Discounted Cash Flow Calculation for NYSE:CPAC 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.
NYSE:CPAC 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.
Cementos PacasmayoA's share price is below the future cash flow value, and at a moderate discount (> 20%).
Cementos PacasmayoA'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
Cementos PacasmayoA's earnings available for a low price, and how does
this compare to other companies in the same industry?
Cementos PacasmayoA's earnings are expected to grow significantly at over 20% yearly.
Cementos PacasmayoA's revenue is expected to grow by 7.2% 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.
Cementos PacasmayoA'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.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Cementos PacasmayoA's finances.
The net worth of a company is the difference between its assets and liabilities.
Cementos PacasmayoA is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Cementos PacasmayoA's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Cementos PacasmayoA's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is not covered by short term assets, assets are 0.6x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
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.
HumbertoReynaldo Nadal Del Carpio
TENURE AS CEO
Mr. Humberto Reynaldo Nadal Del Carpio has been the Chief Executive Officer of Cementos Pacasmayo SAA since April 2011. In April 2006, Mr. Reynaldo Nadal Del Carpio joined Compañía Minera Ares S.A.C., a subsidiary of Hochschild Mining plc as Corporate Development Manager and served in that position until May 2007. He served as a Business, Administration and Finance Manager at Instituto Libertad y Democracia and Chief Executive Officer of Socosani S.A. He serves as the Chairman of the Board of Directors of Fondo Mi Vivienda. Mr. Reynaldo Nadal Del Carpio serves as a Representative of Cementos Pacasmayo in the General Management of IPSA, Fosfatos and Salmueras. He serves as Independent Director of Ferreycorp S.A.A. He has been Director of Cementos Pacasmayo SAA since March 27, 2008. He has a Bachelor degree in Economics from Universidad del Pacífico and a Master degree in Business Administration from Georgetown University.
Insufficient data for Humberto to compare compensation growth.
Insufficient data for Humberto 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 Cementos PacasmayoA management team is over 5 years, this suggests they are a seasoned and experienced team.
Humberto Reynaldo Nadal Del Carpio
CEO & Director
CFO and VP of Administration & Finance
Head of Investor Relations
Jorge Javier Durand Planas
Corporate Social Responsibility & Human Resources Director
Special Projects Director
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Cementos PacasmayoA board of directors is about average.
Cementos Pacasmayo S.A.A., a cement company, produces, distributes, and sells cement and cement-related materials in the northern region of Peru. The company operates in three segments: Cement, Concrete and Blocks; Quicklime; and Sales of Construction Supplies. It produces cement for various uses, such as residential and commercial construction, and civil engineering; ready-mix concrete used in large construction sites; concrete blocks, such as paving units or paver stones for pedestrian walkways, as well as other bricks for partition walls and concrete blocks for structural and non-structural uses; and cement based products, including assembly gravity walls, beams and vaults, precast beams, sheet piles, seawalls, and piles, as well as bathroom and housing units. The company also produces and distributes quicklime for use in steel, food, fishing, and chemical industries, as well as mining, agriculture, and other industries. In addition, it distributes other construction materials manufactured by third parties, such as steel rebars, cables, and pipes. The company distributes its cement products and other construction materials manufactured by third parties through a network of 247 independent retailers and 394 hardware stores. Cementos Pacasmayo S.A.A. also sells its cement products directly to other retailers, and to private construction companies and government entities. The company was incorporated in 1949 and is headquartered in Lima, Peru. Cementos Pacasmayo S.A.A. is a subsidiary of Inversiones ASPI S.A.
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