Discounted Cash Flow Calculation for OTCPK:ATXG 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:ATXG DCF 1st Stage: Next 5 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
Addentax Group'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 Addentax Group 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 Commercial Services industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Addentax Group's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Addentax Group's earnings growth to the United States of America market average as no estimate data is available.
Unable to compare Addentax Group's revenue growth to the United States of America market average as no estimate data is available.
Unable to determine if Addentax Group is high growth as no earnings estimate data is available.
Unable to determine if Addentax Group 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 Addentax Group's filings and announcements here.
Addentax Group'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. Hong Zhida has been Chairman, Chief Executive Officer, President, Chief Financial Officer, Treasurer and Secretary of Addentax Group Corp. since March 10, 2017. From September 2013 to May 2014, Mr. Zhida served as Head of Membership Department of the Guangzhou Haifeng Chamber of Commerce. In that position he was responsible for the membership management of the institution. He served as the Director of China Huiying Joint Supply Chain Group Co.Ltd. since June 2014. He was responsible for assisting the China Huiying's chairman to plan development strategy. Mr. Zhida received his Bachelor's Degree in Electronic Information Science and Technology from Sun Yat-sen University in July 2013.
Insufficient data for Hong to compare compensation growth.
Hong's remuneration is lower than average for companies of similar size in United States of America.
Addentax Group Corp. does not have significant operations. Previously, it was involved in the production of images on multiple surfaces, including glass, leather, plastic, ceramic, textile, and others using three-dimensional sublimation vacuum heat transfer machines. The company was founded in 2014 and is based in Shenzhen, China.
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