Discounted Cash Flow Calculation for OTCPK:SPIW.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:SPIW.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.
SPIE's share price is below the future cash flow value, and at a moderate discount (> 20%).
SPIE'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
SPIE's earnings available for a low price, and how does
this compare to other companies in the same industry?
SPIE's earnings are expected to grow by 10.6% yearly, however this is not considered high growth (20% yearly).
SPIE's revenue is expected to grow by 2.4% 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.
SPIE'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
3/6, 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. Gauthier Louette has been the Chairman of the Board and Chief Executive Officer of SPIE SAS at SPIE Matthew Hall Limited since January 01, 2010 and 2003 respectively. Mr. Louette served as Co-Chief Executive Officer and Head of Operation of SPIE SA. He joined SPIE in 1986 and has spent his entire career with the Group. He serves as an administrator in the French National Federation of Public Works (Fédération Nationale des Travaux Publics), the French National Civil Engineering Federation (Syndicat des Entrepreneurs de Travaux Publics de France) and the French Association of Electrical Engineering Companies (Syndicat des Entreprises de Génie Électrique et Climatique). Mr. Louette is also a commander in the citizen reserve of the French navy. Mr. Louette is a graduate of the École Polytechnique (X81) and ENSTA (École Nationale Supérieure de Techniques Avancées).
Gauthier's compensation has been consistent with company performance over the past year.
Gauthier'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 tenure for the SPIE management team is about average.
Chairman & CEO
Director of Municipality Development
Group Chief Financial Officer
Investor Relations Director
Group Communication Director
Human Resources Director
Chief Operating Officer of SPIE France
Chief Executive Officer of SPIE ICS and Managing Director of Spie Facilities
Chief Executive Officer of SPIE Oil & Gas Services
Chief Executive Officer of SPIE Belgium
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the SPIE board of directors is about average.
SPIE SA operates as a multi-technical services company in the areas of energy and communications. It operates through France; Germany and Central Europe; North Western Europe; and Oil & Gas and Nuclear segments. The company offers electrical, mechanical, heating, ventilation, and air conditioning engineering services; and information and communications technology services comprising installation, upgradation, and management of voice, data, and image communications systems. It also engages in the deployment of 4G and 5G telephony networks; the deployment of fiber and the installation of charging infrastructures for electric vehicles; and building maintenance and facility management services. In addition, the company designs, builds, and maintains electrical, security, and fire protection systems for buildings; designs, installs, maintains, and repairs building-related systems for retail clients; provides installation services, including electro-technical work, heating system, air conditioning, climate control and security; and offers acoustic control, air leakage test, and infrared thermography services on the French electronuclear. Further it supplies and services systems for electrical power, gas, water, and telecommunications networks; designs, plans, and maintains fire detection, burglar alarm, and access control systems, as well as smoke and heat extraction systems; designs and delivers automated industrial equipment for material handling; installs, manages, and maintains public lighting, traffic control systems, and video surveillance; and designs, integrates, and maintains digital infrastructure. Additionally, the company engages in commissioning, prevention, maintenance, and repairing of industrial instrumentation devices. It serves businesses in the tertiary, manufacturing, and infrastructure sectors; oil and gas companies; and local and government authorities. SPIE SA is headquartered in Cergy-Pontoise, France.
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