Discounted Cash Flow Calculation for OTCPK:NLFK.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 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.
OTCPK:NLFK.F 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.
Nilfisk Holding's share price is below the future cash flow value, and at a moderate discount (> 20%).
Nilfisk Holding'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
Nilfisk Holding's earnings available for a low price, and how does
this compare to other companies in the same industry?
Nilfisk Holding's earnings are expected to grow significantly at over 20% yearly.
Nilfisk Holding's revenue is expected to grow by 2.9% 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.
Nilfisk Holding'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.
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. Hans Henrik Lund serves as the Chief Executive Officer at Nilfisk Holding A/S. and Act as its Interim Head of America since November 6, 2018. He is Chief Executive Officer of Nilfisk A/S since August 2017 and is Member of Executive Management Board at Nilfisk A/S. Mr. Lund has a strong background in technology, digitalization and product development. Mr. Lund has held several leadership positions in global companies over 25 years. He served as Chief Executive Officer at the Finnish lighting company Helvar. Mr. Lund served as Director of Media Online activities and Member of Management Board of Søndagsavisen a-s(a/k/a:North Media A/S) since October 2007 until August 1, 2009. He served as President of GN Netcom, Inc. Mr. Lund served as Chief Executive Officer of GN Netcom; served as Chief Operating Officer of Invacare Inc.; has a 10 year long career with Danfoss A/S in different positions and in the field of heating automation; and another 10 years leading mobile accessory companies, such as Jabra and Nokia Gear. He serves as a Member of the board of directors of Royal Copenhagen A/S and Traen Informationssystemer A/S. Mr. Lund served as Chairman and Member of the Board of Directors at Hymite A/S. He has a clear business approach to the task with a sharp focus on the customers. Mr. Lund holds an MSc in Mechanical Engineering from Aalborg University, a Ph.D in Material Science from Aalborg University and an MBA in Organisation and Business Management from Aarhus BSS (Business and Social Sciences), Denmark.
Hans's compensation has been consistent with company performance over the past year, both up more than 20%.
Hans's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the Nilfisk Holding management team is less than 2 years, this suggests a new team.
CEO & Member of Executive Management Board
Executive Vice President of Global Operations
Head of Investor Relations
Executive Vice President of Marketing
Executive Vice President of Human Resources
Executive Vice President of Products & Services
Senior Vice President of APAC Sales
Senior Vice President of Strategy & Business Development
Executive Vice President of EMEA Americas Sales
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Nilfisk Holding board of directors is less than 3 years, this suggests a new board.
Nilfisk Holding A/S manufactures and sells cleaning products and services worldwide. The company operates in five segments: EMEA, Americas, APAC, Specialty Professional, and Specialty Consumer. It offers commercial and industrial vacuum cleaners; floor cleaning products, including single-disc, burnishers, carpet extractors, scrubber dryers, sweepers, and combination machines; outdoor products, such as utility machines, suction sweepers, street scrubbers, weed control machines, riding lawn mowers, and snow removal machines; mobile, stationary, and petrol/diesel driven pressure washers; and industry, vehicle, floorcare, surface, and textile detergents, as well as care and maintenance products, and disinfectants. It serves clients in agriculture, automotive, beverage, building and construction, ceramics, chemical, education, electronics, food, glass, healthcare, heavy industry, hospitality, metal, optics, paper, pharmaceutical, plastic and rubber, residential areas, retail, textiles, and wood industries, as well as contract cleaners, municipalities, OEM-machine manufacturers, offices and public buildings, parks and gardens, and service contractors. The company serves customers through a network of dealers and distributors, as well as through e-commerce sales. Nilfisk Holding A/S was founded in 1906 and is headquartered in Brøndby, Denmark.
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