The Castle Group, Inc., through its subsidiaries, operates in the hotel and resort management industry in the state of Hawaii, New Zealand, and the Commonwealth of Saipan under the Castle Resorts and Hotels trade name.
The last earnings update was 426 days ago.
Discounted Cash Flow Calculation for OTCPK:CAGU 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:CAGU 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.
Castle Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
Castle Group's share price is below the future cash flow value, and 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
Castle 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 Castle 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 Hospitality industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Castle Group's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Castle Group's earnings growth to the United States of America market average as no estimate data is available.
Unable to compare Castle Group's revenue growth to the United States of America market average as no estimate data is available.
Unable to determine if Castle Group is high growth as no earnings estimate data is available.
Unable to determine if Castle 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 Castle Group's filings and announcements here.
Castle 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
1/6, 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. Alan R. Mattson has been Chief Executive Officer of Castle Resorts & Hotels, Inc. since August 2018. Mr. Mattson has been the Chief Executive Officer of Castle Group, Inc. since June 28, 2018 and served as its Chief Operating Officer since June 2007. Mr. Mattson served as the President and Chief Operating Officer of Castle Resorts & Hotels Inc. from 2005 to August 2018. Mr. Mattson served as Senior Vice President of Sales & Marketing of Castle Group Inc. He served as Vice President of sales and marketing for Dollar Rent a Car and was responsible for all sales and marketing efforts for Hawaii, Asia and the Pacific. He began his tourism and hospitality career with Hilton Hotels Corp., and prior to joining Castle, he spent 10 years in the car rental industry. Prior to Dollar Rent a Car, he was Director of marketing for Avis Car Rental, operating out of the Avis worldwide headquarters in New York. Mr. Mattson has over 30 years of senior level hospitality and travel industry experience. He joined Castle Group Inc. in September 1999 and served as its President since July, 2005. Mr. Mattson also has seven years of sales and marketing experience with Hilton Hotels Corporation, performing in a variety of senior level sales and marketing positions in Hawaii and the domestic United States. Mr. Mattson serves as Director of Castle Group Inc. and Pacific Historic Parks. He received his bachelor's degree in marketing from San Diego State University.
Alan's compensation has been consistent with company performance over the past year, both up more than 20%.
Insufficient data for Alan 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 average tenure for the Castle Group management team is less than 2 years, this suggests a new team.
CEO & Director
Chief Financial Officer
Secretary & Director
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Castle Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors
CEO & Director
Secretary & Director
Who owns this company?
Recent Insider Trading
No 3 month individual insider trading information.
The Castle Group, Inc., through its subsidiaries, operates in the hotel and resort management industry in the state of Hawaii, New Zealand, and the Commonwealth of Saipan under the Castle Resorts and Hotels trade name. It manages luxury and mid-range resort condominiums and hotels on various islands in the state of Hawaii; and a property located in New Zealand. The company also provides reservations staffing and operation, advertising, sales and marketing, and accounting services to property owners. The Castle Group, Inc. was incorporated in 1981 and is headquartered in Honolulu, Hawaii.
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