Discounted Cash Flow Calculation for NYSE:ICL 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 use
analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
NYSE:ICL DCF 1st Stage: Next 5 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
Israel Chemicals's earnings available for a low price, and how does
this compare to other companies in the same industry?
Israel Chemicals's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Israel Chemicals's revenue is expected to grow by 4.1% 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.
Israel Chemicals'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
6/6, 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
Israel Chemicals's finances.
The net worth of a company is the difference between its assets and liabilities.
Israel Chemicals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Israel Chemicals's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Israel Chemicals'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 covered by short term assets, assets are 1.1x 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.
TENURE AS CEO
Mr. Raviv Zoller serves as the President of Israel Chemicals Limited since 2018 and Chief Executive Officer since May 14, 2018. Mr. Zoller serves as the Chief Executive Officer of Direct Insurance at Zur Shamir Holdings Ltd. and Direct Insurance - Financial Investments Ltd. Mr. Zoller has been the Chief Executive Officer at I.D.I. Insurance Company Ltd. since May 2008. He served as the Chief Executive Officer and President of Ness Technologies Inc., from June 2001 to March 16, 2007 and also served as its Principal Financial Officer and Principal Accounting Officer. From October 1999 to May 2001, he served as the Chief Financial Officer of Ness Technologies Inc. He founded Apex-Mutavim and also served as its Partner from 1994 to 1998. From 1991 to 1999, he was a Partner at Zoller, Radiano and Co. He has been the Chairman of I.D.I Issues (2010) Ltd. since June 19, 2011. He serves as the Chairman of the Board of Directors at Artemis Investments Ltd. He served as the Chairman and Director of I.D.I. Insurance Company Ltd. He has been a Director of Mentor Graphics Development Services (Israel) Limited since July 2007. He serves as Director of The Zinman College of Physical Education and Sport Sciences at the Wingate Institute and the Ethiopian National Project. He served as Director at Alliance Tire Company (1992) Ltd. He served as a Director of Ness Technologies Inc. from August 2004 to June 12, 2007. He is a Certified Public Accountant licensed in Israel. He holds a B.A. in Economics and Accounting from Tel Aviv University, where he also holds Master’s Degree in Economics while serving as a Faculty Member.
Insufficient data for Raviv to compare compensation growth.
Insufficient data for Raviv 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 tenure for the Israel Chemicals management team is about average.
Executive Chairman of the Board
Chief Financial Officer
Chief Operating Officer
President of Innovative Ag Solutions Division
President & CEO
Head of Investor Relations
Head of Global External Communications
Executive VP of Global Human Resources
Senior Vice President of ICL Information Technology
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Israel Chemicals board of directors is less than 3 years, this suggests a new board.
Israel Chemicals Ltd. operates as a specialty minerals company worldwide. The company operates through two segments, Essential Minerals and Specialty Solutions. The company extracts potash from the Dead Sea; mines and produces potash, salt, and Polysulphate; and produces, markets, and sells pure magnesium and magnesium alloys, as well as produces dry carnallite and related by-products, including chlorine and sylvinite. It also mines and processes phosphate rock; produces sulphuric acid, fertilizer-grade phosphoric acid, and phosphate fertilizers; manufactures phosphate-based food additives for livestock; and produces water soluble specialty fertilizers, liquid and soluble fertilizers, and controlled-release fertilizers. In addition, the company produces bromine and bromine-based compounds; various grades of potassium chloride, salt, magnesium chloride, and magnesia products; and phosphorous-based flame retardants and additional phosphorus-based products. Further, it develops, produces, markets, and sells a range of acids and specialty phosphates for various applications in metal and water treatment, paint and coating, cleaning material, oral hygiene, carbonated drinks, and asphalt modification industries; develops and produces functional food ingredients and phosphate additives, which provide texture and stability solutions for the processed meat, poultry, seafood, dairy, beverage, and baked goods markets; and produces milk and whey proteins for the food ingredients industry, as well as provides blended and integrated solutions based on dairy proteins and phosphate additives. The company sells its products through marketing companies, agents, and distributors. Israel Chemicals Ltd. was founded in 1968 and is headquartered in Tel Aviv, Israel.
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