Discounted Cash Flow Calculation for NasdaqGS:HIBB 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:HIBB 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.
Hibbett Sports's share price is below the future cash flow value, and at a moderate discount (> 20%).
Hibbett Sports'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
Hibbett Sports's earnings available for a low price, and how does
this compare to other companies in the same industry?
Hibbett Sports's earnings are expected to grow by 7.5% yearly, however this is not considered high growth (20% yearly).
Hibbett Sports's revenue is expected to grow by 0.5% 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.
Hibbett Sports'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. Jeffry O. Rosenthal, also known as Jeff, has been Chief Executive Officer of Hibbett Sports, Inc. since March 2010, President since February 2009 and as its Director since October 2013. He serves as the Chief Executive Officer and President of Hibbett Sporting Goods, Inc. since March 2010 and February 2009 respectively. He served as Vice President of Merchandising at Hibbett Sporting Goods, Inc. from August 1998 to February 2009 and its Chief Operating Officer from February 2009 to March 2010. Prior to Hibbett Sporting Goods, Inc. Mr. Rosenthal served as a Vice President of Divisional Merchandise Manager for Apparel at Champs Sports, a division of Venator Group, Inc. from 1981 to 1998. He worked at Champs Sports for 17 years. He has been involved in the industry since 1981. He serves as the Vice Chairman/Treasurer of the National Sporting Goods Association. Mr. Rosenthal has been a Director of Hibbett Sporting Goods, Inc. since October 2013.
Jeff's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
Jeff's remuneration is about 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 tenure for the Hibbett Sports management team is about average.
Senior Vice President of Operations
Senior VP & Chief Merchant
Interim Chief Financial Officer
Senior VP & Chief Information Officer
VP & General Counsel
Vice President of HR & LP
Senior Vice President
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Hibbett Sports board of directors is about average.
Investors Who Bought Hibbett Sports (NASDAQ:HIBB) Shares Five Years Ago Are Now Down 67%
(NASDAQ:HIBB) shareholders should be happy to see the share price up 21% in the last quarter. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During the five years over which the share price declined, Hibbett Sports's earnings per share (EPS) dropped by 10.0% each year.
Based On Its ROE, Is Hibbett Sports, Inc. (NASDAQ:HIBB) A High Quality Stock?
To keep the lesson grounded in practicality, we'll use ROE to better understand Hibbett Sports, Inc. … That means that for every $1 worth of shareholders' equity, it generated $0.096 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Is Hibbett Sports, Inc. (NASDAQ:HIBB) Better Than Average At Deploying Capital?
Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.
An Intrinsic Calculation For Hibbett Sports, Inc. (NASDAQ:HIBB) Shows It's 44.22% Undervalued
Today, I will calculate the stock's intrinsic value. … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model
Hibbett Sports, Inc.'s (NASDAQ:HIBB) Earnings Dropped -15%, Did Its Industry Show Weakness Too?
For investors with a long-term horizon, examining earnings trend over time and against industry peers is more insightful than looking at an earnings announcement in one point in time. … HIBB's trailing twelve-month earnings (from 03 November 2018) of US$32m has. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of -15%, indicating the rate at which HIBB is growing has slowed down
Do You Like Hibbett Sports Inc (NASDAQ:HIBB) At This P/E Ratio?
We'll look at Hibbett Sports Inc's (NASDAQ:HIBB) P/E ratio and reflect on what it tells us about the company's share price. … Hibbett Sports has a P/E ratio of 8.82, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
How Much is Hibbett Sports Inc's (NASDAQ:HIBB) CEO Getting Paid?
This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Jeff Rosenthal's Compensation Compare With Similar Sized Companies. … According to our data, Hibbett Sports Inc has a market capitalization of US$355m, and pays its CEO total annual compensation worth US$1m.
Hibbett Sports Inc (NASDAQ:HIBB) Delivered A Weaker ROE Than Its Industry
We'll use ROE to examine Hibbett Sports Inc (NASDAQ:HIBB), by way of a worked example. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.11 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
What Should You Know About Hibbett Sports Inc's (NASDAQ:HIBB) Capital Returns?
and want a simplistic look at the return on Hibbett Sports Inc (NASDAQ:HIBB) stock. … Your return is tied to HIBB’s ability to do this because the amount earned is used to invest in opportunities to grow the business or payout dividends, which are the two sources of return on investment. … Thus, to understand how your money can grow by investing in Hibbett Sports, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)
Should You Be Tempted To Buy Hibbett Sports Inc (NASDAQ:HIBB) Because Of Its PE Ratio?
Although some investors may jump to the conclusion that this is a great buying opportunity, understanding the assumptions behind the P/E ratio might change your mind. … I will deconstruct the P/E ratio and highlight what you need to be careful of when using the P/E ratio … See our latest analysis for Hibbett Sports
Hibbett Sports, Inc., together with its subsidiaries, engages in the retail of athletic-inspired fashion products through its stores. Its stores offer a range of merchandise, including athletic footwear, athletic and fashion apparel, sports equipment, and related accessories. The company also operates hibbett.com and citygear.com e-commerce Websites. As of February 2, 2019, it operated 1,163 stores consisting of 1,025 Hibbett stores and 138 City Gear stores in 35 states of the United States. Hibbett Sports, Inc. was founded in 1945 and is headquartered in Birmingham, Alabama.
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