Deltic Timber Corporation, a natural resources company, engages in growing and harvesting timber; and manufacturing and marketing lumber and medium density fiberboards (MDF) in the United States.
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
Deltic Timber's earnings available for a low price, and how does
this compare to other companies in the same industry?
Deltic Timber is overvalued based on earnings compared to the US Forestry industry average.
Deltic Timber is overvalued based on earnings compared to the US market.
Price based on expected Growth
Deltic Timber's expected growth come at a high price?
Unable to calculate PEG ratio for Deltic Timber, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on
Deltic Timber is overvalued based on assets compared to the US Forestry industry average.
Discounted cash flow (2 Stage Free Cash Flow to Equity)
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is
limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($1,200,016,205).
The risk free rate of
2.47% is from the 10 year government bond rate in
The bottom-up beta is estimated by analysing other companies in the same
The Equity Risk Premium is calculated by subtracting the risk free rate from
the market return premium (7.53%) (source: Buffet).
The dividend discount model is automatically used for companies in the
following industries: Banks, Insurance, Real Estate Investment Trusts (REITs),
Diversified Financial Services and Capital Markets.
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 Forestry industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Deltic Timber's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Deltic Timber's earnings growth to the US market average as no estimate data is available.
Unable to compare Deltic Timber's revenue growth to the US market average as no estimate data is available.
Annual Growth Rates Comparison
Analysts growth expectations
High Growth Checks
Unable to determine if Deltic Timber is high growth as no earnings estimate data is available.
Unable to determine if Deltic Timber 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.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
Unable to establish if Deltic Timber will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
Deltic Timber'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. John D. Enlow, Sr., has been the Chief Executive Officer, President and Director at Deltic Timber Corporation since March 8, 2017. Mr. Enlow has more than 25 years of experience in the forest resources industry. He served as Vice President of Real Estate and Southern Timberlands at Weyerhaeuser Co. from February 24, 2014 to 2016, where he was responsible for setting business strategy, developing talent and overseeing forest operations as well as real estate sales, development and strategic acquisitions. He joined Weyerhaeuser from Rayonier, where he served as Director of that Atlantic and Northern timberlands regions. He served as Region Director of Atlantic at Rayonier since 2007, with responsibilities in the Northern region added in 2012. Prior to that, he served as Manager of Business Development from 2005 to 2007, Procurement Operations Manager from 2001 to 2005, Chip Procurement Manager from 1999 to 2001, Manager of Operations Analysis from 1997 to 1999 and Manager of East Area. Before joining Rayonier, he held roles in sales, finance and forestry at Union Camp Corporation. He holds a Bachelor of Science degree from Mississippi State University and an MBA from Brenau University in Kings Bay, Ga. Mr. Enlow also is a graduate of Wharton's Executive Strategy program.
has a new CEO, we can't show their compensation history.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Deltic Timber management team is about average.
VP, General Counsel & Secretary
Vice President of Real Estate
Vice President of Wood Products
Director & Advisor to the Board
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Deltic Timber board of directors is over 10 years, this suggests they are a seasoned and experienced board.
How Does Investing In Deltic Timber Corporation (NYSE:DEL) Impact Your Portfolio?
View our latest analysis for Deltic Timber An interpretation of DEL's beta Deltic Timber's beta of 0.91 indicates that the stock value will be less variable compared to the whole stock market. … DEL’s beta indicates it is a stock that investors may find valuable if they want to reduce the overall market risk exposure of their stock portfolio. … An asset-heavy company tends to have a higher beta because the risk associated with running fixed assets during a downturn is highly expensive.
Does Deltic Timber Corporation's (NYSE:DEL) PE Ratio Signal A Selling Opportunity?
Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for DEL Price per share = $88.01 Earnings per share = $0.775 ∴ Price-Earnings Ratio = $88.01 ÷ $0.775 = 113.5x 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 accidentally compared lower growth firms with DEL, then DEL’s P/E would naturally be higher since investors would reward DEL’s higher growth with a higher price. … Alternatively, if you inadvertently compared riskier firms with DEL, DEL’s P/E would again be higher since investors would reward DEL’s lower risk with a higher price as well.
Are Deltic Timber Corporation's (NYSE:DEL) Interest Costs Too High?
How does DEL’s operating cash flow stack up against its debt? … Additionally, DEL has generated cash from operations of $43.6M in the last twelve months, resulting in an operating cash to total debt ratio of 0.18x, indicating that DEL’s operating cash is not sufficient to cover its debt. … DEL’s cash flow coverage indicates it could improve its operating efficiency in order to meet demand for debt repayments should unforeseen events arise.
Does Deltic Timber Corporation's (DEL) 58.8% Earnings Growth Make It An Outperformer?
Below, I will assess Deltic Timber Corporation's (NYSE:DEL) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. … Though Deltic Timber's past data is helpful, it is only one aspect of my investment thesis. … There may be factors that are influencing the industry as a whole, thus the high industry growth rate over the same time period.
Why Deltic Timber Corporation's (DEL) ROE Of 3.78% Does Not Tell The Whole Story
See our latest analysis for DEL Peeling the layers of ROE – trisecting a company’s profitability Return on Equity (ROE) weighs DEL’s profit against the level of its shareholders’ equity. … ROE can be broken down into three different 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 NYSE:DEL Last Perf Nov 21st 17 Essentially, profit margin shows how much money the company makes after paying for all its expenses.
Deltic Timber Corporation, a natural resources company, engages in growing and harvesting timber; and manufacturing and marketing lumber and medium density fiberboards (MDF) in the United States. The company’s Woodlands segment harvests pine and hardwood pulpwood for sale to third parties for use in the manufacture of paper products; and provides timberland management services, such as harvesting and thinning operations, reforestation, cull timber removal programs, and introducing genetically improved seedlings. This segment also leases oil and gas, hunting land, and other rights on its timberlands; and provides harvest planning, silvicultural improvement, and maintenance works for timberlands. This segment owns approximately 530,000 acres of timberland primarily in Arkansas and north Louisiana. Its Manufacturing segment owns and operates two sawmills that manufacture and sell various softwood lumber products, such as dimension lumber, boards, and timbers primarily to wholesale distributors, large retailers, lumber treaters, industrial accounts, and truss manufacturers for use in residential construction, roof trusses, remanufactured products, and laminated beams. This segment also produces wood chips, shavings, sawdust, and bark as by-products. In addition, the Manufacturing segment manufactures and markets MDF under the Solidium trade name for use in furniture, kitchen cabinets, laminate flooring, store fixtures, door parts, and moldings. This segment sells MDF to industrial distributors, wholesalers, retailers, and manufacturers. The company’s Real Estate segment develops and markets residential lots for homebuilders and individuals; and commercial sites for developers and businesses, as well as sells undeveloped acreage. It also leases retail and office space to third parties; resells existing homes; and operates a country club. Deltic Timber Corporation was founded in 1996 and is headquartered in El Dorado, Arkansas.
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