Discounted Cash Flow Calculation for OTCPK:AMEN 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:AMEN DCF 1st Stage: Next 10 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
AMEN Properties's earnings available for a low price, and how does
this compare to other companies in the same industry?
AMEN Properties's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Unable to determine if AMEN Properties 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.
AMEN Properties'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
Oil and Gas
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
5/6, 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. Kris L. Oliver has been the Chief Executive Officer AMEN Properties Inc. since March 2009 and has been its Secretary since March 7, 2007. Mr. Oliver served as the Chief Financial Officer of AMEN Properties Inc., since March 7, 2007 until January 2010. Mr. Oliver served as the Chief Financial Officer of ChooseEnergy.com Inc. Mr. Oliver served as the Chief Financial Officer Priority Power Management, Ltd. He has been Senior Advisor with TPI involved with business process and technology sourcing projects for several major corporations. He held a variety of senior management positions in the airline travel and transportation industry during his 13 years at American Airlines and Sabre Holdings, Inc. He has more than 20 years of experience in strategy development, business-to-business and business-to-consumer Internet marketing, product development and finance and accounting. His experience in the evolution of Internet marketing is helping accelerate recognition of Choose Energy as the leading brand among energy portals. He began his professional career in the Audit Practice of Arthur Andersen, where he was responsible for conducting audits of public companies in several industries. He has a significant experience in the areas of financial planning, public accounting, marketing, business development, and business strategy. Mr. Oliver holds an MBA from The University of Texas at Austin, a BBA in Accounting from Abilene Christian University, and is a Certified Public Accountant.
Insufficient data for Kris to compare compensation growth.
Insufficient data for Kris 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 AMEN Properties management team is over 5 years, this suggests they are a seasoned and experienced team.
CEO & Corporate Secretary
President & Executive Director
Chief Operating Officer and President of W Power & Light
Managing Principal of Priority Power
Vice President of Priority Power
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the AMEN Properties board of directors is over 10 years, this suggests they are a seasoned and experienced board.
AMEN Properties, Inc. owns oil and gas royalty and working interests in various oil and gas properties in the United States. It owns an indirect interest in oil gas and gas royalties through its ownership of 33% of the membership interests of SFF Royalty, LLC; and controls oil and gas working interests owned by SFF Production, LLC through its ownership of 81.1% of the membership interests. The company was formerly known as Crosswalk.com, Inc. and changed its name to AMEN Properties, Inc. in October 2002. AMEN Properties, Inc. was founded in 1993 and is based in Richardson, Texas.
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