Misc Industrial & Commercial Machinery & Equipment
Enerpac Tool Group Corp. manufactures and sells a range of industrial products and solutions in the United States, the United Kingdom, Germany, Australia, Canada, China, Saudi Arabia, Brazil, and internationally. It operates through Industrial Tools & Services (IT&S) and Other segments. The IT&S segment designs, manufactures, and distributes branded hydraulic and mechanical tools; and provides services and tool rentals to the infrastructure, industrial maintenance, repair and operations, oil and gas, mining, alternative and renewable energy, civil construction, and other markets. It also offers branded tools and engineered heavy lifting technology solutions, and hydraulic torque wrenches; maintenance and manpower services; high-force hydraulic and mechanical tools, including cylinders, pumps, valves, and specialty tools; and bolt tensioners and other miscellaneous products. This segment markets its branded tools and services primarily under the Enerpac, Hydratight, Larzep, and Simplex brands. The Other segment designs and manufactures synthetic ropes and biomedical textiles. The company was formerly known as Actuant Corporation and changed its name to Enerpac Tool Group Corp. in January 2020. Enerpac Tool Group Corp. was incorporated in 1910 and is headquartered in Menomonee Falls, Wisconsin.
Discounted Cash Flow Valuation of Enerpac Tool Group Corp
Growth
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Discount
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Multiple
g\r | +10% | +11% | +12% | +13% | +14% |
---|---|---|---|---|---|
0% | 10 | 9 | 8 | 8 | 7 |
+1% | 11 | 10 | 9 | 8 | 8 |
+2% | 13 | 11 | 10 | 9 | 8 |
+3% | 14 | 13 | 11 | 10 | 9 |
+4% | 17 | 14 | 12 | 11 | 10 |
Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
---|---|---|---|---|---|---|---|---|---|---|---|---|
FCF | $73.77M | $66.12M | $59.26M | $53.11M | $47.6M | $42.67M | $38.24M | $34.27M | $30.72M | $27.53M | $24.67M | $246.7M |
DCF | $57.5M | $44.81M | $34.92M | $27.22M | $21.21M | $16.53M | $12.88M | $10.04M | $7.826M | $6.099M | $60.99M | |
Value | $300M |
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
Years | 08-2015 | 08-2016 | 08-2017 | 08-2018 | 08-2019 | 08-2020 | 08-2021 | 08-2022 | 08-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Net Margin | 1.6% | -9.2% | -6% | -1.8% | -38% | 0.15% | 7.2% | 2.7% | 7.8% | 12% |
ROA | 3.3% | -6.9% | -3.3% | 1.2% | 4.2% | 2.9% | 6.2% | 4% | 11% | 15% |
ROE | 3% | -20% | -13% | -3.9% | -83% | 0.2% | 9.2% | 4.9% | 14% | 21% |
The average Net Margin over the past 5 years is -3.67%.
The trend of Net Margin over the past 5 years is +5.07%.
The average ROA over the past 5 years is +4.95%.
The trend of ROA over the past 5 years is +1.48%.
The average ROE over the past 5 years is -9.66%.
The trend of ROE over the past 5 years is +10.36%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
Years | 08-2015 | 08-2016 | 08-2017 | 08-2018 | 08-2019 | 08-2020 | 08-2021 | 08-2022 | 08-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Debt FCF | 5.56 | 6.19 | 9.98 | 6.63 | 12.08 | 42.89 | 4.08 | 4.75 | 3.16 | 3.40 |
Debt Equity | 0.88 | 1.16 | 1.19 | 1.01 | 1.56 | 0.71 | 0.42 | 0.65 | 0.67 | 0.74 |
MIN | ||||||||||
Graham Stability | - | - | -250% | - | - | - | - | - | 100% | -250% |
The Debt/FCF trailing twelve month is 3.40.
The trend of Debt/FCF over the past 5 years is -2.23.
Graham’s Stability measure stands at -2.54.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
Years | 08-2016 | 08-2018 | 08-2020 | 08-2022 | Trend |
---|---|---|---|---|---|
Revenue | -8.9% | -13% | 6.6% | 4.7% | 1.7% |
Net Income | - | - | 300% | 200% | 120% |
Stockholders Equity | -6.5% | -10% | -3.1% | 2.5% | 3.1% |
FCF | -4.8% | -4.1% | 130% | 58% | 22% |
The Revenue CAGR over the past 5 years is -12.74%.
The trend of Revenue growth rate over the past 5 years is +1.69%.
The Earnings CAGR over the past 5 years is -.
The trend of Earnings growth rate over the past 5 years is +123.21%.
The Equity CAGR over the past 5 years is -10.18%.
The trend of Equity growth rate over the past 5 years is +3.1%.
The FCF CAGR over the past 5 years is -4.09%.
The trend of FCF growth rate over the past 5 years is +22.4%.