Discounted Cash Flow Calculation for OTCPK:REGR.F 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 use
analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
OTCPK:REGR.F DCF 1st Stage: Next 5 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.
REG Technologies's share price is below the future cash flow value, and at a moderate discount (> 20%).
REG Technologies'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
REG Technologies's earnings available for a low price, and how does
this compare to other companies in the same industry?
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as REG Technologies has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Auto Components industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare REG Technologies's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare REG Technologies's earnings growth to the United States of America market average as no estimate data is available.
Unable to compare REG Technologies's revenue growth to the United States of America market average as no estimate data is available.
Unable to determine if REG Technologies is high growth as no earnings estimate data is available.
Unable to determine if REG Technologies 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.
While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access REG Technologies's filings and announcements here.
REG Technologies'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
0/6, 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
REG Technologies's finances.
The net worth of a company is the difference between its assets and liabilities.
REG Technologies's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
REG Technologies has no long term commitments.
This treemap shows a more detailed breakdown of
REG Technologies'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.
Low level of unsold assets.
REG Technologies has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
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.
TENURE AS CEO
Mr. Paul Willard Chute has been the Chief Financial Officer of REGI U.S. Inc. since September 30, 2018 and was its Chief Executive Officer of REGI U.S. Inc. since July 17, 2016 until April 30, 2018. Mr. Chute has been Chief Executive Officer of REG Technologies Inc. since July 17, 2016 and serves as its President. He serves as Interim Chief Financial Officer and Secretary at REG Technologies Inc. He serves as Chief Executive Officer and President of Rand Energy Group, Inc. He serves as Chief Executive Officer of Radmax Technologies, Inc. He served as President at REGI U.S. Inc. since July 17, 2016 until September 2017. He has served as both the CEO and CFO of Acadia National Health Systems. He was one of the first investors in REG Technologies in 1992 and has been a staunch supporter ever since. His strong belief in the potential of the RadMax technology has led him to come out of recent retirement to aggressively move the companies forward with persistence and focus on refining, testing and marketing the RadMax Engine. Mr. Chute has a lifetime of experience in making development stage companies successful, serving as both Chief Financial Officer and Chief Executive Officer of both private and public companies. He has been Chairman at REGI U.S., Inc since April 30, 2018. He has been a Director at REGI U.S., Inc. and REG Technologies Inc. since August 12, 2016. He serves as Director of Minewest Silver and Gold Inc. He serves as Sole Director of Rand Energy Group, Inc. Mr. Chute has over 45 years of executive experience with numerous public and private companies. He has an MBA in Business Management from from Husson University and a BS in Accounting from the University of Maine.
Insufficient data for Paul to compare compensation growth.
Paul's remuneration is lower than average for companies of similar size in United States of America.
Vice President of Development
Vice President of Engineering
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the REG Technologies board of directors is less than 3 years, this suggests a new board.
REG Technologies Inc. does not have significant operations. Previously, it was engaged in developing and building an axial vane type rotary engine. The company was formerly known as Reg Resources Corp. and changed its name to Reg Technologies Inc. in February 1993. The company was incorporated in 1982 and is based in Vancouver, Canada.
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