Discounted Cash Flow Calculation for OTCPK:MFRV.F using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Minera Frisco. de
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:MFRV.F DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
Minera Frisco. de
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
Minera Frisco. de
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Minera Frisco. de's share price is below the future cash flow value, and at a moderate discount (> 20%).
Minera Frisco. de'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
Minera Frisco. de's
is considered below, and whether this is a fair price.
Price based on past earnings
Minera Frisco. de's earnings available for a low price, and how does
this compare to other companies in the same industry?
Unable to determine if Minera Frisco. de is high growth as no earnings estimate data is available.
Minera Frisco. de's revenue is expected to grow by 9.8% 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.
Minera Frisco. de'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
Metals and Mining
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.
Minera Frisco. de
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
Minera Frisco. de's finances.
The net worth of a company is the difference between its assets and liabilities.
Minera Frisco. de's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Minera Frisco. de's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Minera Frisco. de'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 0.3x 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.
Eng. Alejandro Aboumrad González has been the Chief Executive Officer of Impulsora del Desarrollo y el Empleo en América Latina, S.A.B. de C.V. since September 28, 2009. Eng. Aboumrad González has been the President and Chief Executive Officer of BioFields SAPI de CV since 2005. He has been the President of the Board of Directors of Gondi SA de CV since 2009 and also serves as its Vice President of Strategic Planning. He serves as the Chairman of Executive Committee at Fomento De Construcciones Y Contratas, S.A. He serves as Chief Executive Officer and General Director of Minera Frisco, S.A.B. de C.V. He founded Algenol, LLC in 2009. From 2000 to 2009, he served as the Chief Executive Officer of Empaques Plegadizos Modernos SA de CV, a subsidiary company of Gondi SA de CV. He served as the Chairman of the Board of Fomento de Construcciones y Contratas, S.A. since September 18, 2017 until September 18, 2017. He serves as a Director of Inmuebles Carso, S.A. de C.V. He serves as an Independent Director of Algenol, LLC. He has been External Director of Cementos Portland Valderrivas SA since February 26, 2015. He served as a Propietary Director of Fomento de Construcciones y Contratas, S.A. since January 13, 2015 until September 18, 2017. He has been Director at Impulsora del Desarrollo y el Empleo en América Latina, S.A.B. de C.V. since April 2012. He serves as Director of Minera Frisco, S.A.B. de C.V. Eng. Aboumrad González studied Industrial Engineering in Anahuac University in México City and holds a Master's Degree in Strategic Planning from Universidad Anáhuac.
Insufficient data for Alejandro to compare compensation growth.
Insufficient data for Alejandro to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Minera Frisco, S.A.B. de C.V. engages in the exploration and exploitation of mining lots for the production and sale of gold and silver doré bars. It also produces copper cathode, as well as copper, lead-silver, and zinc concentrates. The company has nine operating mining units in El Coronel, Asientos, El Porvenir, Tayahua, San Felipe, María, San Francisco del Oro, Ocampo, and Concheño, Mexico. Minera Frisco, S.A.B. de C.V. is based in Mexico City, Mexico. Minera Frisco, S.A.B. de C.V. is a subsidiary of Slim Helú Family Trust.
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