Steel Works, Blast Furnaces & Rolling & Finishing Mills
Haynes International, Inc. develops, manufactures, markets, and distributes nickel and cobalt-based alloys in sheet, coil, and plate forms in the United States, Europe, China, and internationally. The company offers high-temperature resistant alloys (HTA) and corrosion-resistant alloys (CRA). Its HTA products are used by manufacturers of equipment, including jet engines for the aerospace market; gas turbine engines for power generation; waste incineration; and industrial heating equipment. The company's CRA products are used in various applications, including chemical processing, power plant emissions control, and hazardous waste treatment. Its products also have applications in flue-gas desulfurization, oil and gas, waste incineration, industrial heat treating, automotive, thermocouples, sensors and instrumentation, biopharmaceuticals, solar, and nuclear fuel. In addition, the company produces products as seamless and welded tubulars, as well as in slab, bar, billet, and wire forms. It sells its products primarily through direct sales organizations, and network of independent distributors and sales agents. Haynes International, Inc. was founded in 1912 and is headquartered in Kokomo, Indiana.
Sector
Discounted Cash Flow Valuation of Haynes International Inc
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 | $13.04M | $13.31M | $13.58M | $13.85M | $14.14M | $14.42M | $14.72M | $15.02M | $15.32M | $15.63M | $15.95M | $159.5M |
DCF | $11.57M | $10.27M | $9.109M | $8.082M | $7.171M | $6.362M | $5.645M | $5.008M | $4.444M | $3.942M | $39.42M | |
Value | $111M |
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 | 09-2015 | 09-2016 | 09-2017 | 09-2018 | 09-2019 | 09-2020 | 09-2021 | 09-2022 | 09-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Net Margin | 6.2% | 1.2% | -2.6% | -5% | 2% | -1.7% | -2.6% | 9.1% | 7.1% | 6.3% |
ROA | 7.5% | 0.65% | -2.7% | -0.55% | 3% | 0.11% | -1.3% | 9.1% | 8.2% | 7.6% |
ROE | 8.8% | 1.6% | -3.1% | -6.6% | 3.3% | -2.2% | -2.6% | 12% | 9.6% | 8.5% |
The average Net Margin over the past 5 years is +1.46%.
The trend of Net Margin over the past 5 years is +2.31%.
The average ROA over the past 5 years is +3.08%.
The trend of ROA over the past 5 years is +1.73%.
The average ROE over the past 5 years is +2.24%.
The trend of ROE over the past 5 years is +3.03%.
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 | 09-2015 | 09-2016 | 09-2017 | 09-2018 | 09-2019 | 09-2020 | 09-2021 | 09-2022 | 09-2023 | TTM |
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Debt FCF | 0.15 | - | - | - | - | - | - | - | - | 0.04 |
Debt Equity | 0.01 | - | - | - | - | - | - | - | - | 0.00 |
MIN | ||||||||||
Graham Stability | - | - | -79% | -260% | - | - | - | - | 100% | -260% |
The Debt/FCF trailing twelve month is 0.04.
The trend of Debt/FCF over the past 5 years is -.
Graham’s Stability measure stands at -2.63.
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 | 09-2016 | 09-2018 | 09-2020 | 09-2022 | Trend |
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Revenue | 5.5% | 6.3% | 16% | 20% | 3.2% |
Net Income | 35% | - | - | -6.7% | -53% |
Stockholders Equity | 4.9% | 5.4% | 13% | 16% | 2.3% |
FCF | - | - | - | - | -1% |
The Revenue CAGR over the past 5 years is +6.27%.
The trend of Revenue growth rate over the past 5 years is +3.15%.
The Earnings CAGR over the past 5 years is -.
The trend of Earnings growth rate over the past 5 years is -52.69%.
The Equity CAGR over the past 5 years is +5.44%.
The trend of Equity growth rate over the past 5 years is +2.31%.
The FCF CAGR over the past 5 years is +5.93%.
The trend of FCF growth rate over the past 5 years is -1.02%.