Discounted Cash Flow Calculation for OTCPK:GTOF.F 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.
OTCPK:GTOF.F 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
Gemalto's earnings available for a low price, and how does
this compare to other companies in the same industry?
Gemalto's earnings are expected to grow significantly at over 20% yearly.
Gemalto'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.
Gemalto'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. Philippe Vallée has been Chief Executive Officer of Gemalto NV since September 1, 2016 and has been its Executive Director since September 1, 2016. Mr. Vallée served as the Chief Operating Officer of Gemalto NV from January 2014 to August 2016. He served as an Executive Vice President of Telecommunications Business Unit at Gemalto NV since 2007 until 2013. He oversees the strategy and new product development and introductions for the Telecommunication businesses as well as the innovation process and Intellectual property management for the Group. Mr. Vallée has 15 years of experience in the smart card industry and has served in various marketing, product management and sales capacities. He served as the Chief Technology Officer and Executive Vice President of Product and Marketing at Gemplus International SA since January 9, 2006. Mr. Vallée served as an Executive Vice President of Telecom Business Unit at Gemplus International SA since February 2002. He is also employed at GemVentures. Mr. Vallée served as the Vice-President, Marketing of the Telecom Business Unit from May 2001 to February 2002. He was based in Singapore as an Executive Vice President of Gemplus Technologies Asia and headed the marketing and development activities, as well as professional services operations of Gemplus Asia Pacific. Prior to that, he served as a Product Manager for the first generation of GSM mobile phones for Matra Communications (now Lagardère Group) in France from 1989 to 1992. He serves as a Director of Solomio Corporation. He has been a Director of Macheen, Inc. since September 2012. Mr. Vallée holds has a Bachelor's degree in Electronics and Telecommunications Engineering and a Master of Science in Marketing Management from ESSEC.
Philippe's compensation has increased in line with Gemalto recently becoming profitable.
Philippe'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 Gemalto management team is about average.
CEO & Executive Director
Chief Financial Officer
Executive Vice President of Central Operations
Chief Technology Officer
Head Of Investor Relations
Executive VP of Legal & Company Secretary
Executive Vice President of Corporate Communication
Chief Marketing Officer
Executive Vice President of Human Resources
Executive Vice President of Corporate Projects & France
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Gemalto board of directors is about average.
Gemalto N.V. provides digital security products and services worldwide. The company operates through two segments, Identity, IoT & Cybersecurity; and Smartcards & Issuance. It offers chip cards, mobile financial services, and contactless payment solutions; secure electronic identity documents, such as ePassports and badges; multi-factor online authentication and transaction solutions, as well as a range of support services; and data encryption systems and software monetization solutions to financial institutions, retailers, mass transit authorities, and government agencies and service providers, as well as enterprises of various sizes. The company also sells subscriber authentication and rights management solutions to Pay TV service providers. In addition, it offers various solutions for mobile network operators, including subscriber identification modules and universal integrated circuit cards, and back-office platforms; and services comprising roaming optimization, mobile payment and marketing, personal data management, and trusted services management. Further, the company provides industrial solutions that enable machine-to-machine (M2M) data exchange through hardware modules and operating software, which connect machines to digital networks, as well as cloud-based M2M application enablement and late-stage personalization platforms to enhance operations, productivity, and efficiency in the Internet of things for the utilities, health, and automotive markets. Additionally, it licenses its intellectual property and provides security and other technology advisory services. The company was formerly known as Axalto Holding N.V. and changed its name to Gemalto N.V. in June 2006. Gemalto N.V. was incorporated in 2002 and is headquartered in Amsterdam, the Netherlands.
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