjeld served as Managing Director of Norway at XXL ASA from 2004 to February 19, 2016. He assumed the role as Sales Manager and Head of Purchases in XXL. Mr. Fjeld holds a Bachelor degree in Business and Administration from BI Norwegian Business School.
Insufficient data for Anders to compare compensation growth.
Insufficient data for Anders to establish whether their remuneration is reasonable compared to companies of similar size in Norway.
Management Team Tenure
Average tenure of the
management team in years:
The tenure for the Kid management team is about average.
Chief Executive Officer
Chief Financial Officer
Head of Marketing
Head of Sourcing
Head of Store Operations
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Kid board of directors is about average.
Board of Directors
Who owns this company?
Recent Insider Trading
More shares have been bought than sold by Kid insiders in the past 3 months.
Check out our latest analysis for Kid Kid Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider purchase was by Director Bjørn Gjelsten for øre10m worth of shares, at about øre34.30 per share. … Insider Ownership I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. … Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term.
Investors Who Bought Kid (OB:KID) Shares Three Years Ago Are Now Up 40%
During three years of share price growth, Kid achieved compound earnings per share growth of 14% per year. … When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. … We note that for Kid the TSR over the last 3 years was 60%, which is better than the share price return mentioned above.
Here's What Kid ASA's (OB:KID) P/E Ratio Is Telling Us
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Looking at earnings over the last twelve months, Kid has a P/E ratio of 10. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Does Kid ASA's (OB:KID) 19% Earnings Growth Make It An Outperformer?
When Kid ASA (OB:KID) announced its most recent earnings (31 December 2018), I did two things: looked at its past earnings track record, then look at what is happening in the industry. … Did KID's recent earnings growth beat the long-term trend and the industry. … KID's trailing twelve-month earnings (from 31 December 2018) of øre169m has.
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … How Do You Calculate Return On Equity … Return on Equity = Net Profit ÷ Shareholders' Equity
How Good Is Kid ASA (OB:KID) At Creating Shareholder Value?
Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
Kid Shareholders Booked A 27% Gain In The Last Three Years
That's what has happened with the Kid ASA (OB:KID) share price. … During three years of share price growth, Kid achieved compound earnings per share growth of 14% per year. … The average annual share price increase of 8.4% is actually lower than the EPS growth.
If you want to know who really controls Kid ASA (OB:KID), then you'll have to look at the makeup of its share registry. … So it's nice to see some insider ownership, because it may suggest that management is owner-oriented. … Taking a look at the our data on the ownership groups (below), it's seems that.
Kid ASA, together with its subsidiaries, operates as a home textile retailer in Norway. It offers a range of home and interior products, including textiles, curtains, bed linens, and other interior products. The company provides its products under the Kid, Dekosol, and Nordun brands. As of December 31, 2018, it operated 143 stores, as well as an online sales platform. Kid ASA also offers logistics services. The company was formerly known as Nordisk Tekstil Holding AS. Kid ASA was founded in 1937 and is headquartered in Lier, Norway.
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