Discounted Cash Flow Calculation for OTCPK:HLOC 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.
OTCPK:HLOC DCF 1st Stage: Next 10 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
Helo's earnings available for a low price, and how does
this compare to other companies in the same industry?
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Helo has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Tech industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Helo's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Helo's earnings growth to the United States of America market average as no estimate data is available.
Unable to compare Helo's revenue growth to the United States of America market average as no estimate data is available.
Unable to determine if Helo is high growth as no earnings estimate data is available.
Unable to determine if Helo is high growth as no revenue estimate data is available.
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.
While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Helo's filings and announcements here.
Helo'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. Seán McVeigh has been the Chief Executive Officer and President of World Media & Technology Corp. since May 2017. Mr. McVeigh serves as Chief Executive Officer of CellAd Inc., a subsidiary of World Assurance Group Inc. He served as Chief Executive Officer and Director of Power Clouds Inc. Mr. McVeigh is a successful technology entrepreneur and has been operating in the technology sector for over 20 years and has founded and grown a number of technology start-ups. He has served at senior management level in a US multi-national company and in a global 500 company. Prior to CellAd, Mr. McVeigh founded a voice biometric company VoxLoc, which has used its technology to secure online and remote transactions in over 50 countries. Previously, Mr. McVeigh founded Dorkel, a mobile signalling company in 2005. He established Dorkel as a global supplier and sold the business to a US based multinational, Via One where he served as Senior Vice President of Sales and General Manager for Europe. His previous roles included being a business advisor to KKP, a private investment fund in Eastern Europe and successfully launching an online scientific concept communication company. He began his career with BP rising to managing commercial and technical businesses units. He served as a Director of World Assurance Group Inc. He holds an MBA from University College Dublin, an MSc by research from Trinity College Dublin and BA, BAI. (Hons) Mechanical and Manufacturing Engineering from Trinity College Dublin, Ireland.
Seán's compensation has been consistent with company performance over the past year.
Seán'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 average tenure for the Helo management team is less than 2 years, this suggests a new team.
CTO & Chairman
Chief Financial Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Helo board of directors is less than 3 years, this suggests a new board.
Helo Corp., a technology company, provides wearable devices for use in the quantified-self wellness market. The company’s wearable devices and related applications offer its end-users with health-related knowledge acquired through self-tracking. Its products include Helo LX that gathers the wearer’s bio-parameter data; Helo LX+, which offer continuous monitoring of bio-parameters; and HELO Extense, a peripheral device that pairs with smartphone and tracks sugar trends. The company was formerly known as World Technology Corp. and changed its name to Helo Corp. in October 2018. Helo Corp. is based in Miami, Florida.
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