Discounted Cash Flow Calculation for WSE:STP 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.
WSE:STP 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.
Stalprodukt's share price is below the future cash flow value, and at a moderate discount (> 20%).
Stalprodukt'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
Stalprodukt's earnings available for a low price, and how does
this compare to other companies in the same industry?
Stalprodukt's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Stalprodukt's revenue is expected to grow by 1.8% 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.
Stalprodukt'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
Metals and Mining
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. Piotr Janeczek has been the President of the Management Board and Chief Executive Officer at Stalprodukt Spólka Akcyjna (Zaklady Przetworstwa Hutniczego Stalprodukt Sa) since June 25, 2004 and served as its Vice President of the Management Board from January 2002 to June 2004. Mr. Janeczek is a graduate of Academy of Mining and Metallurgy in Cracow.
Piotr's compensation has increased by more than 20% in the past year.
Piotr's remuneration is higher than average for companies of similar size in Poland.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the Stalprodukt management team is over 5 years, this suggests they are a seasoned and experienced team.
President of the Management Board & CEO
Financial Director & Member of the Management Board
Marketing Director & Member of Management Board
Secretary & Member of Supervisory Board
Technical Director - Plenipotentiary for Quality and Environment Management - Proxy
Board of Directors Tenure
Average tenure of the
board of directors in years:
The average tenure for the Stalprodukt board of directors is less than 3 years, this suggests a new board.
Are Investors Undervaluing Stalprodukt S.A. (WSE:STP) By 25%?
This is done using the Discounted Cash Flow (DCF) model. … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. … We're using the 2-stage growth model, which simply means we take in account two stages of company's growth
Is Stalprodukt S.A.'s (WSE:STP) P/E Ratio Really That Good?
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … Stalprodukt has a price to earnings ratio of 6.66, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Can You Imagine How Stalprodukt's (WSE:STP) Shareholders Feel About The 63% Share Price Increase?
(WSE:STP) share price is up 63% in the last 5 years, clearly besting than the market return of around -1.2% (ignoring dividends). … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … This EPS growth is higher than the 10% average annual increase in the share price.
Are Stalprodukt S.A.’s Returns On Capital Worth Investigating?
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.
Why Stalprodukt S.A.'s (WSE:STP) CEO Pay Matters To You
Piotr Janeczek became the CEO of Stalprodukt S.A. … First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Piotr Janeczek's Compensation Compare With Similar Sized Companies?
Stalprodukt S.A. (WSE:STP) Is Trading At A 47.86% Discount
by taking the foreast future cash flows of the company and discounting them back 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
What Kind Of Shareholder Appears On The Stalprodukt S.A.'s (WSE:STP) Shareholder Register?
Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … We also tend to see lower insider ownership in companies that were previously publicly owned. … Taking a look at the our data on the ownership groups (below), it's seems that.
These Factors Make Stalprodukt SA (WSE:STP) An Interesting Investment
Stalprodukt SA (WSE:STP) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … is a company that has been able to sustain great financial health, trading at an attractive share price.
Stalprodukt S.A., together with its subsidiaries, manufactures and exports processed steel products in Poland. It offers cold rolled electrical steel; cold rolled sections, such as closed and open structural profiles, precision structural tubing, reinforcing sections for PVC profiles, and special purpose sections; cold and hot rolled sheets, coils, and strips; transformer cores; and steel safety barriers. The company is also involved in the wholesale trading of steel products; production of steel structures and spare parts; provision of repair services; production of metal elements for construction carpentry; maintenance of roads; and assembly of road barriers. In addition, it engages in the provision of galvanizing and security services; production of galvanized strips and wires; non-ferrous metals mining; production of zinc and lead; and design of renewable energy sources. The company was formerly known as ZPH Stalprodukt S.A. and changed its name to Stalprodukt S.A. in 2005. Stalprodukt S.A. was founded in 1971 and is based in Bochnia, Poland.
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