Discounted Cash Flow Calculation for NasdaqGM:CVON 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.
NasdaqGM:CVON DCF 1st Stage: Next 5 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.
ConvergeOne Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
ConvergeOne Holdings'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
ConvergeOne Holdings's earnings available for a low price, and how does
this compare to other companies in the same industry?
ConvergeOne Holdings's earnings are expected to grow significantly at over 20% yearly.
ConvergeOne Holdings's revenue is expected to grow by 6.5% 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.
ConvergeOne Holdings'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
ConvergeOne Holdings's finances.
The net worth of a company is the difference between its assets and liabilities.
ConvergeOne Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
ConvergeOne Holdings's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
ConvergeOne Holdings'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.
Low level of unsold assets.
ConvergeOne Holdings has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
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. John A. McKenna, Jr. serves as Chairman and Chief Executive Officer of Convergeone of Annese & Associates, Inc. Mr. McKenna has been the Chairman of the Board and Chief Executive Officer of ConvergeOne, Inc. (also known as ConvergeOne, LLC) since August 18, 2008 and its President since February 22, 2018. He served as Chief Executive Officer of Siemens IT Solutions and Services Inc. Mr. McKenna served as the Chief Executive Officer of Atos IT Solutions and Services Inc. (formerly known as Siemens Business Services Inc.) of Siemens AG until November 10, 2008. He was responsible for all facets of Siemens Business Services, Inc. Mr. McKenna served as the Chief Executive Officer of Entex IT Service Inc. (formerly known as ENTEX Information Services (ENTEX)) from 1993 to 2000 and he was responsible for organizing a major corporate restructure at ENTEX in 1998. Mr. McKenna serves on Siemens Business Services North American Management Board. He served as Senior Executive Vice President of JWP Information Services at JWP, Inc. from 1989 to 1993 and responsible for managing and focusing on optimizing operations and profitability.He served as President of JWP's Network and Integration Services Division. Mr. McKenna joined JWP in 1989 as Vice President of Business Development, responsible for major market acquisitions and he served as Senior Vice President and General Manager of JWP Information Systems from 1990 to 1991, with staff responsibility for all financial, sales and operational functions. Mr. McKenna served as Vice President of Operations of Fisher Macleod Associates for two years. Prior to Fisher Macleod, he served for nine years at International Business Machines (IBM Corporation). Mr. McKenna joined IBM as a Sales Trainee, he rose through the sales organization, eventually gaining responsibility for one of the largest branch operations in New York City before leaving in 1986. He serves as a Member of Advisory Board at M&A Forum LLC and MergerTech Advisors. Mr. McKenna served as a Director of GXS Limited since 2006. He served as a Director of Gxs Corp., GXS Group, Inc., GXS Worldwide, Inc., and GXS, Inc. since 2006. He has been a Director of ConvergeOne, LLC since August 18, 2008. Mr. McKenna holds a B.A. in history from Trinity College (Hartford).
Insufficient data for John to compare compensation growth.
John's remuneration is lower than 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 ConvergeOne Holdings management team is about average.
Chief Financial Officer
President of Field Organization
Chief Technology Officer
Vice President of Sales
Vice President of Corporate Marketing
Vice President of Human Resources
President of Services Organization
Vice President of Program Management
Vice President of Operations & Marketing for Convergeone Technology
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the ConvergeOne Holdings board of directors is less than 3 years, this suggests a new board.
Should You Sell When ConvergeOne Holdings Inc's (NASDAQ:CVON) Insiders Do?
some insider selling over the past three months, with insiders divesting from. … Generally, insiders selling shares in their own firm sends a bearish signal. … A research published in The MIT Press (1998) concluded that stocks following insider selling fell 2.7% compared to the market
ConvergeOne Holdings, Inc. provides collaboration and technology solutions for large and medium enterprises in the United States. The company offers unified communications solutions, including communications applications, such as voice, email, presence, chat/text, and video technologies; voice and text messaging solutions; mobility and bring your own device solutions for business continuity with the seamless connection of mobile, landline, cellular, and Wi-Fi enabled devices; conferencing solutions, as well as streaming and recording, and security services; and software integration services. It also provides customer engagement solutions comprising omni-channel, self-service interactive voice recognition and advanced routing, social media, remote agent, end-to-end business intelligence and analytics, workforce optimization, and integration software and cloud connector solutions; and enterprise networking technology solutions, such as mobile device management, routing and switching technology, wireless, and location service applications. In addition, the company offers data center solutions, including design, procurement, implementation, management, and optimization of data center infrastructure assets, as well as server migration and consolidation services; storage management and data management solutions; and virtualization solutions. Further, it provides cloud solutions in private, C1 Cloud, hybrid, and public cloud environments; end-to-end network and data security solutions; and disaster recovery services and solutions, such as business continuity assessment and planning, network availability and data continuity, and recovery and crisis management, as well as FireStorm POV, an security assessment tool. ConvergeOne Holdings, Inc. is headquartered in Eagan, Minnesota.
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