Discounted Cash Flow (DCF) Analysis Unlevered
Communications Systems, Inc. (JCS)
$8.18
-0.71 (-7.99%)
All numbers are in Millions, Currency in USD
Operating Data
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
Revenue | 82.32 | 65.76 | 50.91 | 42.58 | 7.01 | 4.51 | 2.90 | 1.87 | 1.20 | 0.77 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
EBITDA | -8.60 | -4.13 | 7.53 | -0.78 | -8.16 | -1.08 | -0.70 | -0.45 | -0.29 | -0.19 |
EBITDA (%) | ||||||||||
EBIT | -11.79 | -6.35 | 6.49 | -1.75 | -8.36 | -1.21 | -0.78 | -0.50 | -0.32 | -0.21 |
EBIT (%) | ||||||||||
Depreciation | 3.19 | 2.21 | 1.03 | 0.96 | 0.20 | 0.13 | 0.08 | 0.05 | 0.03 | 0.02 |
Depreciation (%) |
Balance Sheet Data
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
Total Cash | 17.99 | 11.06 | 23.38 | 15.85 | 3.49 | 1.55 | 1 | 0.64 | 0.41 | 0.27 |
---|---|---|---|---|---|---|---|---|---|---|
Total Cash (%) | ||||||||||
Account Receivables | 12.18 | 13.40 | 10.24 | 10.18 | 1.39 | 0.89 | 0.57 | 0.37 | 0.24 | 0.15 |
Account Receivables (%) | ||||||||||
Inventories | 13.98 | 16.18 | 8.53 | 8.70 | 0.19 | 0.74 | 0.47 | 0.30 | 0.20 | 0.13 |
Inventories (%) | ||||||||||
Accounts Payable | 4.55 | 5.39 | 3.72 | 2.38 | 0.80 | 0.34 | 0.22 | 0.14 | 0.09 | 0.06 |
Accounts Payable (%) | ||||||||||
Capital Expenditure | -0.77 | -0.76 | -0.42 | -0.25 | -0.06 | -0.04 | -0.03 | -0.02 | -0.01 | -0.01 |
Capital Expenditure (%) |
Weighted Average Cost Of Capital
Share price | $ 8.18 |
---|---|
Beta | 0.600 |
Diluted Shares Outstanding | 2.42 |
Cost of Debt | |
Tax Rate | 136.47 |
After-tax Cost of Debt | -1.58% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 7.168 |
Total Debt | 0.17 |
Total Equity | 19.79 |
Total Capital | 19.95 |
Debt Weighting | 0.84 |
Equity Weighting | 99.16 |
Wacc |
Build Up Free Cash
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
Revenue | 82.32 | 65.76 | 50.91 | 42.58 | 7.01 | 4.51 | 2.90 | 1.87 | 1.20 | 0.77 |
---|---|---|---|---|---|---|---|---|---|---|
EBITDA | -8.60 | -4.13 | 7.53 | -0.78 | -8.16 | -1.08 | -0.70 | -0.45 | -0.29 | -0.19 |
EBIT | -11.79 | -6.35 | 6.49 | -1.75 | -8.36 | -1.21 | -0.78 | -0.50 | -0.32 | -0.21 |
Tax Rate | 0.29% | -6.35% | -2,648.69% | -1.15% | 136.47% | -503.88% | -503.88% | -503.88% | -503.88% | -503.88% |
EBIAT | -11.75 | -6.75 | 178.45 | -1.77 | 3.05 | -7.34 | -4.72 | -3.04 | -1.95 | -1.26 |
Depreciation | 3.19 | 2.21 | 1.03 | 0.96 | 0.20 | 0.13 | 0.08 | 0.05 | 0.03 | 0.02 |
Accounts Receivable | - | -1.22 | 3.16 | 0.06 | 8.79 | 0.49 | 0.32 | 0.20 | 0.13 | 0.08 |
Inventories | - | -2.19 | 7.64 | -0.17 | 8.50 | -0.54 | 0.26 | 0.17 | 0.11 | 0.07 |
Accounts Payable | - | 0.84 | -1.67 | -1.34 | -1.58 | -0.46 | -0.12 | -0.08 | -0.05 | -0.03 |
Capital Expenditure | -0.77 | -0.76 | -0.42 | -0.25 | -0.06 | -0.04 | -0.03 | -0.02 | -0.01 | -0.01 |
UFCF | -9.34 | -7.87 | 188.19 | -2.50 | 18.90 | -7.75 | -4.20 | -2.70 | -1.74 | -1.12 |
WACC | ||||||||||
PV UFCF | -7.23 | -3.67 | -2.20 | -1.32 | -0.80 | |||||
SUM PV UFCF | -15.22 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 7.09 |
Free cash flow (t + 1) | -1.14 |
Terminal Value | -22.44 |
Present Value of Terminal Value | -15.94 |
Intrinsic Value
Enterprise Value | -31.16 |
---|---|
Net Debt | -3.32 |
Equity Value | -27.83 |
Shares Outstanding | 2.42 |
Equity Value Per Share | -11.51 |