Discounted Cash Flow Calculation for OTCPK:UPNR.Y 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:UPNR.Y 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.
Uponor Oyj's share price is below the future cash flow value, and at a moderate discount (> 20%).
Uponor Oyj'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
Uponor Oyj's earnings available for a low price, and how does
this compare to other companies in the same industry?
Uponor Oyj's earnings are expected to grow by 9.5% yearly, however this is not considered high growth (20% yearly).
Uponor Oyj's revenue is expected to grow by 0.8% 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.
Uponor Oyj'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.
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. Jyri Luomakoski, MBA, has been Vice Chairman of Fiskars Oyj Abp since March 14, 2018. He has been the Chief Executive Officer and President at Uponor Oyj since October 27, 2008. Mr. Luomakoski serves as the President and Chief Executive Officer at Uponor Inc. Mr. Luomakoski serves as managing director at Uponor Oyj. Mr. Luomakoski served as a Senior Executive Vice President of Uponor Oyj and served as its Interim Chief Financial Officer from 1999 to June, 2009. He served as Chief Financial Officer of Asko Oyj and Oy Uponor Ab from 1999 to 1999. He served as an Interim Chief Executive Officer of Uponor Oyj from October 27, 2008 to December 2008 and served as its Interim President until December 2008. He served as the Deputy Chief Executive Officer of Uponor Oyj from 2002 to December 2008. He served as Group Controller of Uponor from 1996 to 1999. He was employed by Uponor since 1996. He served as Deputy Managing Director and Chief Financial Officer of Oy Lars Krogius Ab from 1991 to 1996. He served as Director and Manager positions in Germany and Finland, Datatrans from 1987 to 1991. He has been a Director at Fiskars Oyj Abp since March 9, 2016 and Varma Mutual Pension Insurance Company since January 2015. He is Member of the Boards of the Association of the European Plastic Pipes and Fittings Association. He has been a Director of Keskinäinen Työeläkevakuutusyhtiö Varma since 2015; EHI, European Heating Industries since 2014; The European Plastic Pipes and Fittings Association since 2009 and Procurator-Holding Oy since 2006. Mr. Luomakoski holds an MBA.
Insufficient data for Jyri to compare compensation growth.
Jyri's remuneration is lower than 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 Uponor Oyj management team is less than 2 years, this suggests a new team.
General Counsel & Board Secretary
Executive Vice President of Human Resources
President of Building Solutions for Europe
President of Uponor Infra Ltd
President of Uponor North America
Vice President of Communications
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Uponor Oyj board of directors is less than 3 years, this suggests a new board.
Uponor Oyj provides plumbing, indoor climate, and infrastructure solutions in Europe and North America. The company operates through three segments: Building Solutions – Europe, Building Solutions – North America, and Uponor Infra. It offers drinking water delivery systems, including multilayer and flexible pipe, and hygienic control systems, as well as fittings; ceiling, underfloor, and wall heating and cooling systems; room temperature controls; and radiator connection components. The company also provides industrial floor heating, lawn heating, and floor heating systems, as well as snow and ice melting products; district heating and cooling systems, cooling intake and outfall pipes, ground source heating and cooling systems, and geothermal vaults; plastic barrier pipes, water tanks, insulated water pipes and fittings, and welding machines; waste water systems, including pump chambers, soil treatment/septic tanks, grey water handling systems, biochemical treatment plants, holding tanks, and cottage products; and renovation systems. In addition, it offers pre-insulated pipes, and fittings and joints for heat and water distribution; prefabricated and tailored-made modules for plumbing and heating installations; insulated sewer, pressure sewer, sewer gravity, and pumping systems, as well as chambers, tanks, and grease separators; distribution units, connection boxes, industrial manifolds, and pump groups; gas pipes, cable protection pipes, heat pump systems, and under ground ventilation and exhaust systems; storm water systems; and house, agricultural, and road drainage systems. The company sells its products primarily through wholesalers. Uponor Oyj was founded in 1918 and is based in Vantaa, Finland.
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