Discounted Cash Flow Calculation for NasdaqGS:SENE.A 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.
NasdaqGS:SENE.A 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.
Seneca Foods's share price is below the future cash flow value, and at a moderate discount (> 20%).
Seneca Foods'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
Seneca Foods's earnings available for a low price, and how does
this compare to other companies in the same industry?
Seneca Foods's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if Seneca Foods 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.
Seneca Foods'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. Kraig H. Kayser has been the Chief Executive Officer and President of Seneca Foods Corp. since 1993. Mr. Kayser served as Chief Financial Officer at Seneca Foods Corp. from 1991 to 1993 and as its Acting Chief Financial Officer from May 24, 2012 to June 11, 2012. Prior to joining Seneca Foods Corporation in 1991, Mr. Kayser served as Vice President of J.P. Morgan Investment Management. He has been an Independent Director of Moog Inc. since 1998. He has been a Director for Seneca Foods Corp. since 1985. He served as a Director of Signature Fruit Company LLC. Mr. Kayser holds a BA from Hamilton College and an M.B.A degree from Cornell University.
Kraig's compensation has increased whilst company is loss making.
Kraig'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 Seneca Foods management team is over 5 years, this suggests they are a seasoned and experienced team.
Executive VP & COO
Senior Vice President of Sales & Marketing
Jeffrey Van Riper
VP, Corporate Controller
Chief Information Officer and Senior VP of Technology & Planning
Senior VP & Chief Administrative Officer
General Counsel & Assistant Secretary
Vice President of Human Resources
Senior Vice President of Logistics
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Seneca Foods board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Does The Seneca Foods Corporation (NASDAQ:SENE.A) Share Price Tend To Follow The Market?
Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.
Seneca Foods Corporation (NASDAQ:SENE.A): Time For A Financial Health Check
While small-cap stocks, such as Seneca Foods Corporation (NASDAQ:SENE.A) with its market cap of US$284m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.
What Kind Of Risk Should You Expect For Seneca Foods Corporation (NASDAQ:SENE.A)?
Volatility is considered to be a measure of risk in modern finance theory. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.
Is Seneca Foods Corporation's (NASDAQ:SENE.A) PE Ratio A Signal To Sell For Investors?
and want to begin learning the link between Seneca Foods Corporation (NASDAQ:SENE.A)’s fundamentals and stock market performance. … Seneca Foods Corporation (NASDAQ:SENE.A) is currently trading at a trailing P/E of 64.5x, which is higher than the industry average of 19.2x. … Although some investors may jump to the conclusion that you should avoid the stock or sell if you own it, understanding the assumptions behind the P/E ratio might change your mind.
With An ROE Of 0.95%, Has Seneca Foods Corporation's (NASDAQ:SENE.A) Management Done Well?
See our latest analysis for Seneca Foods Breaking down ROE — the mother of all ratios Return on Equity (ROE) weighs Seneca Foods’s profit against the level of its shareholders’ equity. … Since Seneca Foods’s return does not cover its cost, with a difference of -11.37%, this means its current use of equity is not efficient and not sustainable. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NasdaqGS:SENE.A Last Perf Mar 31st 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management.
Is It Time To Sell Seneca Foods Corporation (NASDAQ:SENE.A) Based Off Its PE Ratio?
Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for SENE.A Price per share = $30.25 Earnings per share = $0.418 ∴ Price-Earnings Ratio = $30.25 ÷ $0.418 = 72.3x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … For example, if you inadvertently compared riskier firms with SENE.A, then investors would naturally value SENE.A at a higher price since it is a less risky investment. … Similarly, if you accidentally compared lower growth firms with SENE.A, investors would also value SENE.A at a higher price since it is a higher growth investment.
What You Must Know About Seneca Foods Corporation's (NASDAQ:SENE.A) Financial Strength
How does SENE.A’s operating cash flow stack up against its debt? … Additionally, SENE.A has produced $24.3M in operating cash flow in the last twelve months, resulting in an operating cash to total debt ratio of 6.54%, indicating that SENE.A’s operating cash is not sufficient to cover its debt. … For SENE.A, the ratio of 1.42x suggests that interest is not strongly covered, which means that lenders may be more reluctant to lend out more funding as SENE.A’s low interest coverage already puts the company at higher risk of default.Next Steps: At its current level of cash flow coverage, SENE.A has room for improvement to better cushion for events which may require debt repayment.
With An ROE Of 1.09%, Has Seneca Foods Corporation's (SENEA) Management Done A Good Job?
Since SENE.A’s return does not cover its cost, with a difference of -9.07%, this means its current use of equity is not efficient and not sustainable. … ROE can be split up into three useful ratios: net profit margin, asset turnover, and financial leverage. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NasdaqGS:SENE.A Last Perf Dec 1st 17 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient SENE.A is with its cost management.
Seneca Foods Corporation provides packaged fruits and vegetables in the United States and internationally. It offers canned, frozen, and bottled produce; and snack chips and other food products under the private label, as well as under various national and regional brands that the company owns or licenses, including Seneca, Libby’s, Aunt Nellie’s, READ, Green Valley, Cherryman, and Seneca Farms. The company also packs Green Giant, Le Sueur, and other brands of canned vegetables, as well as selected Green Giant frozen vegetables for B&G Foods North America under a contract packing agreement. In addition, it is involved in the sale of cans and ends, as well as trucking and aircraft operations. The company offers its products to grocery outlets, including supermarkets, mass merchandisers, limited assortment stores, club stores, and dollar stores; and food service distributors, industrial markets, other food packagers, and export customers in 90 countries, as well as to the federal, state, and local governments for school and other feeding programs. Seneca Foods Corporation was founded in 1949 and is headquartered in Marion, New York.
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