Discounted Cash Flow Calculation for NasdaqGS:ROCK 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.
NasdaqGS:ROCK DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
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
Gibraltar Industries's earnings available for a low price, and how does
this compare to other companies in the same industry?
Gibraltar Industries's earnings are expected to grow by 15.6% yearly, however this is not considered high growth (20% yearly).
Gibraltar Industries's revenue is expected to grow by 3.9% 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.
Gibraltar Industries'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
2/6, 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
Gibraltar Industries's finances.
The net worth of a company is the difference between its assets and liabilities.
Gibraltar Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Gibraltar Industries's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Gibraltar Industries'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.
Debt is covered by short term assets, assets are 2.6x debt.
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. William T. Bosway has been President, Chief Executive Officer and Director at Gibraltar Industries, Inc. since January 2, 2019. Mr. Bosway
serves as Vice President of Dover Corporation. He has been President and Chief Executive Officer of Dover Refrigeration & Food Equipment since June 2016. Mr. Bosway served as Group Vice President, solutions & technology of Emerson’S Climate Technologies from May 2008 to June 2016.
Insufficient data for William to compare compensation growth.
Insufficient data for William to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Gibraltar Industries management team is about average.
Senior VP & CFO
Senior Vice President of Human Resources & Organizational Development
VP, Treasurer & Secretary
Chief Operating Officer
President of Residential Ventilation & Air Management Products
President of Construction Metals & Weather Guard Business
Group President of Building Products
VP & Corporate Controller
President of the Renewable Energy and Conservation Group
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Gibraltar Industries board of directors is about average.
If You Had Bought Gibraltar Industries (NASDAQ:ROCK) Shares Five Years Ago You'd Have Made 140%
(NASDAQ:ROCK) which saw its share price drive 140% higher over five years. … Indeed, the Gibraltar Industries share price has gained 47% in three years. … This EPS growth is higher than the 14% average annual increase in the share price over the same three years.
Is Gibraltar Industries, Inc. (NASDAQ:ROCK) Creating Value For Shareholders?
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Understanding Return On Capital Employed (ROCE). … Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
What You Should Know About Gibraltar Industries, Inc.'s (NASDAQ:ROCK) Financial Strength
(NASDAQ:ROCK) with its market cap of US$1.3b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … The following basic checks can help you get a picture of the company's balance sheet strength.
Should You Be Concerned About Gibraltar Industries, Inc.'s (NASDAQ:ROCK) Historical Volatility?
Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.
Gibraltar Industries, Inc. (NASDAQ:ROCK): Did It Outperform The Industry?
Understanding Gibraltar Industries, Inc.'s (NASDAQ:ROCK) performance as a company requires examining more than earnings from one point in time. … Today I will take you through a basic sense check to gain perspective on how Gibraltar Industries is doing by evaluating its latest earnings with its longer term trend as well as its industry peers' performance over the same period. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 53%, indicating the rate at which ROCK is growing has slowed down.
Does Gibraltar Industries, Inc. (NASDAQ:ROCK) Have A Good P/E Ratio?
To keep it practical, we'll show how Gibraltar Industries, Inc.'s (NASDAQ:ROCK) P/E ratio could help you assess the value on offer. … Gibraltar Industries has a P/E ratio of 15.47, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Is Gibraltar Industries, Inc.'s (NASDAQ:ROCK) 13% Better Than Average?
This article is for those who would like to learn about Return On Equity (ROE). … That means that for every $1 worth of shareholders' equity, it generated $0.13 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Is Gibraltar Industries, Inc. (NASDAQ:ROCK) A Financially Sound Company?
However, an important fact which most ignore is: how financially healthy is the business? … Assessing first and foremost the financial health is. … Here are a few basic checks that are good enough to have a broad overview of the company’s financial strength.
Gibraltar Industries Inc (NASDAQ:ROCK): Why Return On Capital Employed Is Important
and want to begin learning the link between Gibraltar Industries Inc (NASDAQ:ROCK)’s return fundamentals and stock market performance. … To understand Gibraltar Industries’s capital returns we will look at a useful metric called return on capital employed. … Calculating Return On Capital Employed for ROCK
Gibraltar Industries, Inc. manufactures and distributes building products in North America and Asia. It operates through three segments: Residential Products, Industrial and Infrastructure Products, and Renewable Energy and Conservation. The Residential Products segment offers roof and foundation ventilation products and accessories, such as solar powered units; mail and electronic package solutions, including single mailboxes, cluster style mail and parcel boxes for single and multi-family housing, and electronic package locker systems; roof edgings and flashings; soffits and trims; drywall corner beads; metal roofing products and accessories; rain dispersion products comprising gutters and accessories; and exterior retractable awnings. This segment also provides electronic parcel lockers, roof top safety kits, chimney caps, heat trace coils and exterior products, remote-controlled deck awnings for sun protection, and solar-powered ventilation products. The Industrial and Infrastructure Products segment offers expanded and perforated metals used in walkways, catwalks, architectural facades, perimeter security barriers, shelving, and other applications; fiberglass; and expansion joint systems, bearing assemblies, and pavement sealing systems used in bridges, elevated highways, airport runways, and rail crossings. This segment also provides architectural facades for buildings; and perimeter security barriers for protecting critical infrastructure. The Renewable Energy and Conservation segment designs and provides engineered solutions for solar mounting systems and greenhouse structures. It markets its products through sales personnel and outside sales representatives. Gibraltar Industries, Inc. was founded in 1993 and is headquartered in Buffalo, New York.
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